Food Processors Accept High Slotting Fees Out Of Fear

05.27.2011 By Bostan Radu

Romanian food processors are afraid of the major store chains, which might take their products off the shelf, and therefore accept the highest slotting fees in Europe, Friday said Valeriu Steriu, chairman of the presidential committee for agricultural policies.

In a seminar on farming issues, Steriu said a food producer's sales are liable to drop by 60%-70% after its products are taken off the shelves of a retail chain. This threat always puts the producers at a disadvantage in negotiations with the retailers and drives them to accept slotting fees as much as 25% higher than elsewhere in Europe.

The retailers attempt to justify the high fees through aggressive promotion and by citing additional costs compared to those in Western Europe, said Steriu.