ATLANTA, GA – Today, Georgia Agriculture Commissioner Tyler J Harper is calling for the United States Department of Justice and the Federal Trade Commission to launch an anti-trust investigation into Sysco’s acquisition of Restaurant Depot. Harper’s letter cites significant concerns over Sysco’s growing market share, increasing consolidation in America’s food supply chain, rising costs for American consumers, and the involvement of private equity firms.
“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,” said Harper. “American consumers cannot absorb another price shock in our food supply chain.”
Harper continued, calling the merger “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.”
Decades of mergers have in agriculture and the food supply chain are increasing costs on farmers and consumers alike. The four largest US equipment manufacturers control 51% of the market. The four largest US Meatpackers control 85% of the market. In the fertilizer market, seven retailers control 70% of crop input sales and services. Four companies control 62% of the global agrichemical market. Just two companies control 90% of trait acres for American corn, soybean, and cotton seed genetics.
Harper also raised concerns over private equity’s involvement in the merger. Highlighting the fact that while Restaurant Depot had private ownership, Sysco is a publicly traded firm whose largest shareholders include BlackRock and Vanguard, and citing the disastrous of impact of private equity’s takeover of Atlanta’s single family home market.
“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.
Read the full letter here and below:
United States Department of Justice
Antitrust Division
950 Pennsylvania Avenue NW6
Washington, DC 20530
Federal Trade Commissioner
Bureau of Competition
600 Pennsylvania Avenue NW
Washington, DC 20530
Re: Anti-Trust Concerns Related to the Proposed Acquisition of Restaurant Depot by Sysco
Honorable Members of the Antitrust Division & Bureau of Competition,
As Georgia’s 17th Commissioner of Agriculture and a 7th generation Georgia farmer, I write to urgently ask the Department of Justice and the Federal Trade Commission to launch an antitrust investigation into Sysco Corporation’s proposed acquisition of Restaurant Depot. Sysco, the largest food distributor in America, already controls nearly 20% of the food service market. This proposed acquisition will dramatically reshape America’s food supply chain, making it more fragile and increasing costs on American restaurant owners and their customers.
While inflation has cooled and real wage growth has increased measurably under President Trump, Americans are still feeling the lasting effect of record inflation from the previous administration as well as increased volatility in the marketplace due to the conflict in Iran. American consumers cannot absorb another price shock in the food supply chain.
This proposed merger is also part of a broader and more troubling trend of corporate consolidation in the agriculture industry and food supply chain. “Big Ag” continues to grow larger and more powerful, squeezing American farmers and limiting their options. Farmers have fewer places to sell their products, while restaurants and food businesses have fewer suppliers to choose from. The lack of competition creates higher prices and less economic opportunity across the board.
Sysco’s acquisition of Restaurant Depot would only accelerate this trend. While Restaurant Depot is currently privately owned, Sysco’s largest shareholders are private equity firms including BlackRock and Vanguard. America’s food supply chain is an essential part of our nation’s national security, not a profit center for private equity to “optimize.”
Equally concerning, private equity has consistently inserted itself into critical sectors of the American economy, often prioritizing profits over long-term stability. In fact, in my home state, thousands of Georgia families have had their dreams of home ownership deferred or delayed because they are being forced to compete with firms like BlackRock to purchase single family homes. That is unacceptable.
The Trump Administration has made it clear its commitment to a farmer-first agenda. In the spirit of that commitment, I strongly urge the Department of Justice and the Federal Trade Commission to closely examine this acquisition and take appropriate action to prevent further harmful consolidation in the food supply chain.
Thank you for your consideration,
Tyler J Harper
Commissioner of Agriculture