One elevator involved in the recent sale of Louis Dreyfus facilities to Parrish & Heimbecker is being challenged by the Canadian Competition Bureau. The Bureau says the former LD facility outside Virden, Manitoba and the P&H elevator in Moosomin, SK were “close competitors”, and this purchase eliminates that competition.
Because both elevators are now owned by the same company, the Bureau says that they will no longer compete to offer farmers the best prices for wheat and canola, and that will result in lower income for local farmers.
Looking at a map of grain elevators around Virden, one can see that farmers in the Virden area have few choices for online grain elevators. The closest non P&H elevators to Virden are Cargill in Oakner, Viterra in Souris, Richardson Pioneer in Kemnay, or Cargill in Elva 80 km south.
Farmers between Moosomin and Virden appear to have no real alternative other than to drive considerably farther to one of the other elevators.
The filed notice calls on P&H to sell one of the two elevators and to not acquire any elevator in the area for 10 years unless approved by the Competition Bureau.