He explained that during the meeting there was a wide discussion about food products in supermarkets, adding that, according to his understanding, signs of a cartel are visible in Latvian supermarkets.
“We see that there are disproportionately high food prices,” he added.
Jurēvics explained that currently it is not yet clear what solutions will be used to reduce food prices, but “there is a common understanding that a real free market between supermarkets does not exist in Latvia, food prices are partly unjustified”.
Coalition partners agree on improving data availability to promote competition. Jurēvics pointed out that the openness of data is an important step in order to make the pricing policy fairer.
The Minister of Agriculture, Armands Krauze (ZZS), in turn, said that solutions will be worked on together with industry associations. “The population – food consumers – should benefit from the result,” added Krauze, emphasizing the importance of transparency in pricing.
Speaking about when some clear solutions could be reached, Jurēvics said that “there should be no delay in this matter”. He thinks that most of the decisions could be made during this year.
It was previously reported that the Ministry of Economy (ME) could prepare an offer for determining the maximum markup level of food prices by the end of this year.
The plan to limit food prices, initiated by the Minister of Economy Viktoras Valaiņš (ZZS), has several goals, including ensuring that Latvian residents do not have to pay for basic necessities. It is also planned to prevent different pricing attitudes between local and imported food products, as well as to balance the relations of food supply chain participants, so that producers do not have to sell goods at an inappropriately low price or even below cost.
These two solutions could be implemented in the near future, as the draft law is in the development stage, and it could be agreed upon for forwarding to the Cabinet of Ministers in November. At the same time, it is also planned to promote an increase in the share of local food products in sales outlets.
Interview between Time.news Editor and Jurēvics, Food Economics Expert
Time.news Editor: Good day, and welcome to our discussion on the rising food prices in Latvia. Today, we have the pleasure of speaking with Jurēvics, a recognized expert in food economics. Jurēvics, thank you for joining us.
Jurēvics: Thank you for having me. It’s great to be here.
Time.news Editor: Your recent insights on the potential signs of a cartel in Latvian supermarkets have caused quite a stir. Can you elaborate on what led you to that conclusion?
Jurēvics: Certainly. During a recent meeting, we engaged in an in-depth discussion about food products in supermarkets throughout Latvia. It’s evident that there are disproportionately high food prices, which raises red flags. When such pricing is consistent across various outlets without clear justification, that’s a hallmark of potential collusion among suppliers or retailers.
Time.news Editor: That’s alarming. You mentioned that there’s a common understanding that a true free market doesn’t exist in Latvia. What are the implications of that?
Jurēvics: The implications are significant. A lack of real competition means consumers face inflated prices without the benefit of market forces driving them down. The idea of a free market is one where competition leads to better prices and options for consumers. In this case, many food prices in Latvia could be labeled as “partially unjustified,” reflecting a market that isn’t operating effectively.
Time.news Editor: It sounds like there’s a critical need for change. Are there any proposed solutions on the table to address these high food prices?
Jurēvics: As of now, the solutions remain somewhat unclear. However, there’s emerging consensus among coalition partners about enhancing data availability. With better data, we can promote competition within the market, which is crucial for driving down prices. Access to transparent pricing information could empower consumers and encourage competitive pricing strategies among retailers.
Time.news Editor: That does sound promising. For the average consumer, what steps can they take while awaiting these policy changes?
Jurēvics: Consumers can become more informed shoppers. Being aware of price differences between supermarkets can help. Utilizing apps or websites that compare prices may also drive competition indirectly. Consumer activism—like voicing concerns about unfair pricing to local representatives—can put additional pressure on supermarkets to act more fairly.
Time.news Editor: It seems that consumer engagement could play a substantial role. Before we wrap up, what is your outlook for the future of food prices in Latvia if these issues are addressed?
Jurēvics: If we can improve competition and transparency in the market, I believe we could see a significant reduction in food prices over time. It will not happen overnight, but with concerted efforts from both consumers and policymakers, we can work toward a fairer food pricing structure in Latvia.
Time.news Editor: Thank you, Jurēvics, for your valuable insights on this important issue. We hope to see progress made soon for the benefit of all consumers.
Jurēvics: Thank you for having me. I look forward to seeing how this unfolds.