Bulgaria proposes fair price methodology for food products

The Bulgarian Ministry of Economy has proposed a new methodology to determine the ‘fair price’ of food products, such as cow cheese, to monitor retail margins. The formula considers both local Bulgarian market prices and European reference prices, allowing for a 10% deviation. The rules are intended to apply specifically to large retail chains, though no sanctions are currently planned for non-compliance.

Dairy processors have expressed mixed reactions. While the National Association of Dairy Processors views the move as a step in the right direction, industry representatives argue the formulas need refinement. Some processors suggest the fair price for cheese should be around 9 euros per kilogram, whereas the government's draft suggests approximately 8 euros. Industry members have also noted that retail markups can range between 20% and 80%.

Economists have identified a technical mathematical error in the draft project regarding how the average is calculated. Meanwhile, Dimitar Margaritov, former chairman of the Commission for Consumer Protection, stated that while the methodology is a good start for identifying inflated margins, it is not sufficient on its own to stabilize the market. The project is currently undergoing public consultation.