site.btaFourteen Branch Organizations Oppose Latest Agrifood Supply Chain Bill Draft

Fourteen industry organizations have issued a joint statement opposing the latest version of the bill on the Agrifood Supply Chain, which was published for public consultation on July 29, the Bulgarian Industrial Association (BIA) said. The statement is addressed to the Prime Minister, the Agriculture Minister, and the Economy Minister.

According to the industry organizations, the bill runs counter to European law and the principles of the free market. The statement notes that the draft conflicts with provisions from two EU regulations. It emphasizes that other EU member states do not have such restrictive state intervention in price formation, and the only similar examples (Hungary and Romania) are already subject to infringement procedures and experiencing high inflation.

The bill creates risks for the economic and market environment, such as restriction of competition, market distortion, price increases, and risks to food security; legal uncertainty due to an unclear scope of application and the possibility for the Council of Ministers to unilaterally change its scope; and disproportionate restrictions on the freedom to negotiate and set prices.

The statement highlights the negative consequences of the bill for specific participants in the supply chain. For farmers, there is a risk of losses from unsold produce, administrative difficulties in calculating production costs, and an inability to adapt to market changes. For wholesale and retail traders, the risks involve unrealistically low imposed markups that do not cover logistics, storage, and marketing expenses. There is also a risk of refusal to trade certain products and disruption of supply chains. For processors, the risks include increased input prices, inability to work with Bulgarian raw materials, loss of competitiveness, and limitations on new products and innovation. Consumers face risks from a reduced product range, rising prices, and an increase in the shadow economy.

The statement is signed by the Association of Meat Processors in Bulgaria, the Association of Soft Drinks Producers in Bulgaria, the Fish Products Producers Association BG FISH, the National Vine and Wine Chamber, the National Branch Union of Bakers and Confectioners, the Association of Vegetable Oil Producers and Processors in Bulgaria, the Food and Drinks Bulgaria Association, the Union of Brewers in Bulgaria, the Union of Fruit and Vegetable Processors, the Union of Sugar and Sugar Products Producers, the Union of Poultry Breeders in Bulgaria, the Association of Industrial Pig Breeding in Bulgaria, the Association of Pig Breeders in Bulgaria, and the Union of Bulgarian Millers.

Last week, BIA said that although the goals of the draft law are in principle understandable and worthy of support, the means chosen to achieve them are unsuitable, disproportionate, and pose risks to both the economy and the legal system.

The initial version of the bill on the Agrifood Supply Chain was published for public consultation on June 13 of this year.

At a forum on the country's food security, organized in July by BIA and 15 of its member industry organizations in response to the draft law, representatives from these organizations called for the withdrawal of the Agrifood Supply Chain Bill.