Expert testimony on grain futures; joint venture

In a high-profile prohibited practice case in the grain storage and trading markets, Genesis was commissioned to provide testimony and an expert economic report on pleaded complaints of alleged price discrimination and exclusionary conduct.

The project team assessed the conduct of one of the largest grain storage companies in South Africa, Senwes, in the relevant markets. This analysis involved not only clearly articulating intricate competition concepts, but also providing the Competition Tribunal with a clear understanding of the complex world of grain futures markets.

The testimony and report withstood the scrutiny of the both the Competition Commission and the tribunal.

An adverse ruling made on a separate and unpleaded complaint was made by the tribunal.This was subsequently overturned by the Supreme Court of Appeal, but ultimately upheld by the Constitutional Court.

In 2011 Genesis was commissioned to provide economic advice and an expert report for a proposed grain and oilseed trading joint venture between Senwes and Bunge, a leading global agribusiness and food company.

The aim of the joint venture was to develop grain and oilseed operations in South Africa in order to increase imports and exports of grain and oilseeds to and from the country, and so to enhance efficiencies in local and regional markets.

The transaction was approved with the provision that Senwes provide storage and handling services to all customers on the same terms as those provided to the parties to the joint venture.