The Latvian competition authority, known as KP, has completed an anonymous survey of agricultural and food producers and suppliers to assess the effectiveness of its measures against unfair trade practices (UTP) and to evaluate supplier-buyer relationships. The survey included 54 suppliers from various food sectors, with a significant representation from dairy, meat, fruit, vegetable, and grain industries.

Results indicate that while supplier awareness and protection against UTP have improved, many suppliers still face pressure from economically stronger buyers. Notably, 83% of respondents belong to at least one supplier interest association, highlighting the growing importance of these organizations in advocating for supplier interests.

Compared to the previous year, there has been a significant increase in supplier awareness regarding the Unfair Trade Practices Prohibition Law (UTPPL). This year, 85% of respondents knew that KP is responsible for monitoring compliance with UTPPL, up from 49% last year.

Despite this progress, one-third of suppliers (33%) still do not feel adequately protected against unfair actions by buyers, although this is an improvement from 47% in the previous year's survey. Additionally, 37% of respondents reported experiencing unfair trade practices in their dealings with buyers in 2024, particularly with retail companies.

Common issues reported by suppliers include unilateral contract changes, demands for lower prices, order cancellations less than 30 days before delivery, and delayed payments, especially for perishable goods. The decrease in the number of respondents reporting UTP suggests that KP's market monitoring, warnings, and educational initiatives have had a positive effect, leading some powerful buyers to adjust their cooperation terms with suppliers.

In light of the survey results, KP plans to address UTP-related issues more actively by strengthening collaboration with industry associations to enhance credibility and promote collective interest advocacy. KP will also continue to provide individual consultations to suppliers for practical advice and support in cases of unfair practices, while maintaining a focus on UTP monitoring through regular industry dialogue and in-depth research.

KP expresses gratitude to all participants in the survey, emphasizing that active involvement in such surveys is an opportunity for businesses to contribute to a better competitive environment. KP's mission is not only to detect violations but also to foster a competition-friendly environment, including informing and urging responsible institutions to improve industry regulations. Suppliers are encouraged to provide feedback and suggestions for necessary regulatory changes and to report potential violations without waiting for KP's annual survey.