Why competition authorities must address food markets 

14 May 2025, Carin Smaller, Executive Director and Co-founder

The Shamba Centre welcomes the recent decision by the International Competition Network (ICN) to prioritize food and agriculture markets by continuing the Special Project on Food and Agriculture through the ICN Steering Group.  This reflects a growing recognition that food and agricultural systems are impacted by anti-competitive conduct that require a coordinated response.  

Around the world, we are witnessing the concentration and vertical integration in agriculture and food supply chains. While globalization has expanded markets and consumer choices, it has also enabled anti-competitive conduct across borders. In some cases, this concentration has resulted in skyrocketing food prices. Inflation is outpacing wages, leaving families unable to afford basic essentials like food and housing. This, in turn, is fuelling a global cost-of-living crisis—worsening hunger and deepening poverty. 

How authorities are taking action

National competition regulators are uncovering the market dynamics causing food price inflation. At the recent ICN 2025 annual meeting, a plenary session, moderated by the Shamba Centre, discussed several inquiries that reveal market distortions occuring at different parts of the food value chain that potentially have cross border impact: 

  • The Competition Authority of Kenya’s inquiry into the animal feed market revealed a deeply uncompetitive sector with four vertically integrated firms controlling over half the market. The high price of feed, up to 40% higher compared with other international markets, has resulted in reduced farmer margins and inflated consumer food prices. The findings also uncovered concentration at the regional level for animal feed inputs, revealing a wider market concern. 

  • The Malaysian Competition Commission’s animal feed investigation led to a record USD 87 million fine on five major chicken feed millers for forming a cartel that distorted competition in Malaysia’s poultry feed market. Feed constitutes over 70% of chicken farming costs. This landmark decision underscored MyCC’s commitment to combating cartels, especially in sectors impacting the cost of living. 

  • The COMESA Competition Commission market studies on soybeans, vegetable oils and fertilisers uncovered high market concentration, excessive mark-ups, and harmful governments policies. The findings from the research informed action and advocacy across the region, including market inquiries and amendments to regional regulations. Savings of up to USD 1 million annually and reduced household expenditure on vegetable oil by 50–60% are expected as a result. 

  • The Australian Competition and Consumer Commission’s supermarket inquiry revealed a highly concentrated market, with two retailers controlling over two-thirds of national grocery sales. These retailers have been able to unilaterally change pricing and product volumes, often at short notice, causing consumer price hikes and disruptions to suppliers. The ACCC recommended greater pricing transparency and fairer supplier relationships in this market. 

  • The Hungarian Competition Authority’s inquiry into dairy markets found that producer prices for raw milk surged ahead of production costs and deviated from international trends. Retailers adjusted pricing strategies in response to temporary price caps on certain food products thus raising overall food costs for consumers. The Authority called for stronger cross-border data sharing, noting the clear links between global supply chain shocks and local price distortions. 

  • A fresh produce market inquiry in Saudi Arabia indicated a heavy reliance on imports, combined with fragmented regulation. To ensure fair competition between suppliers and across regions, the report recommended stronger coordination, policy coherence, and cross-border engagement to manage seasonal spikes and supply chain vulnerabilities. 

Coordinated action against anti-competitive conduct 

As the ICN plenary session clearly highlighted, tackling anti-competitive behaviour in food and agriculture markets requires enhanced cross-border cooperation and engagement. To reach this objective, we join with competition authorities to call for the following action: 

Knowledge sharing and best-practice exchanges 

Sharing case studies and best practices enhances collective capacity to respond. Data, research, and case studies helps regulators understand cross-border dynamics and global corporate behavior more effectively. 

Developing guidelines and toolkits  

Creating practical toolkits—for market monitoring, price/margin analysis, and regulatory impact assessment—empowers agencies to better evaluate food market dynamics and tackle both competition and policy challenges. 

Centralized database of cases 

A global database of market inquiries, methodologies, and outcomes offers real-time insight into trends, allows jurisdictions to learn from others and adapt solutions to local contexts. 

Advocacy for policies that support competition  

Many government policies (e.g., tariffs, export bans) unintentionally distort competition. Embedding competition concerns into government decisions can mitigate such risks. 

Spotlight on African inquiries into food markets  

The ICN, together with the World Bank, awarded the COMESA Competition Commission (CCC) and the Competition Authority of Kenya, with its prestigious Competition Advocacy Award. COMESA received the award for its research into the vegetable oil, soybean and fertiliser markets while the Competition Authority of Kenya was recognized for its inquiry into the animal feed market (read our summary of its key findings).  

These awards are further testament to the growing recognition of how anti-competitive conduct is impacting agriculture and food markets. The Shamba Centre is proud to have contributed to this work alongside the Centre for Competition, Regulation and Economic Development (CCRED) and the African Market Observatory (AMO).  

Tackling anti-competitive behaviour in agriculture and food markets is an important step towards containing the global cost-of-living crisis we face – and a step towards ending one of the root causes of hunger and poverty.