stores artificially inflate the cost of Latvian goods

SK studied prices for eggs, fish and meat, grain products and bread produced in Latvia. It turned out that on average they have a higher trade margin than goods produced outside Latvia.

For example, the markup on Latvian-produced doctor’s sausage was on average 16% higher than on imported sausage, and the markup on Latvian fresh chicken was 2.9 times higher than on imported sausage. At the same time, the differences in markups on imported and local eggs, meat and fish products are not so significant.

The Investigative Committee also found that purchasing prices for store-branded products—fresh pork, doctor’s sausage, fresh chicken, eggs, and fresh fish—produced to order by a retailer are significantly lower than purchasing prices for similar products under an independent brand.

There are often cases when a supplier produces goods with identical composition under the store’s brand and at the same time under its own brand.

The production costs for such goods are equal, but their purchase prices differ significantly.

The Investigative Committee also found that purchasers have the right to unilaterally amend contracts in the event of the supply of agricultural and food products of inadequate quality, when suppliers do not fulfill their obligations properly and cannot eliminate violations of the contract, as well as unilaterally change prices for marketing or marketing services.

The UK urges traders to carefully evaluate procurement forecast information provided to suppliers in order to avoid returning goods and thereby transfer risk to the supplier. Officials are also asking retailers not to abuse their rights or violate the Unfair Trade Practices Act.

Since the Investigative Committee’s message does not say anything regarding any punishments, everyone can only rely on the conscience of the retail chains. But what if?