At the request of the Minister of Agriculture, the Competition Authority investigated price formation for certain types of imported vegetables in March. The investigation covered the period from 1-15 March and, subsequently, the period from 16-31 March, after a tariff was imposed.
The import price of the vegetables.
For the study, information was sought from the three main vegetable importers and 10 shops and retail chains.
The Competition Authority emphasises the following when the results of the investigation are
respected:
- The purchase price of imported vegetables is determined by the price on foreign auction markets.
- In the short term, the purchase price can fluctuate significantly.
- It is common for importers to buy the same types of vegetables from more than one country of origin.
- Vegetables are transported to the country by either ship or aeroplane. This can have a significant impact on the price.
- Due to different definitions of cost and mark-up by importers, it is likely that the mark-up of import companies is not entirely comparable.
- Retail mark-up is intended to cover cost items such as the shop's wastage, which is relatively high on fresh vegetables. Information from shops suggests that wastage can be 10-15% of the purchase price.
- As the study covers a short period, it is not possible to conclude that it provides a general overview of the price formation of imported vegetables.
Press release in PDF format (PDF document – Opens in a new window).
