Anna Mirochinenko: improving approaches to analyzing transactions on the genetic material markets are on the agenda

12-12-2016 | 14:32

Representatives of competition authorities, academia and agro-industry analyzed consolidation of the global seeds market

On 7 December 2016, at the II International Research-to-Practice Conference on “Antimonopoly Policy: Science, Practice, Education” representatives of the academic community, the agro-industrial sector, the Federal Antimonopoly Service (FAS Russia), competition authorities of Belarus, South Africa and Brazil discussed the state of theagro-genetics market at a sectoral section.

Currently two blocks of issues can be identified on the Russian seeds markets that are directly related to competition: high dependence on imports supplies on particular crops and underdeveloped own seeds industry (seeds breeding, production and treatment).

“The established seeds market structure has significant risks of breaching competition by market participants, which prospectively threatens development of the economy and national food security”, pointed out Head of FAS Department for Control over Chemical Industry and Agro-Industrial Complex, Anna Mirochinenko.

According to Ioannis Lianos, a professor of the Law School, London University College, there is an acute need of combining efforts of competition authorities in tracing and considering economic concentration transactions on the seeds markets, since in the near future a new wave of consolidation will happen and there is a probability that global seed supplies will be controlled by three companies.

In 2016 FAS approved two economic concentration transactions on the seeds market: “Dow Chemical” and “DuPont” (merger), “ChemChina” and “Syngenta” (acquisition). “Analyzing transactions, we applied traditional approaches that determine the boundaries of the market where the parties to the transactions operate, and their market shares. However, improving transaction analysis on the genetic material markets is on the agenda. The performance specifics of such markets and their impact upon global food markets should be taken into account, evaluate possible access restrictions for potential competitors to innovative products and technologies”, detailed Anna Mirochinenko. “Such efforts should be undertaken in close cooperation with competition authorities of other countries. Today cooperation with BRICS is essential for us”.

Roman Kulikov, Head of “Skolkovo” Agro-division, highlighted a number of proposals regarding economic concentration transactions that would bring positive changes to the state of competition in seed farming, breeding, biopesticides, precision crop management, and marketing.

The II International Research-to-Practice Conference on “Antimonopoly Policy: Science, Practice, Education” took place on 6-7 December 2016 in Moscow in “Skolkovo” Innovation Centre. On the first day the Conference determined the directions of developing the antimonopoly policy under the new economy; the event on the second day included sectoral discussions on: procurement, informational technologies, agro-industrial sector, and pharmaceuticals.



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