Bread scam

The outcome of the Competition Commission's report on collusion in the bread and milling industry did not come as a surprise, Grain SA said yesterday.

The outcome of the Competition Commission's report on collusion in the bread and milling industry did not come as a surprise, Grain SA said yesterday.

Chairman Neels Ferreira said this amounted to a blatant exploitation of the wheat value chain.

"Grain SA welcomes the enforcement of recognised mechanisms in order to bring to light uncompetitive business practices, as well as the continuation of applicable legal processes."

Ferreira said the bread and milling industries were placed in a strong competitive position due to the structure of the wheat industry since the deregulation of the wheat market in 1997.

"The four major role-players control more than 90 percent of the wheat milling activities and a significant percentage of South Africa's bread baking activities," he said. - Sapa

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