The discussion in the budget committee was quite meaningful, but the law in itself will not lead to a freeze in prices. It is part of a complex of measures that I hope will be taken. This was said in the program “Face to Face“ on bTV by the chairman of the Commission for the Protection of Competition (CPC), Rosen Karadimov.
“Progressive Bulgaria“ has submitted a bill that should stop the price increase. To this end, the bill provides for new powers for the CPC and the CPC.
“According to these legal powers, the functionality and powers of the regulator, such as the CPC, and of the control bodies, such as the CPC, are increased. This distinction is very important“, explained Karadimov.
According to him, based on the sectoral analysis they conducted back in December last year, the problems are so deep that a legislative act alone cannot solve them if it is not coordinated with additional legislative initiatives in the “Food“ sector and with managerial actions of the executive branch.
“There is an element of speculation, there is an element of psychology, there is an element of subjective factors in prices. But our sectoral analysis showed something that is ominous - from 2020 to 2025, the number of farms raising mother cows decreased by 66%. The number of farms raising mother sheep decreased by 67%. The number of farms that raise goats has decreased by 70%, Karadimov explained.
The Chairman of the CPC explained that this means that Bulgaria does not have food security. “This means that everything we eat is imported. And we practically have no control over its pricing“.
“This is one of the objective factors that show that in order to solve these problems, accumulated over decades, a comprehensive policy for agriculture in Bulgaria, in the food sector, is needed, stimulating cooperatives, stimulating short supply chains, stimulating traditional trade“, said Karadimov.
According to him, the function of the CPC is not aimed at the final price of the product. “It is much more important and more invisible. These are the relations between the producer and the chain. Because this is not visible, but it has very far-reaching consequences. If we are talking about a 90% markup that the retail chain makes, its structure is more important. And half of it is at the expense of the producer“.
“The consumer should know that in the long term this trend is more dangerous. It leads to the depopulation of regions, the deaths of animals, the liquidation of an entire sector. The dairy sector in Bulgaria is in a critical situation. Things are dramatic with fruits and vegetables“, believes Karadimov.
Karadimov shared that the markup that a chain puts on a kilogram of Gouda is 25%. “The markup that is calculated for Bulgarian sheep's cheese is 100%. This does not come from the whim of the chain, but because the Gouda producer is so strong in his contractual relations with the chain that he sets the conditions“.
“We have flooded the market with a rather liberal acceptance of the so-called modern trade. I do not want to speak badly against them. They are key in terms of trade turnover at the moment. But the producer has nowhere to go. There is no alternative“, said Karadimov.