Suppliers of seeds and nuts in Shanghai have reportedly halted deliveries to local stores operated by French retail giant Carrefour because of a dispute over fees.
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Carrefour has been charging additional fees to suppliers, meaning suppliers’ sale costs account for more than 50% of their total production costs, resulting in a loss to some suppliers, reported AFX Asia, citing a report in the China Business Times.
The Shanghai Roasted Seeds and Nuts Association, on behalf of its supplier members, was in talks with Carrefour asking the company to lower the charges and to abandon some charges altogether. When negotiations broke down, however, the suppliers decided to suspend deliveries to Carrefour.
