Holes and knives

By: trademagazin Date: 2008. 09. 05. 08:00

Following the example of water melon producers, milk producing farmers also plan to hold demonstrations against retail chains. Furthermore, farmers from the animal husbandry sector are also expected to take similar action, after the showdown with black market ventures which account for an estimated 30 per cent of the market. According to experts, agricultural producers should join forces and improve co-operation in order to compete with imports successfully. At the moment, they are quite disorganised, only co-operating on an occasional basis. The conflict between Auchan and the Dairy Product Council is an example. A representative of Auchan has said that they have been unable to make contact with the Product Council for weeks, while a representative of the Product Council has said the same thing about Auchan. At the same time, Romanian farmers, hyper markets and the food processing sector signed an agreement about prices and promotional costs. In the future, retailers will not be able to force suppliers either directly or indirectly to make contributions to their marketing spending. Retailers will not be entitled to demand exclusivity or to compel suppliers to use the same price in other transactions as well. Listed products may only be discontinued after written notice being served in advance. We have seen an article on the web site of the association of retailers reflecting on the above development. According to the author, politicians are preparing to capitalise on protectionism and market intervention. Milk will be the next product involved. Milk processing businesses are also entitled to import milk and they frequently do so. Examples of prices also need to be treated with caution, as there are substantial differences in prices. Retail prices have risen by 12 percent within a year, like those of domestic suppliers which have also gone up by exactly 12 percent. Has anyone asked consumers what they think? The author of the article seems to have missed the point that even if domestic products are more expensive, they generate employment and local purchasing power.

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