Brussels, July 10 - The European Commission raided agribusiness giants Cargill Inc and Bunge Ltd on Thursday in a sweep of traders and distributors of cereals and other agricultural products for human consumption and animal feed in two EU countries.
The raids come at a time when grain prices have soared to record highs amid strong demand, production problems and the use of grain to produce biofuels that have lifted food prices.
"The Commission has reason to believe that the companies concerned may have violated (EU) ... rules on cartels and restrictive business practices," it said in a statement. It did not identify the countries, traders or companies involved.
The raids were conducted Thursday in cooperation with national competition agencies, it said.
Minneapolis-based Cargill and Bunge, headquartered in White Plains, New York, confirmed that their offices in Italy were raided and they were cooperating with EU officials.
Archer Daniels Midland Co, based in Decatur, Illinois, said its offices were not involved in the raids.
The Commission, the European Union's executive arm, said its raids were part of an investigation and no judgement had been made on whether the companies were guilty of fixing prices.
"Surprise inspections are a preliminary step in investigations into suspected cartels," the statement said.
"The fact that the European Commission carries out such inspections does not mean that the companies are guilty of anti-competitive behaviour; nor does it prejudge the outcome of the investigation itself."
Companies judged to have participated in a cartel can face substantial fines by the EU executive of up to 10 percent of annual turnover. For large corporations, fines have never come close to that cap.
There is no time limit for the Commission to investigate.