Concerned SA farmers relieved as Viterra and Cargill cancel deal
It seems Australia’s major grain marketing companies are about as reliable as SA’s 2024 growing season, with a last-minute backflip by Viterra to buy out GrainFlow sites across the state. But for grain growers concerned about lack of competition in the market, it’s a welcome termination.
In a slightly confusing triangle of companies, Cargill Australia, which owns GrainFlow’s storage and handling facilities, announced in September that it had sold off South Australia’s receival sites to Viterra – including facilities at Crystal Brook, Maitland, Mallala, Pinaroo, a mobile ship loader at Port Adelaide as well as western Victoria’s Dimboola site.
At that time, Viterra officials said the company’s intention was to double export volume and become one of the largest SA exporters.
“Growers will also see a direct benefit with reduced freight rates due to the efficiencies we will gain,” Viterra Chief Executive Officer, Phillip Hughes said in September.
But the deal is off. In the most recent announcement to growers, Hughes said Viterra and Cargill had notified the Australian Competition and Consumer Commission, that the companies had consulted in relation to the proposed acquisition and had determined to withdraw the application for review.
Offering no further explanation, Grain Producers SA CEO Brad Perry, said he had been informed that the application to the Australian Competition and Consumer Commission had been withdrawn, however he hadn’t been provided with any further details on the reasoning behind the withdrawal.
“GPSA participated in the ACCC’s public consultation on the proposed sale and outlined some of the concerns grain producers had raised with us, particularly in relation to potential competition impacts,” Perry said.
