North America’s agricultural giants had a tough year in 2025, contending with a record harvest and a global grain glut, and trade tensions that almost eliminated sales to China.Jeff McIntosh/The Canadian Press
A worldwide grain glut and North American trade tensions with China took a toll on agricultural giant Bunge Global SA BG-N, as it reported its weakest fourth-quarter results in seven years.
Net income in the last quarter of 2025 for the Missouri-based company was US$95-million, compared with US$602-million in the same period in 2024. Reported fourth-quarter earnings a share was 49 US cents compared with US$4.36 in 2024.
The company also reported a 2026 outlook below analysts’ estimates, predicting continued market volatility and tight margins.
However, thanks to its 2025 acquisition of Canadian grain heavyweight Viterra, the company is in a “position of greater strength than at any point in our history,” chief executive Gregory Heckman said on an earnings call Wednesday.
Bunge’s US$8.2-billion merger with Viterra was finalized July 2. The deal combined the company in Western Canada having the most oilseed-crushing facilities (Bunge) with the company having the most primary grain elevators (Viterra).
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Cost savings from the merger are being realized ahead of schedule, according to the earnings call, with US$70-million already realized in 2025 and a further US$190-million expected by year end.
“With the addition of Viterra, we now have greater reach across origins and destinations, deeper insight into global flows, more capability and optionality to serve customers, and manage risk,” said Mr. Heckman in the earnings call, adding that being a bigger company will help it withstand a difficult geopolitical environment.
North America’s agricultural giants faced a tough 2025, contending with a record harvest and a global grain glut alongside trade tensions that almost eliminated sales to one of the world’s largest grain importers – China.
Washington and Beijing’s 2025 trade war cut off U.S. soybean exporters from a market that imported 26.8 million tonnes in 2024, while China’s tariffs on Canadian canola cut off Prairie farmers and grain companies from a $5-billion market.
In January, Beijing slashed its duties on Canadian canola seed to 15 per cent from 75.8 per cent and removed tariffs on canola meal after Prime Minister Mark Carney’s trip to China.
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In November, Beijing also agreed to import 12 million tonnes of U.S. soybeans by the end of February, and at least 25 million tonnes through to 2028.
However, the costs of these trade disputes continue to ripple throughout North America’s agricultural markets. Even accounting for the 12-million-tonne deal, China’s total soybean imports for 2025 were the lowest since 2018. On Tuesday, John Boozman, the chair of the U.S. Senate’s agriculture committee, and more than two dozen former industry leaders said in a letter farmers were still suffering heavy losses and warned of a “widespread collapse of American agriculture.”
Canadian canola imports are expected to resume March 1, however, questions remain about whether shipments will be price competitive, and whether exporters will be able to move enough inventory before next year’s harvest.
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Low farmer margins and high inventories are carrying over into the first quarter of 2026, chief financial officer John Neppl said in the earnings call.
Biofuel policy in the U.S. is an added complexity moving into 2026, Mr. Neppl said. Corn, canola and soybean are a key source of feedstock for the clean fuel markets on both sides of the border. The Trump administration is considering making changes to the regulations around clean fuels.
However, with the Viterra acquisition, Bunge believes it is well positioned for whatever 2026 might have in store.
“We’ve got the geographical balance,” Mr. Heckman said. “We should have the absolute best cost position to be there with the right product, the right quantity, the right quality, at the right price.”