Grain producers across BRICS nations are losing an estimated $2.5 billion every year due to market concentration and price manipulation by dominant global agribusiness corporations, according to a new report presented at the 9th BRICS International Competition Conference in Cape Town.
The study, titled “From Farm to Futures: Competition, Financialisation and Digitalisation in Global Grain Value Chains”, was unveiled by the HSE BRICS Competition Law and Policy Centre. It highlights how multinational trading houses – collectively known as the ABCD+ group (ADM, Bunge, Cargill, Louis Dreyfus Company, COFCO, and Olam) – leverage vertical integration and digital platforms to distort markets.
Researchers warned that these traders use control over logistics, infrastructure, and financial data to extract excessive profits while undermining both producers and consumers in emerging economies.
“The current grain trade system is not just concentrated, it is structurally unbalanced,” the report stated, calling for urgent intervention.
The study pointed to the Bunge–Viterra merger in Canada as a key example, noting that consolidation raised grain transshipment costs in Vancouver by 15 percent, inflicting $412 million in annual losses on farmers.
Three accelerating trends were identified:
-
Financialisation of grain trading, enabling speculative pricing.
-
Information asymmetry, with exclusive access to digital data.
-
“Co-opetition”, where rivals cooperate on infrastructure while competing in markets.
Digital platforms such as Covantis and TRACT were cited as coordination tools used by ABCD+ firms, often escaping the scrutiny of BRICS antitrust authorities.
As a solution, the report recommends stronger cooperation among BRICS regulators, joint market inquiries, and the creation of a BRICS Grain Exchange to enhance transparency, ensure fair pricing, and reduce dependency on global agribusiness giants.
