Viterra and ABB Merger

[charliep]

This process seems to be moving along relatively quickly and seems to be flying under the radar at least here in Canada. There is more discussion in Australia. Thoughts after you have had a chance to think about it while you have gone through seeding time and have had that alone time in the tractor seat to formulate ideas.

Already talked about logistics and the ability of Viterra/ABB to spread risk across two continents. another question for me is the ability of the new company (assuming it goes) to share technology and farmer services across two regions.

[dmlfarmer]

The merger is great news for Viterra and Viterra shareholders but I do not see how it benefits Canadian farmers.

After the merger, Viterra will be able to easily source grain from 2 countries. I suggest they will market the grain which returns the greater profit first. Therefore the farmers willing to sell cheaper, or the grain which can be moved to market at a lower cost will likely move first.

While there will still be a demand for Canadian grain, will not competitive pricing pressures given one less company mandated to move just Canadian grain coupled with the distinct location advantage of Austrailia to the huge Asian markets will actually pressure the price and slow the sale of Canadian grain after the merger?

As far as techology and farmer services, we should have seen a benefit already given the Cargills, Bunges, and ADM that dominate the world trade of grain.

This merger is nothing new in the global grain trade. We simply lost the only major grain company focused on selling just Canadian grain.

[Burbert]

Viterra will be able to run ABB totally to the ground in a short time. With all their senergy, big ideas and poor, poor operating skills the Aussies will soon have one less grain company to deal with. Viterra is however good at tearing terminals down and closing their doors. Mostly they just want to sell you sh-t, not buy grain............

[wilagro]

Viterra is just another grain buying company. What other companies they buy is of no interest to me. There are some farmers who own shares in Viterra but they will never control it...ever.

[Hopperbin]

All I know is they are going to have a hard time selling anhydrous next year since their delivery trucks cannot work past 7;30pm.

Only a matter of time if to remain successful they must go global. They must also be in good standing with the producers they deal with.

[Koldkanuck]

All I know, is that after SWP merged with Agricore, the company has gone done the drain in my books. I quit dealing with the Pool years ago, because no one there wanted to work before 8:00AM or after 5:PM. Dealt with Agricore after that, and no problem at all getting fertilizer, chemicals, etc. 7 days a week, 6:30AM until 10P.M. Now all the old pool guys are working at the Agricore plant (Viterra), and its allready gone down hill. Its a joke. This year, most of our business went next door to Richardson Pioneer and P&H. Mayo Shit will run this company down just like the Pool, then watch them sell it off to his old company he worked for ..ConAgra for a few cents on the dollar.