Thursday June 20, 2013




Letter to the Editor - Viterra sale questioned

Dear Editor:

Some politicians and shadow farm groups are doing everything but stand on their heads to claim the Viterra sale is a good thing!

Not many touch the issue whether it will be possible for farmers, except Gerry Ritz’s private lobby group, the Grain Growers of Canada. Their twisted logic implies that since overall grain handling will be roughly 30% for the remaining three larger players - this should be a good thing. Here in the real world where the rest of us live and grow grain, the issue of where the elevators are located and their closest competitor is more relevant than the cumulative average of their grain handle! Who cares if one company only handles 30% if it has the only elevator within 100 miles!!

With this deal, many towns will now see competition disappear on the grain handle side. The grain industry had already reduced cmpetition by re-dividing their facilities’ when Agricore United was purchased. Now another re-dividing will occur with Viterra facilities.

Not one new competitor is coming into place.  There is only the loss of one and redistribution of Viterra facilities within companies who were already in the market!  And there is nothing to say there will not be more purchases and “re-allocating” of facilities.  This used to be called “collusion”.

With respect to fertilizer outlets Agrium will have a virtual monoploy in many areas. Many other areas will lose competing sites and further amalgamation will occur.

It is ironic that the Conservatives were so steadfast in destroying the farmers’ single desk.  But with their actions they have purposefully allowed the grain companies and fertilizer dealers to develop monopolies in local areas. So much for MARKET FREEDOM Gerry!

Eric Sagan
Melville, SK


Comments


NOTE: To post a comment in the new commenting system you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Yahoo, OpenID. You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

The Yorkton This Week welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. For further information, please contact the editor or publisher, or see our Terms and Conditions.

blog comments powered by Disqus




Quick Vote

  • Do you agree with council’s decision to spend 150,000 surplus dollars on airport repairs?
  • Yes
  • 72%
  • No
  • 28%
  • Total Votes: 58


Markets





LOG IN



Lost your password?