An agenda for regional competition enforcement in agrifood markets
- Mar 31, 2022
- 1 min read
In the eastern and southern African region, cross-border markets are not working effectively. This results in high food prices for consumers, and low prices to farmers. Yet, the region should be able to produce abundant food to meet the population’s needs. Instead, the region remains a net food importer and is increasingly vulnerable to extreme weather linked to climate change.
Preliminary data collected by the African Market Observatory (AMO) indicate concerns with current market outcomes: large excess margins are being made between producing and consumer areas, and prices change substantial over short periods of time. Reasons for these market outcomes include possible anti-competitive conduct and the exploitation of weather shocks by concentrated markets to drive up prices above reasonable levels.
This report published by CCRED, Assessing agriculture & food markets in Eastern and Southern Africa: an agenda for regional competition enforcement, calls for effective competition enforcement at the regional and national levels. Information, market intelligence and knowledge are the key ingredients for competition assessment. A market observatory can play an important role in building the knowledge base on cross-border markets for priority products.
