The Bulgarian Commission for Protection of Competition (CPC) has released a comprehensive sectoral analysis revealing significant structural distortions across the country’s food supply chain. The study, which examines competition from production to retail, forms the basis for upcoming public consultations that may lead to administrative and regulatory measures aimed at improving market conditions.
CPC Chairman Assoc. Prof. Rosen Karadimov stressed that the analysis is intended to support constructive dialogue rather than single out particular market participants. According to the report, vertically integrated structures in production, processing, wholesale, and cross-border trade have a direct impact on competition at the retail level.
Presenting the findings, CPC member Zhelyo Boychev noted that the most severe distortions appear in the supply chain for milk and dairy products. Between 2020 and 2024, Bulgaria experienced a 25% decline in raw cow’s milk production, an 8% drop in fresh milk, and decreases of 9% for cheese, 14% for yellow cheese, and 17% for eggs. Over the same period, imports of milk and dairy products rose by 43%. The sector is highly concentrated, prompting the CPC to initiate a review of past merger approvals.
The report identifies several factors worsening conditions in production and processing: the absence of national quality standards, insufficient institutional oversight, high production costs, and labor shortages. The analysis also covers the geographic distribution and pricing policies of major retail chains.
Despite Bulgaria having some of the lowest regulatory barriers in the EU for opening and operating retail outlets, regional disparities persist. The newly presented “competitive map” highlights strong competition in major cities like Sofia and Plovdiv but limited presence of retail chains in other regions, contributing to imbalances. Although price levels are broadly similar across the country, purchasing power varies significantly — from €55,000 per capita in Sofia to €7,122 in Vidin.
The CPC reviewed the pricing policies of ten major retail chains between June and August 2025, finding no evidence of coordinated speculative price increases related to the introduction of the euro. However, the study reports extremely high trade markups, reaching 77% for milk, 82% for cheese, and 91% for yellow cheese. According to the Commission, such markups — especially when combined with substantial supplier discounts — risk distorting competition by placing pressure on producers, restricting pricing freedom, and reducing profitability.
The interim report recommends promoting cooperation among market participants, developing shorter supply chains, introducing national quality standards, strengthening institutional controls, increasing transparency in retail practices, and supporting the processing sector.
The CPC will now conduct in-depth investigations in three key areas: retail market structures in economically weaker regions, pricing and trading practices between suppliers and retailers, and the production, processing, and trade of milk and dairy products.
Karadimov emphasized that the Commission hopes the report will encourage voluntary self-regulation. However, if unfair trading practices, abuse of dominance, or problematic concentrations are identified, the CPC stands ready to launch formal proceedings.