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GVH Issues Recommendations to Ease Non-perishables Prices

Retail

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Hungary's Competition Office (GVH) has issued recommendations to rein in the prices of non-perishables and frozen foods, according to a report by state news wire MTI.

After an expedited probe of the non-perishables and frozen foods sector, GVH found that retailers' gross margins for such products are between 25% and 35%, "which can be considered significant". GVH noted that the margin was bigger than that for dairy products which the authority also scrutinized in an expedited probe.

GVH said stepping up oversight of trade of non-perishables and frozen foods is justified and it recommended "continuous action" with the aim of incentivizing competition.

The office pointed to the importance of promoting local production of fruits and vegetables, adopting precision farming practices in vocational training, boosting efficiency in the agriculture sector, and expanding the use of renewable energy. It said growers should get further incentives to coordinate production and sales.

GVH also recommended rolling out returnable glass packaging for non-perishables to cut down on input costs.

Market players have until June 8 to weigh in on the recommendations, and GVH has invited industry insiders to consult on the matter in person on May 16. 

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