Retail chains have faced criticism, but they have contributed to the development and modernisation of Bulgarian production. This is what farmer Hristo Kumchev says. He grows green salads, iceberg lettuce, peppers and fruit and has been working with Bulgaria’s major retail chains for 25 years.
Kumchev, who has been involved in agriculture for 30 years, urged producers and consumers not to be pitted against each other because of high food prices and disputes over incomes in the sector.
“Retail chains are not charitable organisations. They are businesses. Producers are businesses too,” he wrote.The costs behind food prices
According to the farmer, the final price of agricultural produce is not determined solely by the producer’s desire to earn more. It includes wages and social security contributions, fuel and transport, electricity and water, packaging and consumables.
Kumchev also points to the costs of logistics, warehouses and storage, administrative fees and taxes, as well as the requirements for growing, storing and packaging the produce. In his words, VAT on food also contributes to the formation of the final price for consumers.
He claims that in a number of cases Bulgarian producers receive a better price for their produce than their European counterparts. This, however, does not automatically lead to higher profits, as costs and productivity are also important.
“They taught us about quality and planning”
Kumchev believes that working with major retail chains has confronted producers with requirements that were not always easy to meet. Among the results, he points to better quality, consistency, traceability, organisation, planning and compliance with deadlines.
According to him, retail chains have prompted farmers to invest in and modernise their production. He notes that through them, some producers have gained access to sustainable market opportunities that they would have struggled to achieve solely through traditional sales channels.
“We also have criticisms of them. Not everything is ideal and not everything is fair. But denying their positive role would be dishonest in the face of the truth,” the farmer says.
A call for a long-term policy
Kumchev raises the question of why production in Bulgaria is expensive and why the state does not create sufficiently good conditions for competitiveness. In his words, a retail chain cannot be held responsible for the lack of a long-term state policy in agriculture, nor can the market compensate for all the weaknesses of state governance.
The statement comes amid rising tensions between major retail chains and the authorities. Focus reports on a fine imposed by the Commission for Protection of Competition and hundreds of inspections at the premises of major retailers.
According to Kumchev, the solution does not lie in pitting producers and consumers against each other, but in more efficient production, investment, strategy and clear responsibility.
Sources: focus-news.net