“A kilo of apples is sold by producers for 0.60 euros per kilo and reaches supermarkets for 1.80 euros, i.e. three times the price. The biggest profit undoubtedly goes to the middlemen. Of the 0.60 euros that the producer receives, at least 0.40 euros are related to production costs. The remaining 1.20 euros is shared by intermediaries and retailers. Essentially, the intermediary sells the product at around 1.10-1.20 euros per kilo and the supermarket at 1.80. However, retail also has losses, as some products will spoil, some will not be bought at all, and of course operating costs. While the middleman will be paid in full for the quantities he will procure from the producers”, he says to “ET”. representative of a large agricultural cooperative.
As market executives explain, in order for a product to get from the field to the shelf, other people intervene. “Usually supermarkets work with large traders or importers who assemble the products. It is usually a large merchant of the Central Vegetable Market. He has a person who is in contact with the producer and the distributor who sends them to him”, they say to “ET”.
In addition, there are intermediate stages in the supply chain that push prices up, such as sorting, packaging, transport, but also the quantity of products that finally reach the household basket. “Let’s take tomatoes for example. Traders buy them from the producers, but do not deliver them directly to the supermarkets, because consumers will distinguish them, depending on the color, whether they are beaten, etc.
So initially they go to the polls, where the scrapping takes place. Which ones are good enough to go to supermarkets, which ones are meant for tomato juice and which ones will be thrown away. After the sorting is done, the packaging follows so that they can be placed in special crates or if they need any special packaging. Then, they go to the warehouses, which in addition to the energy costs for cooling, are also the high rents of these spaces. And, finally, it’s the transportation cost to get them to the stores,” he emphasizes to “ET.” the same source.
Export company from the ETHEAS
In this context and in order to “side out” the middlemen who inflate the prices, the National Association of Agricultural Cooperatives (ETHEAS) is preparing to set up an export company that will directly market the products both in foreign markets and domestically. “If cooperatives are organized properly, they can create a platform where the retailer will come in and directly order the products they want. In this way, the price of agricultural products can be reduced by up to 50%. Thus, the retailer will also benefit, since he will buy cheaper, and so will the consumer”, he notes to “ET”. the vice president of ETHEAS, Christos Giannakakis.
He points out that so far 33 cooperatives participate as shareholders in the export company under establishment. “This company will undertake to gather large quantities of fruit and vegetables both from the shareholder cooperatives and by signing contracts with third parties so that it can channel them to the market. For example, a chain will be able to enter the platform and indicate what quantities it wants of each product and to which store they should be shipped. The process will be much simpler and the cost much lower,” adds Mr. Giannakakis.
However, products such as legumes, olive oil, honey, etc. they can buy them directly from the producers paying up to 50% less money. For example, there is the Facebook page “Innovative Greek Producers and Consumers”, like an online public market, which has more than 300,000 members, and those who wish can directly buy the products they want at much lower prices than those on the market. Finally, in various cities, “people’s markets without intermediaries” are set up from time to time, where producers sell their products directly to consumers.
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