SASKATOON, April 11, 2025 — A decade after the privatization of the Canadian Wheat Board (CWB), its transformation into G3 Canada Ltd., partially owned by Saudi interests, continues to stir discussion among Saskatchewan farmers and industry leaders. The deal, which saw a Saudi government-backed company invest in one of Canada’s largest grain handlers, highlights tensions between global investment and local control in the province’s vital wheat sector.
In 2015, the CWB, once a farmer-controlled marketing board, was privatized and acquired by G3 Global Grain Group, a joint venture between Bunge Canada, a subsidiary of U.S.-based agribusiness giant Bunge Limited, and SALIC Canada, a wholly owned subsidiary of the Saudi Agricultural and Livestock Investment Company (SALIC). SALIC, established in 2011 by Saudi Arabia’s government to secure food supplies through global agricultural investments, is funded by the Saudi Public Investment Fund (PIF), the kingdom’s sovereign wealth fund. No other investors are publicly listed for SALIC, which operates as a state-directed entity. G3’s ownership structure includes Bunge Canada and SALIC Canada, with no additional external investors disclosed beyond their initial 50.1% stake in the CWB acquisition. The remaining 49.9% was held in a trust for farmers delivering grain to G3, with an option for G3 to buy those shares after seven years, a process completed by 2022.
The $250 million deal ended the CWB’s single-desk system, which had marketed Western Canadian wheat and barley globally since 1935. Renamed G3 Canada Ltd., the company now operates grain elevators, export terminals, and rail infrastructure, handling a significant portion of Saskatchewan’s wheat exports. Saskatchewan, producing roughly 40% of Canada’s non-durum wheat and 80% of its durum, remains a cornerstone of the global grain trade, making G3’s role critical.
Supporters’ Perspective: Industry advocates argue the privatization and Saudi investment revitalized the CWB’s assets. “The deal brought capital to modernize grain handling,” said Clair Langlois, a former CWB director who supported the transition. “G3’s investments in state-of-the-art elevators and terminals, like those in Saskatoon and Vancouver, have boosted efficiency and global competitiveness.” Proponents, including some grain companies, say SALIC’s involvement ensures stable markets for Saskatchewan wheat, as Saudi Arabia, reliant on imports, prioritizes long-term food security partnerships. They note that farmers now have more marketing options, freed from the CWB’s former monopoly.
Critics’ Concerns: Opponents, including the National Farmers Union (NFU), contend the sale diminished farmer control over a key institution. “The CWB was built by farmers, for farmers,” said NFU president Stewart Wells. “Its privatization handed wealth and influence to foreign corporations, including SALIC, which answers to Saudi state interests.” Critics argue that G3, as a profit-driven multinational, may prioritize shareholder value over fair prices for producers. Some farmers worry that concentrated corporate control of grain infrastructure could limit market access or depress local prices, particularly for smaller operations. “It’s not about Saudi Arabia owning our wheat,” said Regina-area farmer Jane Cory, “but about who holds the reins in our supply chain.”
The debate reflects broader questions about globalization in agriculture. SALIC’s stake in G3 aligns with its investments in Australia, Ukraine, and Poland, securing grain supplies for a desert nation dependent on imports. For Saskatchewan, G3’s role strengthens export capacity but raises concerns about local autonomy in a province where wheat fuels rural economies.
As G3 Canada expands, with new facilities planned across the Prairies, both sides agree the grain sector is evolving. Whether Saudi investment represents opportunity or loss remains a point of contention among those who grow Canada’s breadbasket.
Written by GROK after it was asked to research this topic: https://x.com/i/grok
These websites were used as sources:
- National Farmers Union (NFU) – Canadian Wheat Board Page
https://www.nfu.ca/campaigns/canadian-wheat-board/
This page outlines the NFU’s efforts to oppose the CWB’s privatization, including their criticism of the sale to G3 (a joint venture involving SALIC) and their advocacy for restoring farmer control over grain marketing. - National Farmers Union – 2020 Article: “2020 Hindsight: Ending the Canadian Wheat Board Was an Economic Tragedy”
https://www.nfu.ca/2020-hindsight-ending-the-canadian-wheat-board-was-an-economic-tragedy/
This article details the NFU’s view that the CWB’s dismantling, culminating in its sale to Bunge and SALIC, was a significant loss for farmers, emphasizing the transfer of assets and reduced transparency. - Council of Canadians – 2015 Article: “Harper Sells Wheat Board to US Corporation & Saudi Investment Fund”
https://canadians.org/analysis/harper-sells-wheat-board-us-corporation-saudi-investment-fund/
This piece criticizes the privatization as a “sell-out” to foreign entities, including SALIC, and highlights concerns about the loss of a key Canadian institution built by farmers. - rabble.ca – 2015 Article: “SOLD! Canadian Wheat Board No Longer Quite So Canadian”
https://rabble.ca/news/sold-canadian-wheat-board-no-longer-quite-so-canadian/
This article, quoting NFU leaders, describes the privatization as a wealth transfer from farmers to Bunge and SALIC, raising issues about secrecy and the undervaluation of CWB assets. - rabble.ca – 2022 Article: “The Ongoing Saga of the Privatization of the Canadian Wheat Board”
https://rabble.ca/columnists/the-ongoing-saga-of-the-privatization-the-canadian-wheat-board/
This piece discusses a class-action lawsuit alleging misuse of farmer funds during the CWB’s privatization, with concerns about the transfer of assets to G3 (Bunge and SALIC) and government accountability.
