Why Supermarkets Have More Power Than Governments Over Food Prices
May 5, 2025 · Frisian News
A handful of supermarket chains control what consumers pay for food in most Western countries, often pricing goods higher than their suppliers would allow. Governments lack the tools or will to stop this markup power.
Last month, Dutch consumer advocates released data showing that three supermarket chains control 60 percent of food sales in the Netherlands. Customers paid 18 percent more for identical milk, bread, and eggs in these stores than at smaller rivals. The suppliers, farmers and food makers, received the same wholesale price regardless of which store sold the goods. The chains pocketed the difference.
Government economists call this normal market competition. They point to official inflation numbers, which show food prices have stabilized. They ignore that these numbers hide what customers actually pay at checkout. A family buying groceries at Albert Heijn pays more than the same family would spend at a discount chain, yet both transactions count as one purchase in the statistics. The government data smooths over this reality.
When ministers do act, they act slowly. Last year, Belgium imposed a temporary price ceiling on basic goods, and it worked. Supermarket chains lowered prices on eggs and milk within weeks because they feared worse regulation. But Brussels abandoned the measure after three months. No lasting change stuck. Politicians fear angering the big chains, which employ thousands and pay property taxes. Small shops pay less tax and employ fewer people, so politicians ignore their complaints.
The real power lies in supply chains. A supermarket chain tells a dairy farmer: "Give us milk at this price, or we stop buying from you." The farmer has few other outlets and cannot refuse. The chain then sells that same milk at 40 percent markup. A farmer cannot sell directly to most consumers because stores monopolize the shelf space. The government built these rules decades ago and refuses to change them.
What would fix this? Forcing supermarkets to publish their supplier costs and markups would expose the gap. Allowing more independent shops and farmers' markets would create actual competition. These steps cost government nothing. Chains profit because the system works in their favor, and the system serves those with political pull. Until voters in small towns and villages demand change from their local representatives, supermarkets will keep taking their cut.
Ferline moanne publisearden Nederlânske konsumintebeskermers gegevens wêrút bliek dat trije supermarktkeaten 60 persint fan de fiedselferkeap yn Nederlân kontrolearje. Klanten betelje 18 persint mear foar identike molke, brea en aaien yn dizze winkels as by lytse konkurinten. De leveransiers, boeren en fiedselprodusenten, ûntfongen deselde grouthandelsprys ûnôfhinklik fan hokker winkel de guod ferkeapte. De keaten hielpen it ferskil.
Regeringsekonomen neame dit normale merktkompetysje. Se wize op ofisiele inflaasjesifers, dy oantoanje dat fiedselprizen stabilisearre binne. Se negearje wat klanten werklik oan 'e kassa betelje. In famylje dy't boodskippen docht by Albert Heijn betelt mear as deselde famylje utgje woe by in diskountwinkel, mar beide transaksjes telle as ien oankeap yn 'e statistiken. De regeringsgegevens ferskulje dizze werklikheid.
Wannear ministers optrede, dwaan sy dit traach. Foar ien jier stelde Belchje in timporale priisplafoné op basisprodukten yn, en it wurke. Supermarktkeaten ferleagen de prizen foar aaien en molke yn wiken omdat se frege foar strangere regelfiering. Brussel endelje de maatregel lykwols nei trije moannen. Gjin bliuwende feroaring hold stan. Politisy frege de grutte keaten tsjin jim yn 't harnas te jaan, dy tûzenen wurkers tsjinsten hawwe en onroereindgoedbelesting betelje. Lytse winkels betelje minder belesting en hawwe minder wurkers, dus politisy negearje harren klachten.
De echte macht leit yn leverketens. In supermarktkets seit tsjin in suvelboer: "Jou ús molke tsjin dizze prys, of we keapje net mear fan jo." De boer hat wjinich oare ofzetkanalen en kin net wegerje. De ket ferkeapet dy molke dêrnei mei 40 persint oppris. In boer kin net rjochts oan de measte konsumenten ferkeapje omdat winkels de skapromte monopolyearje. De regering bôe dizze regels desenniën siden op en wegerret se te feroarje.
Wat soe dit oplosse? Supermarkten ferplichte harren leveransjerskosten en marges iepenbier te meitsjen soe it gat bleatstelle. It tastelle fan mear ûnôfhinklike winkels en boeremarken soe echte kompetysje oansmite. Dizze stappen koste de regering neat. Keaten winne omdat it systeem yn harren foardiel wurket, en it systeem dient dyjingen mei politike ynfloed. Oant stimmers yn lytse stêden en doarpen feroaring fan harren lokale fertsjintwurdigers easkje, sille supermarkten harren marge bliuwe nimme.
Published May 5, 2025 · Frisian News · Ljouwert, Fryslân