COMESA raises alarm over rising mergers in agriculture sector, impacting meals costs

ZAMBIA – COMESA Competitors Fee Director and Chief Govt Officer Dr Willard Mwemba says that there was a rise in mergers and acquisitions within the agriculture sector but in addition in anti-competitive practices.

The COMESA Competitors Fee is a regional physique established beneath Article 6 of the Rules made beneath the Treaty establishing the Widespread Marketplace for Japanese and Southern Africa (COMESA).

The Fee’s core mandate is to implement the provisions of the Rules with regard to commerce between Member States and promote competitors inside the Widespread Market by way of monitoring and investigating anti-competitive practices of undertakings inside the Widespread Market and mediating disputes between Member States regarding anti-competitive conduct.

COMESA has indicated that abuse of dominance after mergers and acquisitions by corporations within the agriculture sector have impoverished farmers and led to excessive price of meals within the area.

In accordance with fee, large merchants typically suppress the worth to farmers as a result of they’re dominant. So even when the farmer chooses to not cope with them, the choice is wastage, and since they won’t get something, they’re compelled to promote at this suppressed value.

Through the eighth Enterprise Reporters Workshop and 2nd Annual Press convention held in Livingstone Zambia from nineteenth to twentieth August, Dr Mwemba stated that some corporations are colluding to get undue benefit within the agriculture sector.

“There’s a motive why corporations merge. One of many causes is mainly to reinforce efficiencies and synergies however typically the explanation may be to guarantee that they acquire a aggressive benefit by turning into dominant” famous Dr Mwemba.

“However within the quest to take action, typically corporations by the dominance that they purchase find yourself abusing it by way of making it very tough for different enterprise gamers, particularly within the agri-sector, to function in that market.”

The businesses are additionally making it very tough for the farmer, who’s crucial stakeholder within the agri-value chain, by giving them very low costs.

“Now you agree with me that if you’re giving a farmer very low costs what occurs is you make farming unattractive and when it turns into unattractive the produce retains on going low and low and also you exacerbate poverty,” stated Dr Mwemba.

It’s obligatory for COMESA to control the actions within the agri-sector, he added, underscoring the significance of the fee intervening in order that the markets work effectively for the advantage of the farmer, the buyer and that of the member states and the financial system at giant.

The COMESA Competitors Fee is working along with the Competitors Fee of South Africa and the Competitors Authority of Kenya.

They’ve been engaged within the Worldwide Competitors Community particular undertaking on meals the place these issues are being mentioned at world degree.

The Worldwide Competitors Community (INC), which entails nearly all competitors authorities on the earth that community. Has the target of pushing the meals and agriculture concern and its significance to be identified at world degree.