The Price War, 6 years on | la suite | France 2

In 2008 we reported on purchasing power and answered one simple question: Who benefits from the price war? We followed the progress of 3 high volume products from the producer to the supermarket shelf: lettuce, milk and ham. With our calculators in hand we investigated the roles of various players: wholesalers, central buying services and distributors. We analysed their margins and their practices. At the time we met with Jean Pierre, a market gardener in the South West. He was selling his produce at a loss, strangled by the supermarkets. In order to survive, Jean Pierre moved into direct sales. Six years later, Jean Pierre is selling his lettuce at the same price, 32 cents, but the supermarkets have increased their margins. In 2008 we also investigated the milk market. At the time its price was rising. Today the price of milk is plummeting and the sector is in deep crisis. Farmers like Patrick cannot sell their produce at a price that covers costs. Because the battle between small producers and the major brands has intensified. However, various initiatives have been introduced to regulate the system. Legislation has changed, banning certain dubious business practices such as refunds. To what effect? We discover that the supermarkets have found new schemes to inflate prices. Schemes like disguised inflation, a practice that is widespread along the shelves, in particular in the ham department!