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Friday 23.02.2018 | Name days: Haralds, Almants
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Dealing only with stores would kill dairies

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Supermarkets keep manipulating with suppliers, moreover traders statements on small profit, compared to producers income are populistic, says Latvian Dairy Producers’ Central Union’s Board Chairman Jānis Solks.

Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RU, Janis Solks

Janis Solks

If we were obliged to work only with stores without no options to export, it most cases it would «kill» dairy farmers, Sols told in nozare.lv organized discussion, when commenting upon SIA Rimi Latvija Board Chairman Valdis Turlais statement that producers made up to 7%, while traders profit amounted only to 1.9%.

Supermarkets have many ways to manipulate with the suppliers and this has nothing to do with the milk procurement price fluctuations, which is a normal process. Chain stores should consider whether there are economic reasons to change any kind of discounts, logistics services. If milk price surges, I do not see why the the retail sector boosts certain payments regarding suppliers, Solks explains.

While SIA Maxima representative Ivars Andiņš points out discounts stipulated in traders and producers contacts is a chance for people to shop cheaper. A discount comprises only one aspect of the price formulation. In discussions with producers we do, of course, try to reach a lower price, which is in the interests of consumers. If all producers wishes were taken into account, the prices would be much higher, Andins says.

The Latvian Federation of Food Enterprises Head Uldis Ronis explains several organizations members and huge companies form a part of international groups and their turnover indicators show a very good performance, unfortunately Latvian supermarktes surcharges is a rather expensive channel we are forced to take due to the current market power, he says.

While the Competition Council Head Ieva Jaunzeme points at the fact the final product price is calculated at an early stage of a contract conclusion.


Leave a reply

  1. joy says:

    That’s good no one can forbid to export, but we can expect everything from the government.

    Thumb up 0 Thumb down 0

  2. Gunnar says:

    Seems that recently dairy producers are not doing so great as few years ago.

    Thumb up 0 Thumb down 0

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