Food Prices: Commission for Protection of Competition Reports High Retail Markups in Stores

Extremely high retail markups have been recorded in Bulgarian stores, with the steepest increases observed for dairy products. According to an interim sectoral analysis by the Commission for Protection of Competition (CPC), milk carries markups of up to 77%, cheese up to 82%, and yellow cheese (kashkaval) up to 91%. The study covered over 500 retail outlets nationwide.

The research examined the entire supply chain, from producer to retailer, revealing that the most significant distortions occur in the milk and dairy sector. Between 2020 and 2024, domestic production of raw cow’s milk fell by 25%, while imports of milk and dairy products increased by 43%.

The analysis also highlighted disparities in purchasing power among consumers in different cities, even within the same retail chains. For instance, annual income per capita in Sofia is €55,000, compared with just €7,122 in Vidin (Northwestern Bulgaria).

Rosen Karadimov, chairman of the CPC, commented: “The problems are very serious, which is why we began by examining production. We cannot simply blame retailers at this stage, because over the past 25 years, the state has lacked an adequate policy in the dairy sector. Based on the data we currently have, the commission proposes initiating a broad public dialogue on self-regulation within this sector.”