ON REGULATION OF NETWORK TRADE ACTIVITIES IN FOOD DISTRIBUTION CHAINS

Issue № 7, 2023, article № 6, pages 57-64

Section: Integration and cooperation in agribusiness

Language: Russian

Original language title: О РЕГУЛИРОВАНИИ ДЕЯТЕЛЬНОСТИ СЕТЕВОЙ ТОРГОВЛИ В ПРОДОВОЛЬСТВЕННЫХ ЦЕПОЧКАХ ТОВАРОДВИЖЕНИЯ

Keywords: FOOD MARKET, RETAIL CHAINS, MARKET DOMINANCE, GOVERNMENT REGULATION, PRODUCER PRICES, RETAIL PRICES, TRADE MARGINS

Abstract: The network retail trade in food products is a highly efficient branch of the economy. It is high-tech, customer-friendly, but some aspects of its operation are perceived as alarming and even undesirable. The share of foreign capital is significant in the ownership structure. All large networks have offshore divisions, and most of the net profit is transferred abroad. Traditional forms of retail food trade cannot compete and are going bankrupt. This, in turn, has a negative impact on small-scale agricultural production. Conflict relations with manufacturers (suppliers) over supply prices and bonus payments cause concern. In the retail segment of activity, the practice of establishing excessively high trade margins is ambiguously perceived. The average levels of trade margins, which are almost twice as high as those of foreign retail chains, seem not quite reasonable. The article outlines measures to strengthen the administrative regulation of the activity of network food trade, including restrictions on its further expansion and regulation of prices and trade margins. A possible decrease in the efficiency of trade networks will increase the competitiveness of non-network forms of trade and small-scale agricultural enterprises

Authors: IUrkov Evgenii Petrovich