Traders at outdoor markets cash in on Finnish appetite for new potatoes, berries, and vegetables

Tax authorities considering closer scrutiny of cash transactions

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Early on Tuesday morning it was still deserted at the outdoor market in Helsinki’s district of Hakaniemi. However, right after half past six vendor Seija Tarvainen was already in full swing.
      Her stall is erected every morning and fresh vegetables are placed on the counter. It is good to train working at a brisk pace, as at Midsummer there will be no empty space at the market.
      ”Thursday and Midsummer Eve mark the high season for us. Then we will have to wake up already at 3:00 am, and the stall will have to be ready at 5:00 am”, Tarvainen notes.
     
The cash registers of vendors jingle when Finns are doing their traditional Midsummer shopping for vegetables, potatoes, and berries at market places.
      Seppo Sintonen, the Chairman of the Board of the Central Organisation for Finnish Outdoor Markets and Fairs, estimates that Midsummer sales are worth hundreds of thousands of euros. He says that the tradition of Midsummer shopping is so strong that there will be no shortage of customers.
      ”In terms of customer numbers, Midsummer is certainly the busiest time of the summer. However, in terms of money, the strawberry peak season in July is the best”, Sintonen notes.
      In the beginning of the summer, the prices of for example berries are still rather high, but during the strawberry season in July the margins come down. Sintonen is expecting a normal strawberry crop.
      ”Even if the crop is small, outdoor market places usually get enough merchandise. The reason for that may be the fact that even the farmers get the best prices at outdoor markets”, Sintonen says.
     
At outdoor markets, the most common method of payment is cash. The entrepreneurs themselves are responsible for giving an account of their earnings, but the Tax Administration is also monitoring their trading.
      ”Cash sales call for strict income monitoring. At present, the traders themselves handle the monitoring as they see fit. Admittedly, there is a slight credibility problem,” says Riitta Kekäläinen, a senior inspector at the Finnish Tax Administration.
      Kekäläinen notes further that for example in Sweden traders have to use a compulsory cash register system, which is why no such surveillance problem exists.
     
”In the future we will have to think over how we could oversee cash sales. The Swedish model is one option”, the senior inspector comments.
      In other respects, all traders at outdoor markets take care of their duties punctually. Tax authorities arrange tax check-ups even at small enterprises on a regular basis, but no major problems have come to light.
      Seppo Sintonen confirms that as far as he knows there have been no problems with the authorities over the past ten years.
      Electronic cash register systems would represent a big change at market places. Sintonen says that outdoor retail market selling is such a traditional line of business that plastic is accepted only at the largest stalls.
     
Even in Hakaniemi, old traditions regulate trade at the market place. The vendors of vegetables, potatoes, and berries have been placed in different parts of the square.
      On Midsummer Eve, the largest crowds are seen at the market place from around 9:00 am onwards.
     
FACTFILE
     
The market stall prices tend to be at their highest at the peak season of the summer. Only after midsummer will prices start to decline.
     
Finnish new potatoes cost from EUR 2.50 to 3.00 per litre, with the exception of the Sikli variety that costs EUR 4.00 to 5.00 per litre.
     
Finnish vegetables: Onions and carrots cost EUR 2.50 a bunch. Peas EUR 5,00 per litre. Tomatoes EUR 2.50 per kilo. Cauliflower EUR 5.50 to 6.00 per kilo.
     
Berries: Finnish strawberries cost EUR 5.00/a carton of 0.5 l. Foreign strawberries EUR 3.50 to 4.00 per litre. Foreign cherries EUR 4.00 to 5.00 per litre.
     
Prices and wares were sampled on Tuesday at Hakaniemi and the Market Square (Kauppatori) in the South Harbour.


Links:
  Central Organisation for Finnish Outdoor Markets

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