Impact of Foreign Capital on the Czech Economy: The Consequences and Unfortunate End of Traditional Czech Food Producers

Impact of Foreign Capital on the Czech Economy: The Consequences and Unfortunate End of Traditional Czech Food Producers

Unfortunately, the Czech economy is in a state where it is largely controlled by foreign capital. This is something completely unthinkable in Western countries, where family silver is protected. However, this has not been the case here since the nineties. At that time, lucrative businesses began to be sold off, and the only ones who had money for them were foreign companies.

It did not work out

For a while it was taken as an advantage. It was believed that large international companies would cultivate the local market. And sometimes such an acquisition actually worked out to everyone’s benefit. An example is Škodovka from Mladá Boleslav. However, it is already different in the food industry. For example, the entry of foreign business chains was not a very good idea, as it turns out today. These stores literally rip off customers with absurdly high prices and sell goods of poor quality, which is fully evident even today, when hardly a day goes by when one of them does not find defective goods.

Unfortunately, a number of traditional food producers have also fallen into foreign hands, often quite recently. An example is the producer of Znojmia cucumbers, Znojmia, which was bought out by the international giant Orkla in 2015. He had previously bought other great Czech brands such as Hamé, Májka, Otma or Vitana. However, as it turns out, he has almost no relationship with them and does not treat them the best.

It is Znojmia that will take the brunt of it now, because its owner has decided to close all the plants of this producer of cucumbers in the Czech Republic. It concerns operations in Bzenec in Hodonínsk and production in Panenské Břežany. It is the actual end of this traditional Czech society.

Foto: Shutterstock

Employees are permanently terminated

Znojmia cucumbers will remain on the market, but make no mistake. It will no longer be the traditional ones from the Czech Republic, but it will be interchangeable production from all possible corners, in short, where they will be the cheapest. This is how international chains do it with absolutely everything. The main thing is efficiency and low prices, tradition has no value for them.

There is already a slowdown in production plants. Their final closure should take place at the end of this year. At the same time, the Orkla company does not even try to give the impression that it would perhaps give the employees of these plants a job somewhere else. No, 250 people will be laid off.

Today it is already clear that the sale of Czech food companies to foreign owners was a huge mistake. It’s just a shame that something like this can’t be easily fixed anymore and it will take generations before it changes and new Czech award-winners in the food industry emerge.

Foto: Shutterstock

2023-09-19 14:00:00
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