Global commodity traders' influence raises alarms over rising food prices

A RECENT report from the BRICS Competition Law and Policy Centre has spotlighted growing concerns regarding the impact of dominant global commodity traders on food prices, particularly in the grain sector.

- YOGASHEN PILLAY

Released on Friday, this report sheds light on how a handful of companies control an overwhelming share of the global bulk grain trade, exacerbating issues of food affordability and availability worldwide.

In an interview with Business Report, Alexey Ivanov, director of the Centre and a Professor of Law at HSE University, discussed the alarming concentration of power in the hands of traders commonly referred to as the ABCD group-Archer Daniels Midland, Bunge, Cargill, and Louis Dreyfus-as well as significant emerging players such as COFCO, Wilmar, and Olam, collectively termed ABCD+.

Ivanov said this coalition now wields control over an astonishing 80% of the global bulk grain trade and have long moved beyond the traditional model of raw commodity suppliers.