Prices of milk and dairy products have risen by nearly 50% in recent 4-5 years

The Commission for Protection of Competition has initiated proceedings to establish whether there are cartels that have led to an increase in the price of basic foods, including milk and dairy products. The decisions were taken in March after an inspection, and the proceedings themselves are against retail chains, the Association of Milk Processors in Bulgaria, and the Union of Poultry Farmers.

Milk and dairy prices are up by mere pennies in terms of wholesale prices. This is not the case in respect of prices in the large retail chains, where they reach the final consumer. That is why the Bulgarian Food Safety Agency and the National Revenue agency (NRA) have launched checks. According to the branch organisations, this will not produce results. They called for the intervention of the Commission for Protection of Competition.

In the countryside, the well-known Bulgarian proverb "You have a cow, you drink milk" may be valid, but in cities you have to buy milk and its prices, along with those of dairy products, are a growing concern.

"We buy because we still can, but in any case consumption is reduced."

"Of course I notice because I shop all the time. I just buy smaller amounts."

"It's not very pleasant, but you have to reduce consumption," consumers say.

Milk and dairy prices have risen by nearly 50% in the recent 4-5 years, statistics show. The food safety agency has no relation to them. Therefore, according to the branch organisations, their inspection will not produce results.

The price is determined by the raw material, transport, production and the commercial mark-up. It is the retailers' mark-up, according to the trade organisations, that creates the large difference between the purchase price and that for the final consumer.

The situation is the same as in February. The Commission for Protection of Competition must intervene. There is an oligopoly at the final sales stage. Cheeses and yellow cheeses are still sold at double the price, which are bought at 12-13-14 BGN from producers and sold at the final price of 27-28-29 BGN in shops," said Vladislav Mihailov, chairman of the National Association of Dairy Processors.

Prices on the European market also affect those in the country.

"The Bulgarian raw milk price is dependent, it goes in the same graph with the raw milk price in Europe, in particular in Central Europe. We are closer to them. So we cannot say that processors here are deliberately pressuring raw milk producers. Here it is all about the quantity and quality on the market," said Simeon Prisadashki, deputy chairman of the Association of Dairy Processors.

Checks by the fod safety gancy and NRA are continuing, and today major retail chains contacted by BNT did not want to comment on the issue. We have asked the Commission for Protection of Competition for comment to find out how far the checks they started in the spring have gone and what attitude they will take now. They said that at this point in time 3 cartel proceedings have been initiated for price gouging. The results of these are not yet clear.