Fight for survival: Local producers suffer from trade pressure!

Fight for survival: Local producers suffer from trade pressure!

Österreich - An alarming report by the fairness office in the Ministry of Agriculture reveals the dramatic balance of power in the Austrian food trade. Over 800 complaints from producers who feel unfairly treated were registered in 2024. According to Agriculture Minister Norbert Tettschnig, this clearly shows how enormous the pressure under which small manufacturers are. The trading giants Spar, Rewe and Hofer in particular dominate the market and hold over 90 percent of the market shares. Many small farmers fear that they could disappear from the shelves of the supermarkets if they do not submit to the strict conditions of the big chains, such as Leadersnet .

unjust practices under the magnifying glass

A central accusation concerns the pricing policy of the retail chains. For example, a retail chain increased the price of a product for consumers by 30 percent, while the producer itself received two percent less. These injustices often go hand in hand with gag contracts that young companies push into the dependency of the dealers. According to the fairness office, many producers are also forced to take advantage of expensive external services, which ultimately leads to higher costs for consumers, as the Bauernzeitung reported.

Minister Totchnig wants the retail chains to find solutions. "We have to act continuously to prevent the use of power positions," he said. On the other hand, however, the trade association defends itself against the allegations. Managing Director Rainer wants to emphasize that the number of complaints in relation to the many conversations with suppliers is low. Nevertheless, you can see a positive trend towards more awareness of fairness within the value chain in the fairness office, which could improve the cooperation between producers and dealers.