One major food importer has called out MEP Alex Agius Saliba's claims that local food importers directly control the prices of products and are guilty of illegal practices.
Earlier this week, a European Parliament committee accepted the Labour MEP's request to call on the European Commission to investigate monopolies in food retail in Malta.
Agius Saliba said the island's size and geographical limitations had led to the formation of de facto monopolies where a handful of importers dominate the market.
But on Saturday, Francis Busuttil & Sons Marketing, one of Malta’s main foodstuffs importers, said it never took any advantage of its position and always offered consumers the best prices, despite the challenging economic climate characterised by price increases.
"We categorically refute the unsubstantiated claim made by MEP Alex Agius Saliba that we are somehow seeking to capitalise on a situation where the price of foodstuffs has risen across Europe," a company spokesperson said in a statement.
"We invite Dr Agius Saliba to engage with us directly so he can see the facts for himself.”
The spokesperson said Francis Busuttil & Sons does not dictate market prices but is working around the clock to mitigate the situation by negotiating the best prices with international suppliers and local service providers and is trying to optimise its operating costs while prioritising quality.
“While we represent a number of brands, we have no control over the market," the spokesperson said.
"Many of our brands are available locally through other importers and retailers contrary to Alex Agius Salib’s misinformed remarks.
"Furthermore, Francis Busuttil & Sons Marketing does not place any stickers on its products to distinguish them from parallel imports. The only stickers we attach contain an English translation of ingredients whenever this is necessary since this is a legal requirement."
The spokesperson said there have been occasions when the company came across products imported by other importers not following this legal requirement or ignoring quality requirements such as proper temperature control throughout the supply chain process.
"The reason foodstuffs have increased in price so much is because we are living in a time where several external factors have converged to affect inflation," mentioning the disruptions to key shipping routes due to attacks on shipping lines, severe droughts, as well as skill shortages and inflated property prices.
"Costs have gone up across the board and will continue to do so with new EU Environmental Taxes and ESG requirements. While we agree that we all have a role to play for a more sustainable future, this does come at a cost. To remain a viable business, we are forced to make the necessary adjustments."