From Farm to Shelf: How Retail Chains Inflate Food Prices in Bulgaria

Society | October 16, 2025, Thursday // 15:10
Bulgaria: From Farm to Shelf: How Retail Chains Inflate Food Prices in Bulgaria

A new analysis by the Confederation of Bulgarian Trade Unions (CITUB) has revealed that food markups in Bulgarian stores often reach between 50 and 90 percent, far exceeding typical European levels. The findings come from a comparative study of over 600 retail outlets across the country, comparing prices of essential goods with those in other EU member states. The results show that Bulgaria ranks among the most expensive in the bloc for basic foods such as milk, flour, cheese, oil, and rice.

According to CITUB, the cost difference between raw materials and final retail prices is substantial. For example, dairy producers are paid around 0.89 to 1.10 leva (0.46 to 0.56 euro) per liter of milk, yet consumers often pay at least 3.50 leva (1.79 euro) or more for the same amount in stores. Farmer Zlatina Georgieva from the Varna region said that this purchasing rate is below production costs, accusing large retailers of dictating market prices for their own profit. “Unfortunately, the trader sets the rules and determines the price,” she noted.

The union’s study marks the first time such a comparison has been conducted on a national level. It found that one-third of items in the small consumer basket are most expensive in Bulgaria compared to other EU states. With the minimum wage, a Bulgarian can afford this basket only 9.6 times, compared to over 16 times in Romania and 30 times in Germany. Shoppers across the country continue to feel the strain. “Some prices have gone up by 200 percent,” said consumer Georgi Tomov. “Peaches that were 2–3 leva (1.02–1.53 euro) last year now cost 7–8 leva (3.58–4.09 euro).” Another customer, Yordanka Todorova, criticized the lack of effective oversight, saying: “There are thousands of commissions supposedly monitoring prices, but nothing changes.

Experts highlight that average European markups rarely exceed 30 percent, while in Bulgaria, the difference between wholesale and retail prices reaches as high as 71 percent. CITUB President Plamen Dimitrov said that margins in large retail chains range from 50 to 90 percent, calling the situation “categorically unfair.” He emphasized that these figures are based on the chains’ own data.

Professor Violeta Dimitrova from the University of Economics in Varna explained that the relatively small Bulgarian market also contributes to higher margins, as chains rely on elevated markups to maintain profitability. She added that countries like the United Kingdom regularly monitor relations between producers and retailers through dedicated government units that track unfair practices and encourage more balanced cooperation.

Following CITUB’s initiative, the Commission for Protection of Competition has launched an investigation into the dairy sector to assess the fairness of pricing practices.

Meanwhile, economist Georgi Vuldjev from the Expert Club for Economics and Politics warned that Bulgaria is nearing a fiscal breaking point. In an interview with the Bulgarian National Radio, he said that “we have already used up all flexible tools for managing public finances” and that the government faces a difficult choice, either cutting expenditures or raising taxes.

Vuldjev cautioned that Bulgaria risks exceeding the three percent budget deficit threshold, adding that excessive growth in current spending has strained the fiscal framework. “For five years, alongside the political instability, we’ve been moving toward a public finance crisis,” he noted, though he acknowledged that the country’s solid economic base from the past two decades has so far prevented an acute collapse.

If the current government falls, the budget process will likely be delayed until a new parliament is in place, Vuldjev warned. He also said that while tax revenues remain strong, they are still insufficient to cover growing expenditure needs, underscoring the importance of a more prudent and well-planned wage policy.

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Tags: Bulgaria, prices, euro

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