Canada-NFU Look at merger.

CANADA-NFU LOOK AT MERGER.

The National Farmers Union (NFU) is looking with jaded eyes at an invitation from the Competition Bureau to discuss proposed fertilizer company mergers, after a similar meeting last year ended in a merger farmers say hurts their bottom line.

The union says it’s happy to work with the federal bureau in evaluating the costs and benefits of proposed mergers, such as the proposed Agrium Inc./CF Industries deal, but wants answers regarding the merger of Tyson Foods Inc. and XL Foods.

Association president Stewart Wells said the NFU was consulted by the bureau about the merger of the two beef packers -- a move the union opposed -- but the federal agency never answered questions about the guidelines used to make such decisions.

"What we’ve said is we’re happy to work with them, but we need them to work with us as well and they haven’t answered our questions that were raised around the beef issues," Wells said. "So we don’t even know what sort of methodology they might be looking at, in which case we really wonder if the interests of farmers are being served."

The NFU charges the Competition Bureau has approved virtually every major agriculture-related merger put before it in the past decade. With possible fertilizer company mergers on the horizon, the union wants to make sure the bureau understands the implications such marriages would have on the average family farm.

The union says the five largest North American fertilizer companies -- Agrium, CF, Terra Industries, Potash Corp. of Saskatchewan Inc. and Mosaic Co. -- had combined 2007 profits of $3 billion and combined 2008 profits close to $10 billion.

"These potash companies have been making these record profits and what it really looks like they’re up to is further carving up the available markets. It seems to us there should be a really thorough examination of the whole business with an eye to actually fostering real competition in the sector," Wells said.

The union received an e-mail from the bureau on March 25 asking to schedule a call between representatives of both groups; however, a date for that call has yet to be scheduled. A representative from the Competition Bureau was unavailable to comment Tuesday.