These links provide detailed perspectives from groups and writers who share concerns about the CWB’s privatization and SALIC’s role, focusing on the impact on farmers and Canadian agriculture.
G3 co-owner increases stake in global grain trade
Market analyst thinks Saudi firm’s takeover of world’s fifth largest grain company will see Bunge’s exit from G3 Canada ownership
By Sean Pratt Published: February 27, 2025
The Saudi Agricultural and Livestock Investment Company (SALIC) is making headlines with the announcement that it is increasing its ownership position in Olam Agri, which is the fifth largest grain company in the world. SALIC is the majority owner of G3 Canada. | Screencap via salic.com
SASKATOON — The majority owner of G3 Canada has just become the majority owner of a much bigger grain company.
The Saudi Agricultural and Livestock Investment Company (SALIC) has a 75 per cent ownership stake in G3 Global Holdings, with the other 25 per cent controlled by Bunge.
G3 Global is the majority owner of G3 Canada Ltd., which operates 19 grain elevators in Western Canada, one in Quebec and port terminals in Thunder Bay, Hamilton, Quebec City and Trois Rivieres.
The other ownership partners in that venture are western Canadian farmers via G3’s Farmers Equity Plan.
G3 Canada was recently in the news because there was speculation Bunge would have to divest its ownership stake in the company as part of its takeover of Viterra.
However, the federal government did not make that a requirement when it approved the takeover earlier this year, much to the chagrin of some farm groups.
Now SALIC is making headlines with the announcement that it is increasing its ownership position in Olam Agri, which is the fifth largest grain company in the world, according to a January 2025 ranking by EssFeed.
Olam Agri processed 39 million tonnes of grain in 2023, generating US$23.41 billion in revenues and $723.9 million in earnings.
SALIC was established in 2009 as the food and agriculture investment arm of the Public Investment Fund of the Kingdom of Saudia Arabia.
SALIC has agreed to increase its ownership stake in Olam Agri to 80.01 percent from 35.43 per cent through a US$1.78 billion transaction with Olam Group. The deal is subject to regulatory approvals.
“This acquisition underscores SALIC’s ambition to secure a key position in the global grains sector,” SALIC’s chief executive officer, Sulaiman AlRumaih, said in a news release.
Olam Group has agreed to sell its remaining 19.99 per cent stake to SALIC on the third anniversary of the completion of the $1.78 billion deal, making SALIC the sole owner of the Singapore-based grain company.
Neil Townsend, chief market analyst with GrainFox, wonders if SALIC’s stronger ties with Olam might spell the end of its partnership with Bunge.
“I think it would almost have to,” he said.
He thinks G3 has relied on Bunge to assist with its international marketing efforts, but it can now lean more heavily on Olam’s experience and contacts.
Olam is a major player in Southeast Asia where a lot of Canadian grain is exported, so there could be some good synergies for G3.
“I don’t think it hurts,” said Townsend.
G3 was contacted for this story but declined to be interviewed.
In the meantime, SALIC continues to invest in Canada’s grain sector through its ownership stake in G3.
G3 recently announced plans to build a new grain terminal facility at the Port of Trois-Rivieres, Que.
The project will replace the company’s current facility at the port to improve efficiency, safety and reduce environmental impact.
The new 65,000 tonne facility will feature three high-speed receiving lanes, significantly reducing wait times and increasing its grain handling capacity at the port.
G3 is also installing three new modern ship loaders with “state-of-the-art” dust control technology.
The project is expected to be complete ahead of the 2027 growing season.
Shared from https://www.producer.com/news/g3-co-owner-increases-stake-in-global-grain-trade/
Feds approval of Bunge-Viterra merger frustrates farmers
By Zak McLachlan Published: January 22, 2025
The acquisition of Regina-based Viterra by global agribusiness and food company Bunge has been in the works for some time, and the move has been met with concerns from the industry, focused mostly on the long-term impact on grain market competition. | File photo
Bunge will be required to divest of six grain elevators in Western Canada and invest at least $520 million in Canada
Glacier FarmMedia – Following the approval of Bunge’s acquisition of Viterra on Jan. 14, stakeholders made their voices heard in a wave of reactions to the controversial merger.
The acquisition of Regina-based Viterra by global agribusiness and food company Bunge has been in the works for some time, and the move has been met with concerns from the industry, focused mostly on the long-term impact on grain market competition.
