During the last two decades, supermarkets have assumed a dominant role in the sale of agricultural products, both in Serbia and throughout Europe and the world. In many countries, including Great Britain, Germany, France and others, supermarkets control the majority of the retail market, and a similar situation is observed in Serbia. At the moment, two-thirds of the market in Serbia is controlled by foreign retail chains, such as German “Lidl” and Belgian “Deleuze”, while domestic chains, such as “Univerexport”, “DIS” and “Gomex”, hold a smaller part of the market. .
The emergence of supermarkets has brought more problems than benefits for domestic agricultural producers. Research shows that hypermarkets generate only one to two percent of their turnover from local food producers, which has led to a decline in turnover in small, independent stores that relied on local farmers. Many of these small traders had to close their shops due to reduced traffic.
How supermarkets compare to green markets vis à vis homemade paori?
The situation in green markets is not much better. The state tried to introduce the fiscalization of sales at the stalls, but due to poor sales and market traders’ protests, that plan was temporarily suspended. The global trend of selling agricultural products in supermarkets has led to the creation of monopolies among traders and processors, with farmers bearing the brunt. Specifically, in the dairy industry, one processor controls almost 40 percent of the purchase and processing of milk in Serbia, while agricultural farms receive only about 30 percent of the selling price of milk in supermarkets.
Local food producers, including family farms, face constant pressure to lower prices, despite increased production costs. This problem has attracted the attention of the Ministry of Agriculture. We remind you that the Ministry recently launched an initiative for talks with leading trade chains in Serbia, such as Lidl and Deleza. The goal is to increase the purchase of domestic agricultural products, especially in the farming and livestock sector. This move would reduce dependence on food imports and provide support to domestic producers.
Although this initiative is promising, the question remains as to how successfully it will be implemented. After all, the big retail chains have strict quality standards that domestic producers must meet in order for their products to reach the shelves. However, there are also positive examples of cooperation, such as the long-term cooperation between the Zrenjanin chain “Gomeks” and the vegetable cooperative “Carska Bašta”. This cooperative delivers its products directly to “Gomeks” stores. At the same time, the payment is fast, which satisfies both producers and consumers who prefer domestic products.
Source: Farmer
Source: boljazemlja.com
