Translated using ChatGPT service.
To promote the availability of basic food products, increase the share of local products, and strengthen cooperation between retailers and producers, a memorandum on food product trade was signed on Tuesday, May 27, at the Ministry of Economics.
This agreement is an important step toward a balanced food pricing policy based on cooperation rather than regulatory measures. The memorandum was developed in close collaboration with industry representatives and outlines concrete actions to ensure the availability of basic food products, especially for households with lower incomes, as well as to strengthen the presence of local products on store shelves.
“Latvian residents must be able to buy everyday essential food products at affordable prices. Reducing food prices cannot be solved by government regulation alone – it requires mutual understanding and action across the entire industry. This memorandum confirms that the food sector is ready to cooperate and act in the public interest,” emphasized Minister of Economics Viktors Valainis.
Key initiatives of the memorandum:
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Low-price basket: Retailers commit to offering at least one product with the lowest price in each food category. Ten categories of basic food products have been defined. These products will be regularly rotated to provide nutrient-rich food at affordable prices.
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Digital price comparison tool: The use of price comparison tools will be promoted, allowing consumers to easily compare food prices across stores. Amendments to the Consumer Rights Protection Law have already been prepared to facilitate data sharing for this tool’s operation.
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Promotion of local product sales: Marketing campaigns will be planned to popularize food products made in Latvia. Closer cooperation between farmers, producers, and retailers will also be promoted to increase the volume of local products sold.
“It is very welcome that organizations together with the Ministries of Economics and Agriculture are signing such a memorandum. I see two major benefits: First, it will increase the availability of Latvian products in stores — their share will grow and they will actually be more present on shelves and accessible to buyers. Second, this memorandum helps reduce the dominant position of supermarkets by creating fair and equal conditions for all market participants — farmers, processors, and retailers. It also ensures that Latvian products are not subject to higher markups than imported goods,” noted Minister of Agriculture Armands Krauze.
“It’s no secret that the relationship between food producers and retailers could generally be better. As an organization representing both groups, this is especially unpleasant for us. This memorandum has every chance to become a new beginning for much closer cooperation between producers and retailers in the interest of Latvian residents and economic development,” said Jānis Endziņš, Chairman of the Board of the Latvian Chamber of Commerce and Industry.
The memorandum was signed by the Ministry of Economics, Ministry of Agriculture, Consumer Rights Protection Center, Latvian Chamber of Commerce and Industry, Latvian Food Retailers Association, Latvian Food Producers Federation, Latvian Central Union of Dairy Farmers, Cooperation Council of Agricultural Organizations, and the association “Zemnieku saeima.”
The implementation of the memorandum will be supervised by the Consumer Rights Protection Center, while the Competition Council has already given a positive opinion on its compliance with competition law. Plans include analyzing food price dynamics, conducting public surveys, and collecting data on the share of local products in the market.
Several activities are already underway: amendments to the Consumer Rights Protection Law have been announced for public consultation, and the draft law “Amendments to the Prohibition of Unfair Trading Practices Law” will be revised.
This initiative is just the beginning — it is expected that a wider circle of retailers, producers, and other food sector participants will join the memorandum soon.
Ministry of Economics
Public Relations Department
Email: prese@em.gov.lv