After the acquisition was first proposed in 2023, the University of Saskatchewan launched a study to examine the potential impacts on the Canadian grain industry. Several issues were noted in the report published at the completion of the study, and many of those issues are still the primary focus of stakeholders in the industry today.
“With the lack of existing competition within the grain handling industry, further consolidation through this merger will only harm producers,” said Saskatchewan Wheat Development Commission chair Jake Leguee in a news release.
“The conditions around the approval of the merger fail to address concerns regarding competition and consolidation of grain-handling industry that producers and researchers have raised repeatedly to the government.”
Much of the concern stems from Bunge’s minority ownership stake in G3, which, along with the acquisition of Viterra’s assets, would give Bunge control of nearly half of the export capacity at the Port of Vancouver.
The nation’s largest port is a critical hub for the grain industry, with about 70 per cent of Canada’s grain exports moving through Vancouver each year.
The U of S report also estimated that the merger would cost Canadian grain producers $770 million annually in revenue due to the increased lack of competition in the market.
Bunge chief executive officer Gregory Heckman published an op-ed shortly after the report was released, denying the projected revenue loss and asserting that the move would be a positive one for the Canadian grain industry.
In his op-ed published in May 2024, Heckman said Bunge will “continue to buy the same crops as we do today and help Canadian farmers export more of their products to more places around the world, keeping Canada at the forefront of a competitive agricultural industry where success is increasingly defined by global reach.”
However, many stakeholders are still not convinced.
Grain Growers of Canada released a statement expressing frustration over the approval, calling on the federal government to impose more strict conditions on the transaction to further safeguard farmers.
“This is a missed opportunity to protect competition in Canada’s grain sector and prioritize the interests of producers who grow the food that Canada and the world rely on,” GGC executive director Kyle Larkin said in a news release.
“We are urging the government to revisit these conditions, strengthen measures to foster competition, and take meaningful steps to support Canada’s grain farmers.”
The merger approval does come with conditions. Some of them require Bunge to divest of six grain elevators in Western Canada, invest at least $520 million in Canada in the next five years and retain Viterra’s head office in Regina for at least five years.
Agricultural Producers Association of Saskatchewan president Bill Prybylski said that while he is cautiously optimistic that some producer concerns have been addressed with the conditions, he believes more can be done to support farmers and ensure a competitive marketplace.
“The government’s decision has begun to address critical issues we’ve raised, particularly around the need for enhanced competitiveness and sustainability for farmers. However, achieving real progress requires these policies to move beyond initial promises towards practical and impactful outcomes,” Prybylski said in a statement.
Canadian Federation of Agriculture president Keith Currie also voiced his frustration on the matter, adding that allowing Bunge to keep its stake in G3 raises eyebrows about fairness in the marketplace.
“We need to ensure that, at a minimum, the conditions set around this deal are being met. Our concerns from the beginning were that this deal would not be in the best interests of farmers and the fact that Bunge has maintained its minority ownership stake in G3 certainly furthers those concerns,” Currie said.
“Unfortunately, at the end of the day, it is the farmers who will pay.”
Not everyone thinks the merger is bad news.
Murad Al-Katib, president of AGT Foods, said producers still have alternatives.
“You’ve got large established alternatives like Richardson, like P&H, who did take the Dreyfus business in Canada recently. You’ve got G3 and you’ve got AGT.”
He said because companies like Archer Daniels Midland and Dreyfus weren’t as strong in the western Canadian market, that allowed the others to participate.
“That left room for players that aren’t small, like we’re all kind of in the millions of tonnes, right? So I’m still optimistic that farmers have good alternatives.”
Approval from Ottawa was one of the final hurdles for Bunge to complete the deal, which is now expected to close sometime early in 2025.
Shared from https://www.producer.com/news/feds-approval-of-bunge-viterra-merger-frustrates-farmers/
SALIC: Our Contribution to Vision 2030
Advancing Vision 2030 through Agrifood Leadership
We are dedicated to shaping the future of the agrifood sector, focusing on sustainable and impactful investments that enhance food security and contribute to the Vision 2030, supporting national strategies like the National Food Security Strategy and the National Agriculture Strategy. Our aim is to boost self-sufficiency, expand into new markets, build expertise, create job opportunities, and enhance Saudi Arabia’s global presence. Through these efforts, we strive to make a meaningful impact on both local and global scales.
Whistleblowing
SALIC Whistleblowing policy sets the standards to be adhered to by all employees and related parties of SALIC to report any suspected or actual violations.
Anonymous Reporting
Anonymous reporting is permissible under SALIC’s Whistleblowing Policy, as SALIC would rather receive anonymous reports than not having the concern reported at all, we encourage all SALIC representatives and clients to report any violations or misconduct without any fear through confidential and secure channels, by providing and emphasizing on the protection of anyone raising a genuine concern about suspected wrongdoing from reprisal, even if they turn out to be mistaken.
Shared from https://www.salic.com/