THE PRESIDENT of the Victorian Farmers Federation (VFF) said farm lobby groups will watch the proposed takeover of grain breeder Intergrain by fellow research and development (R&D) business Australian Grain Technologies (AGT).
David Jochinke said growers wanted a strong and robust R&D sector and added that a merger may decrease competition in the space.
“If this deal were to go ahead then there would not be a lot of breeding players in Australia, would we be increasingly reliant on international breeding initiatives?” he questioned.
“This is not just an issue for Australia’s grain breeding sector but also those involved in pre-breeding R&D, it is a whole of industry matter.”
The proposal is for AGT to buy Intergrain. AGT is Australia’s largest wheat breeder while Intergrain is strong in barley.
It follows a move earlier in the year for Monsanto to divest its 26 per cent stake in the business, to leave it jointly owned by the Western Australian Agriculture Authority (WAAA) and the Grains Research Development Corporation (GRDC).
Any proposed acquisition will be required to get Australian Competition and Consumer Commission (ACCC) approval.
Officials from the two companies were quick to hose down any potential competition issues, saying a merged company would be a strength to the Australian grains industry.
“Bringing Intergrain wheat and barley breeding expertise, germplasm and people into AGT will help to strengthen our breeding team while accelerating our impact in barley and udon noodle wheat genetics,” said Haydn Kuchel, AGT chief executive officer.
Intergrain chief executive officer Tress Walmsley said growers should be excited about the future of cereal breeding, including in noodle varieties and barley, based on combined expertise of Intergrain and AGT.
“We have entered into formal negotiations with AGT but I want to make it clear that this is a long way from being a done deal and many steps (including due diligence, commercial negotiations on the terms and regulatory review) need to be completed before a transaction occurs,” Ms Walmsley said.