Updated: May 31
At Plaza Magna we believe the modern food chain is unfair with farmers, small retailers and consumers and that only big distributors benefit. How so?
It's unfair with small retailers because, while big distributors buy directly from producers where produce is grown and at very low prices, retailers have to buy from local wholesalers at a much higher price. Furthermore, because big retailers paid much less, they have a great competitive leverage over small retailers which allows them to sell their produce at higher prices, making a profit much higher than small retailers.
It is also unfair with farmers because big distributors are few and farmers are many. This creates an unbalance between offer and demand which gives big distributors leverage when negotiating prices with farmers and allows them to at buy very low rates. A small farmer has no other option but to sell at the price big distributors tell him to, or not sell at all.
Lastly it is also unfair with consumers because most consumers are unaware of the extremely low price at which farmers sell their produce. Most consumers buy at supermarkets where big distributors are able to sell at very high prices and even higher profit margins. The consumer is unaware of this; he is buying a product that to him is not that expensive, but in reality he is being scammed with an overpriced product.
At Plaza Magna we aim to empower retailers so that they may buy where produce is grown, directly from Spain like big distributors do and at similar rates as they do, thereby giving them a fair chance to compete with them. In the long run we also believe farmers will benefit since they'll have a larger number of buyers. And lastly consumers should also see significant price drops.