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Wish I could downvote this for fake info, but I'm too new. Distributors make a pittance for a relatively risky bet on delivering fruit and veggies. Margins are

Wish I could downvote this for fake info, but I'm too new. Distributors make a pittance for a relatively risky bet on delivering fruit and veggies. Margins are usually below 10%, often close to 5%, and definitely nowhere near 30%. On top of that, there's the added risk of damage happening to the goods in transit and storage, voiding the entire profit. Google and Apple make money by sitting on their asses and taking a slice off a developer's cheque, which is more akin to a usurious mafia slumlord rather than a tech company. Small farmers are on the short end of a stick, but only because by nature small landholdings are not profitable, and farming is a scale operation for production of a commoditized good by nature. App development is not a scale operation - a developer can be easily profitable with a small group of high-paying customers.

randomsearch 6y ago
UK typically ~ 3%, learnt that recently and was shocked.
eecc 6y ago
Nope, you should do your research before reaching for your guns. In Italy for example it’s a well known, scandalous situation that’s been going on for years. Apologies for the Italian links but that’s all I could find for now: https://www.ilfattoquotidiano.it/2020/05/14/frutta-e-verdura-la-grande-distribuzione-impone-i-prezzi-agli-agricoltori-a-noi-danno-30-40-centesimi-poi-vendono-a-25-euro-ecco-la-filiera-che-facilita-illegalita-e-sfruttamento/5801108/ https://www.ilfattoquotidiano.it/2020/05/14/frutta-e-verdura... https://youtu.be/29OYrFOYkTg https://youtu.be/29OYrFOYkTg
- drenvuk 6y ago
  excuse me for my lack of Italian but is there any way you can find something in English or possibly outline what is happening?
  - eecc 6y ago
    I’ll quickly try: there are a handful of big supermarket chains - the article and the video reportage mention Coop, Conad, Gruppo Selex, Esselunga, Eurospin - that set prices and mandatory discounts. They essentially don’t compete, and fairness is only left to goodwill (e.g. Coop is historically tied to the Left and operates under a more worker-friendly CoC. In theory.) Access to consumer markets is either via a looooong chain of small, inefficient and parasitic intermediaries or via the GDO, the logistics organizations of these few supermarket chains. So the farmers are squeezed, they fall in debt and go bankrupt, or sell out to big landlords; and both tend to employ illegal immigrants under inhuman working conditions to meet the prices set by the aforementioned.
- fakedang 6y ago
  And I could play disingeniously and claim a much higher percentage in my home country, where distributors routinely make much much more. But again, that would be disingenuous, since our environment for comparison is the US market and not the Indian or Italian market, both of which are rife with corruption. I could counter with a German or a British example which would just as much counter your point.
  - eecc 6y ago
    That’s parochial, the Apple Store is global not just a US thing. Folks, Apple has many faults and they’re certainly leaning on their position but don’t undermine your arguments with outrage comments

randomsearch 6y ago

UK typically ~ 3%, learnt that recently and was shocked.

eecc 6y ago

Nope, you should do your research before reaching for your guns. In Italy for example it’s a well known, scandalous situation that’s been going on for years. Apologies for the Italian links but that’s all I could find for now: https://www.ilfattoquotidiano.it/2020/05/14/frutta-e-verdura-la-grande-distribuzione-impone-i-prezzi-agli-agricoltori-a-noi-danno-30-40-centesimi-poi-vendono-a-25-euro-ecco-la-filiera-che-facilita-illegalita-e-sfruttamento/5801108/ https://www.ilfattoquotidiano.it/2020/05/14/frutta-e-verdura... https://youtu.be/29OYrFOYkTg https://youtu.be/29OYrFOYkTg

drenvuk 6y ago
excuse me for my lack of Italian but is there any way you can find something in English or possibly outline what is happening?
- eecc 6y ago
  I’ll quickly try: there are a handful of big supermarket chains - the article and the video reportage mention Coop, Conad, Gruppo Selex, Esselunga, Eurospin - that set prices and mandatory discounts. They essentially don’t compete, and fairness is only left to goodwill (e.g. Coop is historically tied to the Left and operates under a more worker-friendly CoC. In theory.) Access to consumer markets is either via a looooong chain of small, inefficient and parasitic intermediaries or via the GDO, the logistics organizations of these few supermarket chains. So the farmers are squeezed, they fall in debt and go bankrupt, or sell out to big landlords; and both tend to employ illegal immigrants under inhuman working conditions to meet the prices set by the aforementioned.
fakedang 6y ago
And I could play disingeniously and claim a much higher percentage in my home country, where distributors routinely make much much more. But again, that would be disingenuous, since our environment for comparison is the US market and not the Indian or Italian market, both of which are rife with corruption. I could counter with a German or a British example which would just as much counter your point.
- eecc 6y ago
  That’s parochial, the Apple Store is global not just a US thing. Folks, Apple has many faults and they’re certainly leaning on their position but don’t undermine your arguments with outrage comments