MSME entrepreneurs say massive supermarket imports destroy national industry

The Dominican Confederation of Micro, Small, and Medium Enterprises (Codopyme) expressed concern over denunciations by national cookie producers and the Dominican National Brewery, which have revealed the devastating impact of massive imports from supermarket chains on the local market.

The MSMEs guild affirms that these new denunciations confirm what it has systematically warned about the supply model based on indiscriminate imports, which it points out is displacing Dominican production, destroying jobs, and putting at risk the sustainability of the national productive fabric, especially that of manufacturing MSMEs.

What cannot be ignored?

He maintains that cookie producers have reported a sharp drop in sales due to the aggressive increase in imported products, many of which lack proper controls or have prices impossible to compete with under asymmetrical conditions.

He adds that the beer industry, as seen in the recent case between Cervecería Nacional Dominicana and imported Wala beers, shows that even large-scale industrial sectors are affected by this practice.

Damage to manufacturing MSMEs

Codopyme expressed in a note that for months it has warned that private labels and direct purchases at origin by supermarkets are displacing thousands of national producers, particularly micro and small companies that cannot compete on equal terms.

They point out that this situation puts at stake thousands of direct and indirect jobs generated by manufacturing MSMEs, the national agricultural and industrial value chain, the fiscal sustainability of the country due to the reduction of domestic production, food security, and the ability to produce essential goods locally, and the industrial diversification that the Dominican Republic has built over decades.

The entity made an urgent call to the Government, the National Congress, and the regulatory agencies to adopt immediate measures and to review the import practices of supermarket chains, ensuring that there are no abuses of dominant positions or unfair competition practices.

Codopyme also urged the authorities to establish clear rules for the participation of domestic producers on supermarket shelves, similar to models in other countries in the region, and to strengthen the Internal Trade Directorate to ensure the practical defense of the interests of domestic producers and MSMEs.