Georgia Agriculture Commissioner Tyler J Harper called on May 5 for the United States Department of Justice and the Federal Trade Commission to open an anti-trust investigation into Sysco’s proposed acquisition of Restaurant Depot. In a letter addressed to both agencies, Harper raised concerns about market consolidation, rising costs for consumers and restaurant operators, and the growing influence of private equity firms in the food supply chain.
Harper said that “this proposed acquisition will dramatically reshape America’s food supply chain, making it more fragile and increasing costs on American restaurant operators and their customers.” He added, “American consumers cannot absorb another price shock in our food supply chain.”
The commissioner described the merger as “part of a broader and more troubling trend of corporate consolidation in the agriculture industry and food supply chain… that continues to grow more powerful, squeezing American farmers and limiting their options.” He also highlighted data showing that four companies control large shares of key agricultural markets such as equipment manufacturing, meatpacking, fertilizer sales, agrichemicals, and seed genetics.
Harper further warned about private equity involvement in critical sectors. He noted that while Restaurant Depot was privately owned before the deal, Sysco is publicly traded with major shareholders including BlackRock and Vanguard. Harper cited concerns over private equity’s impact on Atlanta’s single-family home market as an example. “America’s food supply chain is an essential part of our nation’s national security; it is not a profit center for private equity firms to maximize,” Harper stated.
The Georgia Department of Agriculture oversees agricultural regulations across the state with its main facility located at 254 Washington Street S.W. in Atlanta. The department supports farmers by safeguarding the food supply and promoting local products within Georgia communities as well as globally—services provided throughout Georgia to benefit producers and consumers alike—according to the official website.
Harper concluded his letter by urging federal authorities to closely examine this acquisition: “In the spirit of [the Trump Administration’s] commitment [to a farmer-first agenda], I strongly urge the Department of Justice and Federal Trade Commission to closely examine this acquisition and take appropriate action to prevent further harmful consolidation in the food supply chain.”
The outcome of any potential investigation could have broad implications for competition within America’s agricultural sector.
