Cap on retail mark-ups and quotas for Bulgarian produce under consideration

A new draft law on the supply chain for agricultural products and food proposes the introduction of quotas for Bulgarian produce in large retail outlets, as well as limits on trade mark-ups across the supply chain.

Under the proposal, at least 50% of the meat, eggs, honey, and sunflower oil sold in major retail chains would be required to originate from Bulgaria. The threshold would rise to 80% for dairy products, including milk, cheese and yellow cheese (kashkaval).

Retailers failing to comply with the proposed quotas would initially face a fine of €5,000, which would be tripled for repeat offences.

The bill also sets out maximum allowable mark-ups: 20% of the production cost for food processors; 10% of the purchase price for wholesalers; and no more than 20% of the purchase price for retailers with an annual turnover exceeding €10 million.

In parallel, the draft law includes a provision guaranteeing agricultural producers a minimum profit margin of 10%.