Antitrust concerns rise over Sysco deal + rail giants renew merger push

A news briefing from Farm Action’s policy team

Sysco acquisition draws scrutiny over food supply chain consolidation

What happened: Georgia Agriculture Commissioner Tyler Harper is urging federal antitrust regulators to investigate Sysco’s proposed acquisition of Jetro Restaurant Depot, warning it reflects a broader trend of “corporate consolidation in the agriculture industry and food supply chain.” In a letter to the DOJ and FTC, Harper noted that Sysco already controls nearly 20% of the food service market and argued the deal could further concentrate power.

Source: Agri-Pulse, Letter

Why it matters: The call for an antitrust investigation is notable coming from a state agriculture commissioner. This merger would not just impact downstream food businesses, but would also adversely affect the markets farms sell into. Sysco already controls 20% of the food service market. This merger would eliminate a major competition check, positioning Sysco to exert even greater influence over pricing, supplier terms, and market access.