site.btaTrade Union Warns of Possible Cartel Practices in Dairy Pricing

There is a strong possibility of cartel practices in dairy pricing, Confederation of Independent Trade Unions in Bulgaria (CITUB) President Plamen Dimitrov said on Wednesday. He participated in an extended meeting of the Union's Regional Council in Ruse.

Dimitrov noted that CITUB has been closely monitoring wholesale and retail prices of essential goods in recent months. He said that markups from wholesale prices to retail levels often range between 50% and 100%, which the Union views as "scandalous and indicative of non-market behaviour". 

According to him, retail chain prices are 2% to 12% higher than those in local shops, even though both purchase from wholesale exchanges. CITUB monitors more than 600 outlets in 80 municipalities monthly, and the trend has persisted for three consecutive months, he added.

Dimitrov said the first observations were submitted to the National Revenue Agency and the Commission on Protection of Competition (CPC) in June. A sectoral analysis of food products, with emphasis on dairy, is under way and is expected to be completed by the end of September. "If confirmed, CPC must implement specific decisions and sanctions," he stressed.

Dimitrov said the absolute price of dairy products in Bulgaria is among the highest in the EU, exceeding levels in Germany, the Netherlands and France.

Regarding the minimum wage, Dimitrov said it will rise from BGN 1,077 now to BGN 1,213 (EUR 620) from the start of next year. If Bulgaria follows the post-eurozone entry trend of the Baltic states, the average wage could reach EUR 3,200-3,300 within a decade, compared to about EUR 1,250 now, he added. "These are objective data. Whether they will be replicated in Bulgaria is hard to say. We want wages to grow by at least 10% to 15% annually," Dimitrov said.