German supermarket chain wants to buy Spanish oranges below cost

Throughout fruit and vegetable campaigns, supermarket chains prepare their commercial strategies for the following weeks, offering purchase prices to candidate suppliers for certain quantities of products within given periods; however, a German supermarket chain with stores across Europe (also in Spain), and a leader in that country, has been offering below cost prices to various Valencian cooperatives and other exporting firms, doing so on an "at a loss" regime, which is banned by the law of the agri-food chain.

Specifically, the German retailer has tried to buy oranges at a rate of 0.45 Euro per kilo within two weeks.

This is a situation that breaks the law, but the supermarket chain has found a way to formally avoid it. The purchase and supply contracts include clauses that claim (because it is signed) that the selling party in each case is selling "for prices above costs", which is not true. Still, no one is stopping it.

 

Source: lasprovincias.es


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