Industry specialist
The Agriculture and Industry Division monitors some of the Dutch economy’s most critical industries: industry and agriculture. Industry includes all industrial companies, ranging from glass manufacturers to food processing companies. Prompted by several high-profile cartel cases before and in 2009, the NMa decided to increase oversight on the processing industry in 2010 and 2011.
Agriculture has a different dynamic. One of the agricultural industry’s characteristics is that it can experience big price fluctuations. Lively debates on prices are held in the industry, due to its economic position. One of the most talked about topics is margins – how they are set in the entire chain, from farmer to retailer.
Division manager
 | Name: Paul Benner
Phone: +31-70-330-1306
(NMa Information and Tip-Off Line,
Monday through Friday, between 9 a.m. and 5 p.m.)
Email: info@nma.nl |
Agriculture
‘The Dutch government enforces strict regulation on the agricultural industry. It is gradually moving towards a free-market system, but the process is not a smooth ride. The market is still largely driven by supply, rather than by demand. That is why we have mostly dealt with cases that involved supply reductions. However, the agricultural industry is undergoing profound changes, for example, companies that increase in scale.
As farmers, you may have your doubts about whether the Dutch Competition Act is really necessary for this industry. But oversight is really necessary, in part because foodstuffs are of such critical importance to society. If you are aware of any illegal agreements, it would be best to inform us about them. Please contact us by calling or sending an email to the NMa Information and Tip-Off Line, so we can do something about it.
Sustainable agriculture is increasingly getting more and more attention. Consumers and governments want less CO2 emissions and more attention to animal welfare. Such demands result in farmers facing higher costs, for example, due to investments. It is therefore understandable that they want to recover such investments through prices. Cooperation agreements with the objective to improve production or distribution may qualify for an exemption from the prohibition of cartels. But exemptions are only granted if consumers equally profit from the benefits. Agreements to collectively pass on certain costs to consumers, or quota agreements restrict competition, and harm consumers. That is why such agreements are prohibited. The NMa checks whether the cooperation agreement in question truly promotes sustainability or whether there are economic reasons to have the agreement. If you think there may be any illegitimate agreements, please let us know. You can do so by contacting the NMa Information and Tip-Off Line.’
Industry
In several submarkets of the industrial sector, only a few suppliers are active. In addition, companies often manufacture homogeneous products, of which flour is a good example. These aspects make those industries extremely cartel-prone, which is compounded by the fact that manufacturers in these markets are able to contact each other very easily. Sometimes it can be easily proven that cartels directly harm consumers, for example, with products such as flour. Cartels have a direct upward effect on bread prices. Do you know of any cartels, or would you like to submit a tip-off to us about something else? We would definitely like to hear from you! Please contact the NMa Information and Tip-Off Line.
Consumers are not the only ones that are harmed by cartels. Companies can be harmed just as much. For example, cartels may affect products that generate upward pressure on prices in other industries, products such as pigments or rubber. And this ultimately affects consumers in those industries as well. Have you encountered, directly or indirectly, such illegal agreements? Please let us know by contacting the NMa Information and Tip-Off Line.’
Examples
More information?
