Bunge and Viterra to Combine to Create a Premier Diversified Global Agribusiness Solutions Company
As the demand for food, feed, and fuel grows, strong value chains are becoming increasingly important in order to provide easy access from production to consumption. Bunge and Viterra, two of the world’s largest agribusiness companies, recently announced a merger that will combine their assets and allow them to expand geographically. As a result, both farmers and end users will benefit from the improvement and integration of value chains. They also aim to improve the traceability and sustainability of their supply chains.
While the merger is expected to benefit farmers and consumers, there are some concerns within the industry. According to the Consumer Federation of America, reduced market competition due to the consolidation of oilseed processing capabilities and less competition for farmers’ crops may harm plant-based food and biofuel manufacturers.
It is surely a significant step toward bringing the merged company closer to market leaders like ADM and Cargill and increasing market penetration. It will also assist them in expanding their regional capabilities and strengthening their position in markets such as North America, South America, and Ukraine.