Italy’s Antitrust Watchdog Deepens Probe Into Supermarket Practices and Farmer Earnings

The investigation comes amid mounting concern that the way large retailers negotiate and promote food products is undermining smaller producers, who form the backbone of Italian agriculture. Gennaro Sicolo, president of the CIA–Italian Farmers Association, said these dynamics are hurting both quality and diversity in the market. “These practices do not allow a focus on product quality or the participation of small and medium-sized companies, which are the backbone of national agricultural production,” he said.

Olive oil producers are among those most exposed to the current retail model. Supermarkets frequently offer olive oil at strikingly low prices, often framed as temporary promotions. Per a statement outlining the watchdog’s concerns, these discounts are commonly used as a marketing hook, taking advantage of olive oil’s popularity to bring shoppers into stores, even if it means eroding value further up the supply chain.

AGCM’s latest data also show a widening gap between what consumers pay and what farmers receive. Average food prices have risen by almost 25 percent over the last four years, far above the 17.3 percent increase in overall inflation. In 2025 alone, food prices climbed 2.3 percent year on year, compared with a 1.2 percent rise in general inflation, according to a statement accompanying the probe. Despite this, farmer incomes have not kept pace, with many growers reporting margins that barely cover their costs.

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The authority is concentrating on how large retailers structure their contracts with suppliers, since these agreements play a decisive role in setting prices and determining how income is shared across the agri-food chain. Centralized purchasing by major supermarket groups, which allows them to negotiate on a massive scale, is a key part of the inquiry, per a statement from AGCM officials.

Another area under review is so-called trade spending, the payments that suppliers make to retailers to secure shelf space, promotional campaigns and product listings. These fees can significantly reduce what producers ultimately earn from their goods. At the same time, supermarkets have increasingly pushed their own private-label brands. In 2024, private-label food products, including olive oil, posted a 35.4 percent increase in turnover compared with 2019, highlighting how quickly these lines have expanded, according to a statement summarizing market trends.

The watchdog’s goal is to determine whether these retail strategies are distorting competition, reducing transparency and skewing the distribution of income along the food supply chain. AGCM is expected to release its findings by the end of the year.

Farmer groups say the outcome could be crucial. As supermarket promotions continue to dominate Italian food sales, the CIA has repeatedly warned that growers are being left with what it calls persistently negligible earnings. In a note to Olive Oil Times, Sicolo urged more openness about how value is shared. “A transparency initiative is needed. Consumers must know the origin of the product, the origin of the raw material and the value recognized to farmers,” he wrote.

He added that shoppers should be able to see how much of the final price goes back to those who produce the raw ingredients. “Consumers must know how much the raw material is paid to producers, what constitutes a fair income for processors and what constitutes a fair income for distributors,” Sicolo said.

Source: Olive Oil Times