Bulgaria Proposes Law to Boost Local Dairy and Meat in Supermarkets with Strict Price Controls
Source: dairynews.today
Bulgaria introduces a draft bill requiring large supermarkets to source significant portions of dairy and meat locally, imposing strict price controls.
A draft bill proposes that large retail chains in Bulgaria stock a significant portion of locally produced agricultural products. Specifically, the legislation requires that half of the meat, eggs, honey, and sunflower oil offered in these stores be Bulgarian. For dairy products such as milk, cheese, and other cheeses, the mandated local share rises to 80%. This bill on the supply chain of agricultural products and food has been reopened for public consultation after initial feedback.
Agriculture Minister Georgi Tahov first introduced the draft in March, followed by a preliminary consultation in June. The current version reflects adjustments requested by industry stakeholders, notably increasing the required share of Bulgarian dairy products from 50% to 80%. The bill also includes penalties for non-compliance, with fines reaching up to BGN 10,000, which triple upon repeated offenses.
The legislation sets limits on commercial markups: processors can add no more than 20% over production costs; wholesalers along the supply chain have a cumulative ceiling of 10% on purchase prices; and retailers with annual revenues exceeding BGN 20 million are limited to a 20% markup on purchase prices. Furthermore, the bill guarantees a minimum 10% profit margin for agricultural products.
The Council of Ministers will determine which food categories will be subject to these markup limits, though the criteria for this selection remain unclear.
However, representatives from the affected supply chains have cautioned that this regulation could lead to higher prices for other food items as retailers and producers seek to offset losses from the regulated products.
The public consultation for the bill will remain open until August 12.
Agriculture Minister Georgi Tahov first introduced the draft in March, followed by a preliminary consultation in June. The current version reflects adjustments requested by industry stakeholders, notably increasing the required share of Bulgarian dairy products from 50% to 80%. The bill also includes penalties for non-compliance, with fines reaching up to BGN 10,000, which triple upon repeated offenses.
The legislation sets limits on commercial markups: processors can add no more than 20% over production costs; wholesalers along the supply chain have a cumulative ceiling of 10% on purchase prices; and retailers with annual revenues exceeding BGN 20 million are limited to a 20% markup on purchase prices. Furthermore, the bill guarantees a minimum 10% profit margin for agricultural products.
The Council of Ministers will determine which food categories will be subject to these markup limits, though the criteria for this selection remain unclear.
However, representatives from the affected supply chains have cautioned that this regulation could lead to higher prices for other food items as retailers and producers seek to offset losses from the regulated products.
The public consultation for the bill will remain open until August 12.
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