Georgia Commissioner of Agriculture Tyler Harper is calling for the U.S. Department of Justice and the Federal Trade Commission to conduct an antitrust investigation into the proposed acquisition of Restaurant Depot by Sysco Corporation.
In a letter sent earlier this week, Commissioner Harper highlighted that Sysco already controls nearly 20% of the food service market and that “This proposed acquisition will dramatically reshape America’s Food supply chain, making it more fragile and increasing costs on American restaurant owners and their customers.”
The letter also states that “This proposed merger is also part of a broader and more troubling trend of corporate consolidation in the agriculture industry and food supply chain. “Big Ag” continues to grow larger and more powerful, squeezing American farmers and limiting their options. Farmers have fewer places to sell their products, while restaurants and food business have fewer suppliers to choose from. The lack of competition creates higher prices and less economic opportunity across the board. Sysco’s acquisition of Restaurant Depot would only accelerate this trend. While Restaurant Depot is currently privately owned, Sysco’s largest shareholders are private equity firms including BlackRock and Vangaurd. America’s food supply chain is an essential part of our nation’s national security, not a profit center for private equity to “optimize.”
Audio Reporting by Dale Sandlin for Southeast AgNet.