Higher production costs, the end of the Bulgarian production season and reduced supply are among the main reasons for the increase in food prices. This was stated by the former Minister of Agriculture Kiril Vatev in the program “Offensive with Lyubo Ognyanov“ on NOVA NEWS.
According to him, all factors involved in the formation of prices have become more expensive, with fuels having the most significant influence. Additional pressure is exerted by the end of the period of seasonal Bulgarian production.
“The most important thing is the ratio between demand and supply. Demand has not decreased, but less production is offered“, explained Vatev.He pointed out that despite the good harvest, part of the production remained unharvested in the field. According to him, the reason is the decline in purchase prices, which made harvesting economically unprofitable for agricultural producers.
“They preferred not to incur additional costs, as they would sell their production below its cost price“, said Vatev.
Imbalance between producers and traders
As a serious problem, the former Minister of Agriculture highlighted the lack of a national logistics infrastructure that would ensure the movement of products from the producer to the consumer.
According to Vatev, there is a serious imbalance in the relationships between producers and traders. He noted that the market is already dominated by large retail chains and called on the state to intervene to ensure greater balance in trade relations.
Vatev acknowledged that to some extent the chains have reason to point out that Bulgarian production is not enough. According to him, it not only remains limited, but also continues to decrease due to the pressure on producers, which makes their work difficult and leads to the elimination of some of them.
Sources: nova.bg