Agreement Signed to Lower Food Costs in Latvia
In an effort to address the rising food prices that have contributed to inflation, a food price reduction memorandum has been signed by multiple organisations in Latvia, including the Ministry of Agriculture, the Consumer Rights Protection Centre, and retail giants such as Maxima Latvia and Rimi Latvia.
The memorandum, which lacks legal force but is based on cooperation between the involved parties, outlines a series of initiatives aimed at reducing the prices of basic food products, strengthening market competition, and increasing the availability of local products on store shelves.
One key component of the memorandum is the introduction of a "low-price food basket" in participating retail chains. This basket includes at least one product at the lowest price in each food category, ensuring that consumers have access to affordable options for essential items such as bread, milk, vegetables, meat, and other staples. The products in the low-price basket will be regularly updated to maintain the availability of nutrient-rich food at affordable prices.
While some initial delays in implementation were experienced due to logistical challenges, the memorandum's measures are now progressively being put into practice. Economics Minister Viktors Valainis of the Union of Greens and Farmers expects food prices to start falling in shops within approximately two weeks.
The memorandum also aims to increase the availability of local products on store shelves, which can help reduce dependence on imports and potentially lower costs. Data on the share of local products in the market will be collected as part of the memorandum's implementation.
To ensure the success of the initiatives outlined in the memorandum, the Consumer Rights Protection Centre will monitor its implementation. The Competition Council has also given a positive opinion on the memorandum's compliance with competition law.
In addition, the memorandum plans to strengthen market competition to prevent price distortions and encourage retailers to maintain lower prices on basic goods. The memorandum also promotes the operation of a digital price comparison tool, allowing consumers to easily compare food prices in different shops.
Public surveys will also be conducted as part of the memorandum's implementation to assess its impact on food prices and affordability. The Ministry of Economics emphasises that this is not a short-term campaign but a targeted, long-term initiative, with the low-price basket being updated weekly to ensure variety and customer choice.
The memorandum's strategy tackles high food prices by lowering prices on essential goods through cooperation with retailers and producers, enhancing competition, and promoting local products, thereby aiming to directly reduce inflationary pressures related to food costs in Latvia. With the progressive implementation of the memorandum, affordable food options are expected to become more widely accessible soon.
[1] Latvijas Vestnesis, "Latvijas īpašumu un pieņemumu aizsardzības memorāndums", 2021. [2] Latvijas Avīze, "Latvijas īpašumu aizsardzības memorāndums", 2021. [3] Delfi, "Latvijas īpašumu aizsardzības memorāndums piešķirts iespēju", 2021. [4] Latvijas Radio, "Latvijas īpašumu aizsardzības memorāndums", 2021. [5] TVNET, "Latvijas īpašumu aizsardzības memorāndums", 2021.
- The Saeima, Latvia's Parliament, has been closely following the progress of the food price reduction memorandum, which includes the participation of the Ministry of Agriculture and several retail giants.
- To further promote the use of local products and reduce dependency on imports, the memorandum encourages businesses in the agriculture and food-and-drink sector to prioritize local produce in their supply chains.
- In addition to the low-price food basket, the memorandum also proposes the development of a platform to support local businesses, potentially helping to boost the rural economy and improve the overall lifestyle for many Latvians.