The Slovenian competition authority, known as AVK, has completed a study on the prevalence of selling agricultural and food products (KŽP) below cost in 2025. This follows the introduction of the Food Act (ZHra), which replaced the previous Agriculture Act (ZKme-1) and added the prohibition of selling KŽP below the purchase price, including VAT and discounts.

The study found that eight retailers in Slovenia incurred a total loss of approximately 14.5 million euros from selling KŽP below cost. One retailer's financial loss represented one percent of their annual revenue, while others experienced losses as low as 0.01 percent.

Significant losses were noted in categories such as fruit, meat, vegetables, and alcoholic beverages, with beer, chicken meat, and milk chocolate standing out. The financial impact of below-cost sales was more pronounced for perishable goods, often influenced by the volume of sales rather than just the negative margin.

The research also indicated that private label products (TBZ) accounted for a larger total loss compared to other products, as they were sold in greater quantities. Most recorded losses occurred in the first quarter, although the variety of products sold below cost did not significantly decrease throughout the year.

Retailers justified below-cost sales through regular promotions, competitive adjustments, commercial decisions, and clearance of excess stock. They often viewed sales of products nearing expiration as a necessity rather than a business decision. The study documented instances of below-cost sales but did not assess the consequences for suppliers or competition.

To evaluate potential effects on suppliers, further analysis of purchasing conditions, discounts, credits, promotional contributions, and contractual changes over time would be necessary. The study aimed solely to determine the prevalence of below-cost sales, leaving the complex implications for suppliers unaddressed. The findings will serve as a benchmark for monitoring market conditions following the new legal framework in 2026.

A non-confidential version of the study is available through the provided link.