Greek consumers often pay nearly triple the price that producers receive for fruits and vegetables at harvest. Producers typically retain a profit of only around 8 to 9 percent of the final consumer price. The disparity is largely attributed to intermediaries in the supply chain and exploitation by contractors overseeing farm labor crews rather than the producers themselves.
For instance, the cost of producing a kilogram of iceberg lettuce in Greece is €0.50, with transportation and packaging adding €0.20. The producer sells it to the wholesaler for €0.90, making a profit of €0.20. The wholesaler sells it to the retailer for €1.25, earning a margin of €0.35. The retailer sells it for €2.09 before VAT, making a profit of €0.84. The consumer ends up paying approximately €2.36-2.40 per kg.
Producers often fall victim to unfair agreements with contractors and packaging facilities and practices such as overcharging for wastage. A potential solution could be the establishment of cooperatives with their own packing plants, supplying retail trade directly. Another proposal is the establishment of auctions, where producers could negotiate directly with buyers on product prices. Greece also lacks local logistics centers, leading to unnecessary transport costs for products.
Source: www.ekathimerini.com