A new food law proposes a ceiling on markups for producers, processors, resellers, and traders. Former Minister of Agriculture Kiril Vatev discussed the topic with bTV, emphasizing the market's manipulation through markups. He stated, "Imported food products enter at a higher price. With a lower markup on the shelf, they are noticeably cheaper than Bulgarian products, which are subject to high markups. This is what this law should regulate."
Vatev suggested that markups in stores should not exceed the lowest agreed markup for similar quality products from different manufacturers to prevent market manipulation. He remarked, "This law is a hopeful step in the right direction. However, let us not forget that prices in the market are determined by an extremely important factor - the ratio between supply and demand."
He highlighted that large supermarket chains dominate the Bulgarian market, holding nearly 70% market share, increasing to 92% during pre-holiday periods. This dominance poses challenges for Bulgarian producers, and the new law aims to regulate these relationships to ensure profitability within the chains.
In the "Fruit and Vegetables" sector, Bulgaria imports 70 to 80% annually. While seasonal products are available, off-season reliance on imports is necessary. Vatev noted that fresh meat stands mainly feature Bulgarian products, but processors face issues due to inadequate local slaughterhouses. "We have slaughterhouses that sell carcasses, and the processor does not need the entire carcass because he cannot utilize all the positions from it," he explained.
Source: akmu