Food prices, the survival of local producers, and the influence of large retail chains have long been in the public spotlight. Discussions in the Saeima's Committee on Economics, Agriculture, Environment, and Regional Policy show: solutions are being sought, but real changes are still far off.
What Has Been Done
At the meeting, the implementation of the memorandum on food trade was assessed, and amendments from the Ministry of Economics to the law on the prohibition of unfair trading practices were discussed. Both directions aim to strengthen the positions of local producers.
The memorandum, signed in May 2025, provided for:
- the introduction of a basket of cheap products,
- the creation of a price comparison tool,
- an increase in the share of local goods in stores.
Some measures have already been implemented:
- the basket is available in approximately 92% of retail outlets,
- the price comparison tool increases transparency for consumers.
But problems remain.
Data shows that the share of local products in this basket averages around 50%, and sometimes even lower. This means that even in initiatives aimed at supporting local producers, Latvian products are insufficiently represented.
The question arises: are voluntary agreements enough?
Pressure from Retail Chains
Discussions in the Saeima also highlighted the issue of the influence of large retail chains. Local producers often find themselves at a disadvantage in negotiations and have limited ability to influence:
- the assortment,
- supply forecasts,
- decisions on the removal of products from shelves.
Therefore, the proposed amendments are important:
- a ban on unilateral changes to contracts,
- an obligation to notify about the exclusion of a product 30 days in advance,
- a clear definition of supply forecasts and responsibilities.
Support for Local Producers
The Ministry of Agriculture has developed a plan to increase the share of local products, including:
- support for cooperation,
- investments in processing,
- development of short supply chains,
- participation in public procurement.
However, without political will and readiness to make difficult decisions, progress will be slow.
There is even discussion about the possibility of stricter trade regulations, for example:
- limiting the operation of supermarkets on weekends,
- to support markets and small shops in the regions.
Why It Matters
Local products are not only about the economy but also about:
- food security,
- regional development,
- public health.
New Measure
Starting in July this year, a reduced VAT rate of 12% will be introduced as part of a pilot project on:
- bread,
- fresh milk,
- chilled poultry meat,
- eggs.
It is expected that the tax reduction will directly reflect on final prices in stores.
👉 Conclusion: good intentions alone are not enough — concrete and consistent actions are needed for local products to gain stronger positions in the market.
