Georgia Agriculture Commissioner Tyler J Harper is calling for the United States Department of Justice and the Federal Trade Commission to launch an anti-trust investigation into Sysco’s acquisition of Restaurant Depot. Harper’s letter cites significant concerns over Sysco’s growing market share, increasing consolidation in America’s food supply chain, rising costs for American consumers, and the involvement of private equity firms.
“This proposed acquisition will dramatically reshape America’s food supply chain, making it more fragile and increasing costs on American restaurant operators and their customers,” said Harper. “American consumers cannot absorb another price shock in our food supply chain.”
Harper continued, calling the merger “part of a broader and more troubling trend of corporate consolidation in the agriculture industry and food supply chain… that continues to grow more powerful, squeezing American farmers and limiting their options.”
Decades of mergers have in agriculture and the food supply chain are increasing costs on farmers and consumers alike. The four largest US equipment manufacturers control 51% of the market. The four largest US Meatpackers control 85% of the market. In the fertilizer market, seven retailers control 70% of crop input sales and services. Four companies control 62% of the global agrichemical market. Just two companies control 90% of trait acres for American corn, soybean, and cotton seed genetics.
Harper also raised concerns over private equity’s involvement in the merger. Highlighting the fact that while Restaurant Depot had private ownership, Sysco is a publicly traded firm whose largest shareholders include BlackRock and Vanguard, and citing the disastrous of impact of private equity’s takeover of Atlanta’s single family home market.
Source : georgia.gov