Retail: Only 30 Percent of New Contracts Signed with Suppliers

Only 30 percent of contracts compared to the total number signed so far have been signed by retail chains with suppliers based on the Law on the Prohibition of Unfair Trading Practices in the Food Supply Chain. This is data we received from business circles, and perhaps the best confirmation of this is that no retail chain responded to our questions.

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Thus, our estimates were confirmed that by the last day of March, when the deadline for signing new contracts between retail chains and suppliers was, it would not be possible to sign all contracts, as retailers and suppliers lost a lot of time in outsmarting each other over the meaning of certain provisions of the Law, and workshops were even organized across the country to clarify ambiguities.

As a source who wished to remain anonymous told us, such an outcome was to be expected, and among the first to sign their contracts were producers of fresh goods (milk, bread) because retail chains were also interested in reaching agreements with them. Following them, somewhat more difficult but still successfully, were the signatures of contracts with confectioners and beverage producers, but mainly with large companies from those sectors, while small ones were left behind. A similar situation exists with small dairymen and generally small food and beverage producers, who have not managed to sign all contracts. Very few farmers and vegetable growers have signed contracts, which was also confirmed to us by the president of the Independent Croatian Farmers Mato Mlinarić.

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– I believe that more contracts will be signed, but in a few months it should be seen how many domestic producers have been left without them, as the situation is such that certainly not all previous ones will receive new contracts, emphasizes our interlocutor.

However, some large producers, they claim, have signed the desired contracts, as confirmed to us by the director of Valipilet Andrej Alilović, but also, for example, the vice president of Atlantic Group for Corporate Activities Neven Vranković.

– At Atlantic Group, we closely monitored the preparations for the Law and adequately and timely prepared for its implementation, so its entry into force will not cause any delays or affect the reduction of business with any business group, or with any retail chain, said Vranković. The number of contracts would probably be higher if negotiators had not sought loopholes in the Law.