The agro-processing industries cover economic activity from production of the agricultural products through various stage of processing to final consumer products. It includes production of food products as well as forestry and timber. These industries are particularly important because of the value adding activities and employment involved as well as the fact that they produce essential products bought by all consumers, including the poor.

While South African agriculture is among the most liberalised internationally, high levels of concentration are found in the trading, storage and processing of grain (wheat and maize) with three to four firms dominating silo storage, trading, and processing (milling and baking of bread). The high levels of concentration have been associated with anti-competitive behaviour with negative implications for the economy and for consumers. A number of investigations are underway and/or have been completed into anti-competitive behaviour in relation to silo storage, bread, and dairy products. There are similarly a number of complaints under investigation in the forestry and sawmilling sectors.