Banana Value Chains in Europe & The Consequences of Unfair Trading Practices
Food sales in modern retailing (hypermarkets, supermarkets and discounters) are increasingly concentrated. In 2014, the ten biggest retailers in Europe accounted for almost 50% of modern retail food sales.
Competition authorities in several member states have begun to question the impact that the market power of supermarkets has on their suppliers, led by the UK, which has created a Groceries Code Adjudicator to regulate the relationship between supermarkets and their suppliers within the United Kingdom.
Up to 90% of fresh fruits and vegetables are sold through modern retailers in Europe. Bananas are a key consumer good for setting the price image of retailers and attracting consumers, creating fierce price competition between retailers. As a result, the average consumer price of bananas in Europe, the main fresh fruit imported from outside Europe, is 25% lower than that of apples, the most consumed local fruit.
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