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CCCA_V2No2_Agribusiness-FIN.qxd:CCCA_V1No1_DriversSeat-FIN.qxd 5/1/08 2:48 PM Page 47 Feature Obviously, with UAP, we feel that we have timed it perfectly, but and partnerships wherever you can, and that is certainly a chal- I guess that that is always the challenge,” she says. lenge that some of the smaller players may have. And even when the mergers are over, challenges for counsel “But I think, that being said, that the various non-traditional continue. Sandra Swystun, currently general counsel at Viterra, uses of our Canadian agricultural commodities might allow those spent five years withAU before the merger.“You have the imme- smaller players to find a place for themselves in all this,” he adds. diate challenge of dealing with a merger and bringing together two different companies and two different ways of doing busi- Twin drivers of growth ness,” she points out. So the agribusiness industry is now turning its attention to more “And you’re bringing into the mix some kinds of businesses pressing issues, including the dual drivers behind the industry that weren’t otherwise dealt with at the other company,” adds boom: a growing demand from governments and consumers for Swystun. In her case, this meant a learning curve with respect to biofuels such as corn-powered ethanol,and an increased hunger for the livestock investments that were once held by SWP, and shar- food in formerly third-world countries climbing out of poverty. ing information about AU’s canola breeding program with “Ethanol is one component of it,but really it’s the internation- lawyers who hadn’t been previously involved. al drivers,” says O’Donoghue.“It’s the Chinas, the Indias — it’s “There are new aspects to the business for all of the lawyers, the world population shift and the growth in those countries that and real challenges to help the operating units to meld the way is really driving the agricultural cycle.” they want to do business going forward,” says Swystun.“Also, to Buckingham agrees. “Biofuels are pretty straightforward.You help them look at opportunities for doing business differently, or produce the grain,turn it into alcohol,and you get it into the sys- even taking on newer kinds of business.” tem. It’s a pretty commercial process. It’s not like consumers are For the most part, the consolidation phase of the industry is going to do anything with that except fill their cars up with gas. over,says Ruest.“I think that we’ve seen the lion’s share of [larg- They don’t really care in the same way. It’s not like it’s something er mergers] having already occurred,” he says. “It’s clear that they’re going to put in their mouth.” when it comes to grain handling, margins are very small.You’re Food crop production, on the other hand, holds great industry required to operate very efficiently.You’ve got to find synergies profit potential, says Swystun. “The industry is forever seeking The industry is forever seeking better ways of making the core of what is our food. It means that from the agriculture business point of view you can become involved in things like breeding new varieties of seeds, develop- ing better ways of protecting crops, looking for newer markets. ROBERT TINKER Sandra Swystun Corporate Counsel, Viterra Winnipeg ÉtÉ 2008 CCCA Canadian Corporate Counsel Association 47