Only 'piles of manure' can change the situation in stores - farmers 0 8

"My personal opinion is very simple — only 'piles of manure' can change the situation in retail. It was like that in Estonia once; they solved this issue, and the market there became orderly. And now in Latvia, the situation is such that the largest retail chains have no national affiliation, therefore, they have no motivation to support local producers. Why? They are not interested," said Lazdiņš.

He noted that the attitude of traders towards local products is extremely negative, and this year it has manifested itself particularly strongly. A number of vegetable producers did not receive contract extensions, contracts were terminated, and local products were replaced with products from Lithuania or other European Union countries.

As a positive signal, Lazdiņš assessed the fine imposed on "Maxima Latvija" by the Competition Council.

"This is good because it means that government institutions are monitoring what is happening in the retail sector. Of course, the court will sort out whether this fine is justified, but it is already positive that there is oversight over the industry. The analysis by the Competition Council also showed that markups in retail are much higher and are measured in two zeros. Meanwhile, the farmer and raw material producer get nothing from this. So, the difference settles somewhere else," explained Lazdiņš.

He also did not rule out that sanctions against large retail chains may continue.

"What I don't understand is why discussions with retail chains have been ongoing for almost two years, but there is no result. In fact, the result has become worse than before. I think that at some point changes will occur; the question is whether they will happen at the initiative of the farmers themselves or through government sanctions. Which path will be faster and more effective — we do not know," summarized Lazdiņš.

He added that the problem lies not only with the store owners' attitudes but also with the people who manage purchases in these chains because they do not work with the goal of promoting local products.

When asked if there are other supporters of his idea that "only piles of manure can change the situation," Lazdiņš replied: if it were organized, many would join.

"We have nothing to lose — if retail chains are throwing out local producers, then what else can we do? Probably, we will express our position. And this year in the vegetable sector, a lot of products remained in the field simply because the chains reduced purchases; prices were dictated at inadequately low levels. At such prices, the vegetable grower understands that it is not even profitable to approach the harvest — it is more profitable to leave it in the field than to harvest and try to sell it in the chains, as this will only bring losses. So, what do we have to lose further?" said Lazdiņš.

As previously reported, a memorandum on reducing food prices was signed in May. It was signed by the Minister of Economics, the Latvian Association of Food Traders, the Latvian Chamber of Commerce and Industry, the Latvian Central Union of Dairy Farmers, the Latvian Food Industry Federation, the Council of Cooperation of Agricultural Organizations, the "Farmers' Saeima" society, and other partners. The memorandum provides for the introduction of a basket of products at low prices, a price comparison tool, and assistance in increasing the share of local products in stores.