Retail Food Markups in Bulgaria Reach Between 50% and 90%, Trade Unions Data Shows

The Confederation of Independent Trade Unions in Bulgaria (CITUB) has reported that food markups in Bulgarian shops have reached levels between 50% and 90%, according to a comparative study of prices across EU member states. The survey, which examined prices in over 600 stores across the country, found that basic food products – such as milk, flour, cheese, oil, and rice – are among the most expensive in Bulgaria compared to the rest of the European Union.

At the same time, the purchase prices of raw materials, such as milk, remain extremely low. At a dairy plant near Varna, a litre of milk is bought for around 1 BGN.

Zlatina Georgieva, farmer: “For me, fresh milk is being purchased below production cost — between 0.89 and 1.10 BGN per litre at most.”
According to Georgieva, large retail chains dictate market conditions and determine profit margins at their own discretion.

“A litre of milk sells for around 3.50 BGN or more. Unfortunately, it’s the retailers who set the rules and the prices,” she added.

According to Zlatina Georigeva, it is the big traders who dictate the market conditions and form their profits at their own discretion.

For the first time, CITUB compared food prices in Bulgaria with those in other EU countries. The findings show that one-third of the goods in the “small consumer basket” are most expensive in Bulgaria. With the minimum wage, a Bulgarian can afford this basket 9.6 times, compared with 16 times in Romania and 30 times in Germany.

Many consumers say they feel the price increases daily.

Georgi Tomov: “Some prices have risen by as much as 200%. Peaches that cost 2–3 BGN last year are now 7–8 BGN.”

Yordanka Todorova: “There are a thousand committees supposedly monitoring prices, but I don’t see what they’re watching — it’s simply not true that there’s no increase.”

Experts note that markups in Bulgaria are significantly higher than the European average, where retail margins rarely exceed 30%.

Plamen Dimitrov, CITUB President: “The difference between the wholesale and retail prices in the major supermarket chains is between 50% and 90%, based on data from the retailers themselves. Whether that’s a fair market price, anyone can decide — but in our view, it’s definitely not.”

Prof. Violeta Dimitrova, University of Economics – Varna: “Bulgaria’s small market is also part of the problem. To maintain sales volumes, chains are forced to keep higher profit margins.”

CITUB found differences of 23% to 71% between wholesale and retail prices, with markups for cheese, eggs, tomatoes, and potatoes exceeding 50%.

Plamen Dimitrov: “What people expect now are not just numbers, but real action and sanctions. Only then will citizens believe there’s a functioning state in this country.”

Prof. Violeta Dimitrova: “In the UK, for instance, a dedicated government unit monitors relations between producers and retailers annually. Producers can report unfair practices or concerns, ensuring chains regulate their behaviour.”

Following CITUB’s initiative, the Commission for Protection of Competition (CPC) has launched a detailed investigation into the dairy products market in Bulgaria.