Are incomes able to catch up with the price hike in the store? How much have basic foods increased in price in 1 year and what can we buy with one salary? The topic in “Hello, Bulgaria” on Nova TV was commented on by the chairman of the National Association of Dairy Processors Vladislav Mihaylov and the chairman of the Union of Vegetable Oil and Oil Product Producers Yani Yanev.
According to Mihaylov, factors such as inflation, the jump in electricity prices and the disproportionate distribution of financial resources along the food sales chain - act in the direction of an increase in prices. "For our sector - dairy processing - in the first months after the New Year, I do not expect a significant increase in prices," he pointed out.
And he pointed out the reasons, which were many, including seasonal ones. "If we look back at the statistics over the years, around New Year there is always a peak in prices, which is already a fact. In January, however, things usually calm down a bit. Personally, I expect there to be an increase in prices in February and March, at least due to several main factors characteristic of our market", explained Mihaylov. And he predicts a 5 to 10 percent price increase after February due to the increase in electricity prices.
"In our country, sunflower oil is the only food product that is currently, and throughout the entire period since 2021, cheaper. The exception is 2022, when there were panic prices for a month or two due to the war in Ukraine. In 2023 and 2024, there was practically no increase. We are below the prices of 2021,", Yanev pointed out.
According to him, all other food products have increased in price by 30-35-50 percent and more. "This reflects increased costs – as a result of the COVID crisis, the war and disrupted supply chains. However, there is no such increase in sunflower oil. The costs are borne by agricultural producers and processors. Competition in the vegetable oil market is strong – both from other oils, such as soybean and rapeseed, and from imports from third countries, mainly on European markets. This competition keeps prices low", he is categorical.
Yanev emphasized that costs have increased everywhere - production, processing, distribution. But when there is real competition, it limits the possibility of a sharp increase in prices, he emphasized.
"Prices on foreign markets are decisive. At the moment, no increase is expected, despite the strikes on infrastructure, ports and tankers worldwide. This has not had a significant impact on the market. Therefore, we do not expect a serious increase in the price of sunflower oil," he explained.