The proposal to limit markups on dairy products between producers and retail chains has not yet been agreed upon. The idea envisages 120 dairy processing enterprises cooperating and offering common production under one standard.
This was stated by the chairman of the National Association of Dairy Processors Vladislav Mihaylov on the air of “Hello, Bulgaria“. According to him, the model covers yogurt and fresh milk, cheese, butter and yellow cheese.
Producers offer a markup of up to 10%
Dairy processors are willing to voluntarily commit to selling their products based on factory cost, transportation costs and a markup that does not exceed 10%.
As an example, Mihaylov pointed to a product with a cost of 1 euro. The proposal is that it be sold to retail chains for 1.10 euros, and that stores add a markup between 25 and 35%.
„I have no categorical refusal. I can say that it is in pieces“, said Vladislav Mihaylov.According to him, the reason for the delay is the talks that have begun on the legal formulations. The chairman of the association emphasized that the memorandum does not provide for a price ceiling or a markup ceiling, but voluntary commitments between the parties.
Talks with five retail chains
Work on the proposal has been going on for about three months. The talks began with one of the large retail chains, and later other companies joined them.
Talks are currently being held with four of the largest retail chains, and work is about to begin with a fifth. Mihaylov said that there is interest in the model from the retailers, and some of the details have already been discussed.
The chairman of the National Association of Dairy Processors expressed hope that the concept will be implemented within a few months. He indicated that the producers are ready to comply with the voluntary commitment if the memorandum is finalized.
Sources: nova.bg