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Multinational grocery retailers offer bad terms to regional producers, claims Alliance Non-Commercial partnership


16.02.2007
‘The multinational retail networks operating on the regional grocery market have very few precuts by local agricultural producers on their shelves,’ Alexei Podolyako, CEO of Alliance Non-Commercial partnership, said to UrBC.

‘This can be explained by the terms of delivery contracts that these multinationals offer: these terms are so unattractive that no regional producer would ever think it sensible to accept them. A producer is generally known to decide on whether to cooperate with a particular retail chain using economic criteria. If doing business with a particular grocery store is going to bring profit, producers will go for it, and otherwise, no foods will be supplied. The multinational networks have to learn to understand that local produce actually enjoys market demand,’ Mr. Podolyako said.

‘However, this produce is only going to appear on the shelves when the agricultural enterprises find it advantageous,’ he noted.
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