Romanian products in Romania’s hypermarkets
The Romanian hypermarkets will have to sell at least 51% Romanian products by means of a “short supply chain
Mihai Pelin, 22.04.2016, 13:22
The Romanian Parliament is debating a draft law that obliges the big hypermarket chains in Romania to trade at least 51% Romanian products. Recently, the draft has been approved by an expert parliamentary committee.
Authorities and producers alike believe that, in this way, they will manage to encourage the domestic economy by promoting Romanian products. The agriculture minister, Achim Irimescu, says that, once enforced, the law will open the small producers’ path to hypermarkets, given that so far they have not had access to hypermarkets.
Achim Irimescu: “There have been accusations that the Romanian hypermarkets sell too many products imported from other states and that the Romanian products, some of best quality, never reach hypermarket shelves. I am not trying to take sides, but it is obvious that a correct contractual relation will benefit all sides, including the consumer. As regards Romanian products, I hope the Romanian consumers will understand the importance of consuming Romanian products.”
In turn, the president of the Association of Vegetable Growers, Vlad Gheorghe, has said that the law will clarify the relationship between local producers and the representatives of the big supermarket chains. In his opinion, the Romanian producers can supply, in season, the entire amount of products for sale, while out of season they can provide 51% of the products.
Vlad Gheorghe: “We have defined the concept of Romanian product and we are keen on this law being approved. As to supplying 51% of Romanian products, I can guarantee that, in season, we can provide the hypermarkets with 100% Romanian products. Now it is the season of lettuce, radish and scallion and supermarkets, after picking several scores of producers, claim we cannot provide the entire amount of products they need. That is wrong. The law is intended to help producers’ associations to be able to supply their products in an organized manner”.
According to the draft law, traders, which are legal entities, have the obligation to buy eggs, meat, fruit, vegetables, honey, dairy products and breadstuffs by means of the “short supply chain”. Exceptions to the rule are those traders with a business turnout of up to 2 million euros. “The short supply chain” is a chain that involves a limited number of companies involved in activities of economic cooperation and development at local and regional levels, as well as close relations between producers, processing companies and traders. If the draft law is voted by the Chamber of Deputies next week and then promulgated by the president Klaus Iohannis, the law will be enforced in autumn.
