NATIONAL ASSEMBLY
WRITTEN REPLY
QUESTION 1073
DATE OF PUBLICATION: MONDAY 25 MARCH 2011 [IQP No 9-2011] SECOND SESSION,
FOURTH PARLIAMENT
Question 1073 for Written Reply, National Assembly: Ms D Carter (COPE) to
ask the Minister for Agriculture, Forestry and Fisheries:
Whether her department has any measures in place to ensure that major
transnational and national corporations are not involved at each stage of
agricultural production to prevent their domination of the market through a
combination of horizontal and vertical integration; if not, why not; if so,
what are the relevant details? NW1195E
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REPLY:
Matters relating to domination of the markets are regulated by the
Competition Commission in terms of the Competition Act (Act No. 89 of
1998). For DAFF to put in place any measures to combat either vertical or
horizontal integration will be duplication of duties of the Competition
Commission which is the only legally mandated institution to perform these
functions. DAFF and other organs of state are only allowed, in terms of
section 20 (3) of the Act, to assist the Commission to carry out its powers
and duties.
In short, DAFF does not have any systems/measures to prevent/limit major
corporationsâ involvement at different stages of agricultural value chain
as we believe that the Competition Commission is doing a good job in
dealing with anti-competitive behaviour in the markets. DAFF also does not
have any legal basis to deal with such issues. However, the Department
provides regular support to the Commission when required, including
assisting the Commission in drafting of Terms of Reference for
investigations as well as provision of information or data about the
industries.