Restrictions on Unfair Trading Practices in Chain Markets

The Competition Authority resolved to regulate measures for unfair commercial practices in the fresh fruit and vegetable sector as a result of its studies, in order to limit the buying power of chain markets.

The Competition Authority noted that they have completed their work called "Fresh Vegetables and Fruits Sector Investigation Report" after the sector analysis in the field of agricultural products. As a result of the report, fresh vegetables and fruits are transferred to the consumers through intermediaries such as collectors, brokers and traders, by changing hands in large numbers. The fact that the organization of the producers in fresh fruits and vegetables is not at the desired level, causes the marketing channel to be extended and the amount received by the producer from the money paid by the consumer decreases. While the increase or decrease in end product wages has a direct impact on production the next year, a shortage or surplus of production emerges. One of the most prominent causes of price volatility in agricultural products is this condition. Agricultural products are also affected due to factors such as climate, weather conditions, drought, disease and geography. The fact that fresh fruits and vegetables are perishable products, insufficient storage facilities and short shelf life also cause price volatility. While the marketing of these products are done by the private sector in Turkey, brokers, traders and retailers usually take charge in the marketing channel from the producer to the consumer. In the published report, an agricultural sales cooperative operating independently can compete with local intermediaries, eliminate some intermediaries and provide some technical advantages to its members, but to compete with large traders and industrialists who manufacture or export some products, regional associations and nationwide It was suggested that they form a central union. In addition, it was noted that since the market shares and buyer power of enterprises operating in the field of consumer goods retailing have increased significantly, regulations should be made in order to prevent abuse of buying power.