Customers in the Czech Republic have been complaining for a long time about the prices for food in retail chains. However, they claim that it is not their fault, but that there is already such a market and they have to buy for a lot of money from suppliers, i.e. food producers and farmers.
He sold it all himself
However, the Agrarian Chamber of the Czech Republic has repeatedly drawn attention to the fact that such a thing is in no way true. Not only do domestic farmers sell to the chains at very low prices, but they often have trouble selling the entire crop, as the global chains can find a supplier on the other side of the planet who will sell them the goods for a few pennies cheaper.
This is exactly what happened to farmer Petr Kleček, who grows onions. Since last year, he had contracted decent sales to local retail chains. However, in mid-April, he learned that the supermarkets had found a cheaper supplier abroad, so they would rather buy from him.
By the way, this is definitely worth mentioning, as one chain like another tries to declare in their advertising campaigns how much they care about local suppliers. But the reality is completely different and is determined only by the business side of things, without any sentiment.
In the end, it turned out that Petr Klečka announced the sale of his onions from the yard. It must be said that she has approximately 250 tons at her disposal. However, as soon as he announced his intention, the door did not open for him. People are very interested. They want to support the local farmer and buy cheap supplies.
What are the actual prices?
He sells onions for 8 crowns per kilogram. This is the price at which he can be profitable and which he probably demanded from the retail chains that were not willing to pay him. Maybe it’s even a little higher, because this is how he works with sales by the kilo.
But how much do supermarkets sell onions for? Currently, it is approximately 30 crowns per kilogram. Various discount events take place regularly, when chains can boast of giving, for example, a 50% discount. Then you can have such an onion for, for example, CZK 17.90, etc.
Read also: There is a new retail chain in the Czech Republic. Czechs are celebrating. Prices are half, Kaufland and Lidl may close immediately
This is a beautiful way to see how Czech business works and how disadvantageous it is to customers. The standard price is four times what the farmer sells his crop for. And even at the promotional price, the store realizes a 100% margin.
Photo: Shutterstock
