Minister: Farmers don’t receive fair share of retail price (1)
According to Minister of Rural Affairs Urmas Kruuse (Reform), the situation on the Estonian retail market is such that farmers are not getting a large enough share of the final price of products. The Ministry of Rural Affairs has made a proposal to the government to discuss and study the spread of unfair trade practices in Estonia.
"Today we are in a situation where farmers do not get enough of the final price," Kruuse told BNS. He added that in many cases the problem might be that farmers don't have enough leverage to stand up for what they are entitled to. "If farmers do not get a fair price, there is no support that would help them," the minister said.
Kruuse stressed that the ministry did not wish to intervene in the free market, but wanted to raise the question whether contracts with farmers were always fair. "Are the agreements really concluded between two equal parties, or are they made from a position of power, especially with regard to contract penalties and transport conditions?”, Kruuse asked.
To describe, map and study the situation, the ministry has drawn up a memorandum to discuss the issues in the government, the minister said.