site.btaBranch Organizations Call for Retail Markup Cap

Branch organizations are calling for a cap on retail markups in stores. This transpired from a statement of Dimitar Zorov, co-chairman of the National Union of Cattle Breeders, following a meeting initiated by Prime Minister Rumen Radev in connection with government measures to curb rising prices, ensure transparency in pricing, counter unfair trade practices, and protect Bulgarian producers and food quality. The meeting took place at the Council of Ministers on Thursday. Ministers, representatives of regulatory and oversight bodies, nationally representative trade union and employer organizations, as well as branch organizations from the agriculture and food sectors participated in the discussion.

According to the sector, there should be a cap on markups. “We want retail chains to adopt the practices used by their parent companies in Western countries, where maximum markups are up to 35%,” Zorov said. “For a short period of time, we want measures that will narrow the gap created by excessively high markups, which currently range between 70% and 130%,” he added.

According to him, this would free up 40% in financial resources. “We want part of these funds to be directed toward consumers, which would mean lower prices, while the remaining funds should go to struggling milk producers and vegetable growers,” Zorov explained.

In his view, the food that Bulgarians should consume is the food produced in the country.

Zorov noted that producers were satisfied with Thursday’s meeting, especially with Prime Minister Rumen Radev’s conclusion that there should be a balance in the distribution of added value throughout the entire supply chain, greater transparency, and, above all, renewed attention to the quality of food products.

Tsvetan Tsekov, one of the founders of the National Fruit and Vegetable Branch Chamber, said that during the meeting they heard a serious commitment from the state to protect Bulgarian consumers and producers.

“We believe that the specific measures that will be taken will mark the beginning of the recovery of vulnerable sectors. We are pleased that the agri-food supply chain will be brought to light and that it will become clear who is distorting prices,” he noted.

According to Simeon Karakolev, co-chairman of the National Sheep Breeding and Goat Breeding Association, the state “is back in the game” with oversight of supplies along the agri-food chain.

“There is a major asymmetry in pricing, and this affects the two most vulnerable groups -  producers and consumers. Through legislative amendments, the state does not want to interfere in the work of retail chains or dictate prices, but rather to bring transparency to the entire process and restore fair markups. There is a market flaw, and it must be corrected,” he said.