The interim report from the sectoral analysis of the food market has proven severe structural deformations in the sector. The goal of the Commission for the Protection of Competition is for the report to serve as a basis for dialogue between all interested parties to improve competition in the market and for self-regulation by commercial entities. This was stated by the Chairman of the Commission, Assoc. Prof. Rosen Karadimov, in “From the Day“ on BNT.
The large-scale study of food products examines the entire supply chain - from the producer to the retailer. Karadimov explained that the analysis has shown serious problems with milk and dairy products. For the period 2020-2024, the production of raw cow's milk will decrease by 25%, while the import of milk and dairy products will increase by 43%.
The Chairman of the CPC emphasized that Bulgaria is among the countries with the lowest regulatory barriers to entry into the sector - both when opening and operating new retail outlets.
“The CPC is investigating the pricing policy of ten large retail chains for the months of June, July and August this year. The conclusion is that for these months there was no increase in prices in retail chains and there is no data for a coordinated speculative increase in prices in connection with the introduction of the euro“, Karadimov was categorical. At the same time, high trade markups are being reported. They are formed from trade discounts on the producers' delivery prices and from the additional mark-up above the delivery price set by the chains.
Based on the results of the interim report, the Commission will launch in-depth studies regarding the structure of the retail market in less developed regions, in the milk and dairy products sector and the pricing policy, discounts, mark-ups and trading conditions between suppliers and traders.
„The Commission does not have a functional task to regulate the price level under the Euro Adoption Act. Our responsibility is longer-term. With the report, we make a number of recommendations to the state authorities in order to improve the market, avoid the structural deformations allowed and stimulate Bulgarian production, and through it - the effectiveness of the competitive environment at the price level. Among the measures we propose are the promotion of cooperation, as well as the opening of warehouses and exchanges and markets to shorten supply chains, etc., Karadimov also said. The Commission remains ready to carefully monitor the self-regulation process and exercise its legal powers, the chairman of the antimonopoly authority added.