Supermarket Giant Accused of Exploiting Dairy Farmers and Suppliers
Translated from Chinese, summarized and contextualized by DistantNews.
At a glance
- Financial commentator Hu Cai-ping criticizes PX Mart for allegedly exploiting dairy farmers and suppliers.
- She claims PX Mart's consignment system and high commission rates lead to farmers earning little and suppliers losing money.
- Hu questions whether the Fair Trade Commission should intervene in the supermarket's market dominance.
Financial commentator Hu Cai-ping has sharply criticized PX Mart, labeling it a "blood-sucking convenience store behemoth" for its alleged exploitation of dairy farmers and suppliers. Hu argues that despite the elimination of import tariffs on fresh milk, prices in Taiwan remain high due to the retail practices of certain powerful distributors. She specifically targets PX Mart's consignment system, claiming its commission rates are higher than outright purchases. This system, Hu contends, results in dairy farmers earning minimal profits and suppliers incurring losses, with some dairy factories facing significant deficits. Hu highlighted that while a liter of milk might retail for NT$100, only about NT$30 reaches the farmer, with another NT$30-35 going to the dairy processor, and a substantial NT$30-35 taken by retailers like PX Mart. She further pointed out that PX Mart's consignment model requires suppliers to handle unsold goods themselves, a risk not borne by other retailers. The commentator also noted PX Mart's demand for "most favored customer" clauses and other stringent supply agreements, questioning if the Fair Trade Commission should address potential monopolistic practices by such a dominant market player.
PX Mart is a blood-sucking convenience store behemoth, and it must take full responsibility.
Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.