Grain producers across BRICS nations are losing an estimated $2.5 billion annually due to market concentration and price manipulation by global agribusiness giants, according to a new study unveiled at the 9th BRICS International Competition Conference last week.
The report, titled “From Farm to Futures: Competition, Financialisation and Digitalisation in Global Grain Value Chains”, was presented by the HSE BRICS Competition Law and Policy Centre.
It warned that dominant global grain traders – collectively known as the ABCD+ group (ADM, Bunge, Cargill, Louis Dreyfus Company, COFCO, Olam) – are leveraging vertical supply chains and digital platforms to suppress competition, inflate prices and undermine both producers and consumers in emerging economies.
Unlike traditional antitrust approaches that focus on horizontal competition, the study noted vertical dynamics – examining how control over logistics, infrastructure and financial data enables traders to extract disproportionate profits across the entire grain value chain.
Researchers highlighted the merger of Bunge and Viterra in Canada as a cautionary example, noting that the consolidation led to a 15 percent increase in grain transshipment costs in Vancouver, resulting in $412 million in annual losses for producers.
The report identifies three key trends exacerbating market distortions: financialisation of grain trading, information asymmetry through exclusive data access and “co-opetition” – where rival firms collaborate on infrastructure while maintaining competitive fronts.
Digital platforms such as Covantis and TRACT are cited as tools used by ABCD+ traders to coordinate activity and sideline regional competitors, often beyond the reach of BRICS antitrust regulators.
To counter these practices, the study called for coordinated action among BRICS competition authorities, including joint market inquiries and structural reforms.
Central to its recommendations is the establishment of a BRICS Grain Exchange – a unified platform aimed at enhancing price transparency, enabling fair hedging mechanisms and restoring balance in global grain trade.
The 9th BRICS International Competition Conference was held in Cape Town from 9-11 September.
Source:APA News