Germany investigates price fixing potatoes | RetailDetail

Germany investigates price fixing potatoes

Germany investigates price fixing potatoes

The German government is investigating allegations of years of price fixing on the market of potatoes and onions. The Bundeskartellamt has already performed a house search at nine businesses, while five other companies are also under investigation. Damages for consumers could surpass a billion euro.

Fraud damaging farmers and consumers?

The government service suspects that a central person called several suppliers of onions and potatoes when making big orders for supermarkets, to agree upon a price, from which only slight deviations were possible. In 80 to 90 percent of the time the system is said to have worked. According to German press releases retailers could multiply their profits tenfold.

 

According to newspaper Süddeutschen Zeitung companies could have earned up to 100 million euro extra in ten years from working this way. Competitor Bild Zeitung mentions fraud worth a billion dollar over ten years’ time. The practice was not limited to onions and potatoes ready for consumption, but was also used for seed potatoes. This way also farmers got lifted.

 

There are however also some observers who have doubts: the prices for potatoes in German stores are situated in the lower or the middle parts of the European spectrum. Consuming 60 kg per person each year, Germans are quite the potato eaters.

Questions or comments? Please feel free to contact the editors


Adidas wants to strengthen bond with small retailers

15/07/2018

German sportswear giant Adidas says it wants to strengthen its bond with small-scale retailers after they claimed Adidas is too aggressive in pushing its web shop, especially as they feel the brand is favouring large international chains as well.

Several candidates to take over Men at Work

12/07/2018

There are several takeover candidates for both the Dutch and the Belgian stores of the bankrupt clothing chain Men at work. The curator is confident an agreement should be reached today in Belgium.

Burberry sales increases thanks to new strategy

11/07/2018

The new strategy of the British fashion brand Burberry starts to render: the company had a 3% increase of revenue in their own stores last quarter. In total, Burberry has now a revenue of 479 million pounds (520 million euros).

FNG moves to Brussels stock exchange

06/07/2018

Belgian fashion group FNG has collected 60 million euros by issuing new shares. The new shares will be traded on the Amsterdam Stock Exchange and - for the first time - on the Brussels Stock Exchange as well.

Athleteshop ends its run

02/07/2018

Dutch sports web shop Athleteshop has filed for bankruptcy, after an abysmal year in which strings of complaints led to all sorts of problems. Social media and review sites were flooded with customers complaining about late deliveries.

Alibaba goes Turkish with stake in Trendyol

29/06/2018

Alibaba is the new strategic partner of Trendyol, one of the best-known e-commerce companies in Turkey. With this partnership, the Chinese retailgroup strengthens its presence in Europe.