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Today, Director of the Estonian Institute of Economic Research Peeter Raudsepp gave the Rural Affairs Committee of the Riigikogu (Parliament of Estonia) an overview of the distribution of food prices in the supply chain and its changes in 2022–2024. The results cause concern to the Committee.

In the food prices, the share of traders has increased the most and the share of primary producers has fallen. Chairman of the Rural Affairs Committee Urmas Kruuse thinks that the supermarket chains have a great power to put pressure on prices, because they have the consumer in their hands. “If trade’s share in the price distribution in the supply chain remains so high for a long time, the investments of industries and farmers will come under pressure and it will be difficult to stay in competition, which could lead to a further decline in the share of Estonian food in shops,” he explained.

Kruuse pointed out that the food producers are constantly increasing their efficiency, while at the same time the trade sector is busy expanding and staying open 24/7. “This raises the question who pays for all this – it seems inevitable that in the end it will be felt by the consumer in their grocery shopping cart,” he added.

Director of the Estonian Institute of Economic Research Peeter Raudsepp and Head of the Agricultural Policy Department of the Ministry of Regional Affairs and Agriculture Kristel Maidre participated in the sitting of the Rural Affairs Committee.

Riigikogu Press Service
Eleen Lindmaa
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