We do have those markets but they are much more expensive (for exactly that reason that they aren’t subject to the price gauge as the supermarkets are). They are essentially for some (rich) hippies/yuppies only.

I can’t speak for other EU countries but in Germany people will buy the cheapest food almost always. Quality or farmer welfare is a minor concern for the majority.

Of course we do

But most people don't want to make the effort to go there instead of buying everything at the supermarket

Even though they still say that they want our farmers to have decent working conditions and incomes

But even the farmers will eat cheap imported lentils over local ones