Local produce in supermarkets: shifting trends, ongoing challenges

The role of local fruit and vegetables in Maltese supermarkets remains a topic of debate, with farmers, regulators, and retailers pointing to both growing opportunities and persistent obstacles.

‘A change in trend’

Brian Vella, CEO of the Malta Food Agency, noted that more large supermarkets are beginning to show interest in stocking local produce. “We are seeing large supermarkets that before they did not used to sell local products, they are now approaching us to start selling them,” he tells BusinessNow.mt.

However, Mr Vella also acknowledged that financial incentives often play a decisive role in sourcing decisions. “If the agent is offering you more money to sell foreign products, then the owner of the supermarket or shop will go with that. But we are seeing a change in trend and that people are preferring the Maltese product.”

Supermarkets weigh profit margins

Għaqda Bdiewa Attivi President Malcolm Borg emphasises that supermarkets are profit-driven and source accordingly. “Obviously the supermarkets will buy from where they see is best, and see from where they will make most money,” he says.

He explains that imported products often carry a higher profit margin. “If they buy onions from foreign countries for 50c, they can sell it for €2, and if they buy it from Malta they sell it at the same price. Obviously the profit margin from imported vegetables and fruits will be bigger.”

Still, Mr Borg points out that local products are often cheaper and more flexible to source. “Supermarkets purchase local fruit and vegetables because they are cheaper and more flexible: They call the farmer and the farmer brings his products to the shop. These products are bought because there is demand.”

He also raised the issue of Malta’s lack of processing infrastructure, which leaves supermarkets reliant on imports for pre-packed and processed vegetables. “All there needs to be is an entrepreneur that buys a processing line, purchases the product from the farmer, and starts generating the product. This is the same idea how Maltese tomato paste (kunserva) is done and Maltese wineries.”

Seasonality is another limitation. Mr Borg recalls that earlier this year Lidl began selling local produce but had initially encountered certification issues. “Lidl had an issue with certification because the local products needed to have a specific type of certification. We didn’t have this in Malta, so now we made an arrangement and we have the certification.”

Retailers speak out

Smart Supermarket said that while it sources most of its fruit and vegetables from the pitkalija (farmer wholesale market), it relies on imports when local stock runs short.

“We only sell imported fruits and veg if there is no stock locally, because you need to stay competitive,” the supermarket explained.

However, it admitted that customers sometimes prefer imported products on the basis of appearance. “One of the problems we face is that when we have a local product, people tend to compare it to the imported product, they tell us ‘it’s not as appealing’. The taste varies between one product and the other, and even the size. Generally the imported product is bigger because foreign countries use more pesticides.”

Lidl also acknowledges the balancing act between local supply and consumer demand across its 11 stores. “While we actively work with local suppliers, the capacity of individual growers sometimes means they cannot meet the large-scale demand of our entire store network without risking a shortage for their own operations. Therefore, we strategically supplement our local offerings with imported alternatives to ensure our customers can always find a wide variety of fresh items,” a spokesperson says.

The retailer added that it works with local farmers to meet the certification standards required to supply its stores. “We work closely with our local suppliers to ensure they meet the high quality and safety standards required to work with us, such as obtaining certifications like Global G.A.P. This process helps them evolve, improve their practices, and become more competitive, which ultimately benefits them and the wider market.”

Beyond fresh produce, Lidl says it is committed to expanding its range of Maltese products across other categories, supporting local producers through partnerships, marketing efforts, and increased visibility in-store and online.

Local versus imported

The feedback suggests a growing but complicated relationship between supermarkets and Maltese agriculture.

While supermarkets acknowledge demand for local products, the economics of profit margins, consumer preferences for “perfect-looking” imported items, and supply limitations continue to tilt the balance towards foreign produce.

Still, the consensus across farmers, regulators, and supermarkets is that the trend towards local produce is slowly strengthening, provided issues of scale, processing, and certification continue to be addressed.