South African Commission Probes Fresh Produce ‘Cartel’

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The Competition Commission is waging war on corporate collusion and on Thursday it conducted raids on nine fresh produce market agents. The implicated companies deny the allegations, but it could be another case of corporate collusion affecting the poor.

By GREG NICOLSON.

The Competition Commission on Thursday raided nine fresh produce dealers based at the Johannesburg Market and Tshwane Market after the Department of Agriculture, Forestry and Fisheries reported cartel conduct, which could limit the development of black farmers and raise prices in the food sector – affecting vulnerable households the most.

According to the Competition Commission, the country’s largest fresh produce market agencies were suspected of slashing prices to undercut market entrants, before raising prices when smaller companies run out of stock – aiming to suppress competition – and using identity to discriminate on price. The case is the latest in a number of high-profile investigations by the Competition Commission, dedicated to probing anti-competitive behaviour.

Competition Commissioner Tembinkosi Bonakele said the food sector is a priority and cartels of any size will be hounded. “The Commission is concerned with the prevalence of collusion in the food sector, as higher prices of these commodities affect the most vulnerable households. The…