The sectoral analysis of food, which was the starting point for the price analysis, showed extremely severe structural deformations in the agricultural goods market in Bulgaria. This was stated at his hearing in parliament by Rosen Karadimov, Chairman of the Commission for the Protection of Competition (CPC), in connection with the speculative increase in prices of some goods and services. The hearing was requested by the PG "DPS-New Beginning".
According to him, agriculture, the production sector, is facing a catastrophe. The distortions are not the result of speculation now, but of a 35-year accumulation, lack of vision and management policy, Karadimov emphasized.
Over the past four years, milk production and production of dairy products have fallen by 25%, and the import of milk and products has increased by 42%. The sectoral analysis, which is long-term, will further analyze the measures, but what we were interested in in the interim report were the price levels for consumers, he specified.
Based on the powers of the CPC, when we established the conclusions of the analysis, we had two possible courses of action - to enter by force, with all the powers of the commission, into some of the large retail chains. This approach would be harassment for business and would not solve the problem, because the distortions are throughout the chain. We preferred dialogue and self-regulation, we held the necessary meetings, discussions with industry organizations, with traders, processors, retail chains, explained the chairman of the regulator. As a result, according to him, in the sensitive segment of essential food, large retailers behave extremely correctly, we are witnessing frozen prices, discounts and very large promotional campaigns.
We have found that large retailers maintain the same price levels and this is normal throughout the country, but purchasing power in different regions is different, Karadimov noted.
The main conclusion in the sectoral analysis by the commission's competence is not directed at the consumer, but at the producer, and there things are dramatic, he reported. The discounts that the producer gives to the retail chains are in volumes that “lower“ it above or below the cost of its production. The result is a lowering of quality or the disappearance of entire subsectors, noted Rosen Karadimov. That is why the commission has sent the entire sectoral analysis to the parliamentary groups.
For the first time, we are putting “very heavy” the issue of dairy production in Bulgaria, added the chairman of the regulator. Within the limited powers of the CPC regarding final price levels, we managed to discipline the market based on dialogue and powers, he emphasized.
Currently, an analysis of the so-called. traditional trade is also underway. In it, the supplier, not the trader, is in a strong position. That is why we have sent over 400 letters to various small stores with the main emphasis on how many times the supplier has raised the price, including for December and January, Karadimov explained.
The CPC has also started a sectoral analysis in the pharmaceutical sector. There are also enough signals of sharply increased prices there in October, November, December of last year, the chairman of the CPC emphasized.
Without action by the executive and legislative branches, these problems will not be solved, emphasized Rosen Karadimov.
For the first time, the entire agricultural sector, milk, food, and processing industries, stood behind the CPC, he also said.