Investigations into Possible Cartel Practices in Bulgarian Dairy Pricing

There is a strong possibility of cartel practices in dairy pricing, according to Plamen Dimitrov, President of the Confederation of Independent Trade Unions in Bulgaria (CITUB). At a meeting in Ruse, Dimitrov highlighted that the Union has been closely monitoring wholesale and retail prices of essential goods. He pointed out that the markups between wholesale and retail prices often range from 50% to 100%, which he described as 'scandalous and indicative of non-market behaviour'. Retail chain prices are reportedly 2% to 12% higher than those in local shops, despite both purchasing from wholesale exchanges. This trend, observed over three months in over 600 outlets across 80 municipalities, has prompted CITUB to submit observations to the National Revenue Agency and the Commission on Protection of Competition (CPC) in June.

A sectoral analysis focusing on dairy is underway, expected to conclude by the end of September. Should findings confirm these practices, Dimitrov insists on specific decisions and sanctions from the CPC. Additionally, Dimitrov commented on Bulgaria's wage landscape, noting that the minimum wage will rise from BGN 1,077 to BGN 1,213 (EUR 620) starting next year. He projected that if Bulgaria mirrors the Baltic post-eurozone trend, the average wage might reach EUR 3,200-3,300 within a decade, up from about EUR 1,250. Nevertheless, CITUB aims for an annual wage growth of at least 10% to 15% to achieve these milestones.