site.btaAgricultural Producers Demand Guarantees to Ensure Access to Large Retail Chains

Agricultural producers demanded legal guarantees to ensure their products are sold by large retail chains and agreed on the need for a ceiling on markups at a roundtable on the problems with food prices and legislative solutions, organized by BSP - United Left.

National Assembly Chair Natalyia Kiselova opened the roundtable by raising the issue of food security.

Representatives of branch organisations and associations in the agricultural sector related to fruit growing, dairy farming and livestock farming demanded measures to ensure the elimination of dumping practices and their access to the retail chains. BSP-United Left has tabled a bill to cap markups on 70 staple products. In the course of the discussion, different opinions were expressed about this idea.

Vladislav Mihailov, Chairman of the National Association of Dairy Processors, said that chains operate with a markup of between 80 and 110% when selling dairy products. “We fully support limiting the markup at the last stage of sale,” Mihailov said.

Mariana Miltenova, Chair of the Bulgarian National Horticultural Union, noted the high VAT rate on foods in Bulgaria at 20%, while in neighboring countries it is lower. “We are in favour of a ceiling on markups,” she said.

Boyko Sinapov, of United Bulgarian Livestock Breeders, said that producers and consumers were the worst sufferers. He said that raw milk is purchased at BGN 0.80 per litre and that the only profit is in the chains.

Dimitar Zorov of the National Association of Milk Processors is also in favour of a ceiling on markups. If a 30% markup is introduced, then the consumer will feel about a 20% reduction in prices.

Atanas Vassilev, Chairman of the National Association of Bulgarian Winegrowers, proposed to establish a Bulgarian chain that would guarantee access of Bulgarian producers and that would be competition to the large retail chains. The big chains stop stocking and promoting products, and exclude Bulgarian producers they have financial power.

Tsvetan Tsekov, Chairman of the Fruits and Vegetables Branch Chamber, said that over 80% of  Bulgarian produce is produced by members of their chamber. When the chains announce a 50% promotion, it is also at the expense of the producer, as larger quantities are negotiated with the growers, the sale of which should also bring them more profit. The problem, he said, was "arm-twisting" in view of the prices of products from Poland and the Netherlands. He insisted that their market presence in retail chains should be guaranteed.

Former agriculture minister Kiril Vatev said that pricing is currently reversed - instead of moving from the field to the shelf, it is the other way. With markup and price control this cannot happen. The only way is to enforce clear and definite supply rules along the agri-food chain.