​All major commercial chains have agreed to take part in a voluntary agreement to lower the price of milk as a result of discussions initiated by the Competition Council, and will negotiate with every processor they work with in the coming period, the competition body announced on Friday.

Thus, a reduction of at least 20% of the shelf price will apply to milk of Romanian origin, which currently costs more than 7 lei/liter, not included in any promotion, and will be shared between retailers (minimum 10%) and processors. (minimum 10%).

• “During May we will see a significant reduction in fresh milk prices as retailers have confirmed their participation in the voluntary agreement.
• The implementation of this measure in all stores may take several days, given that contracts with each manufacturer must be renegotiated and existing stocks used.” – said Bohdan Chiritsoyu, President of the Competition Council.

A voluntary agreement between retailers and processors to reduce the price of fresh milk for consumption has been agreed for six months and is to take effect from May 1, as was decided at a meeting with Prime Minister Nicolae Chuke, representatives of farmers, food processors, the Association of large retail chains in Romania and the Association of Romanian Goods Distribution Companies.

• “We expect consumption to increase in the six months that the agreement is in effect. In addition, economic forecasts indicate that inflation will decrease, so we will not see such large increases in food prices again.” – added the president of the Competition Council.

The antimonopoly authority was involved in the implementation of this agreement to direct interested companies to participate in order to avoid the risk of violating competition rules. Thus, the deal must take place within established parameters: negotiations must be bilateral between each supplier and each retailer, with the latter having the ability to apply discounts of at least 10%.

The Competition Council will monitor this initiative together with responsible agencies such as the National Consumer Protection Authority (ANPC) using the Food Price Monitor, an online platform that displays food prices.

Depending on the results of the monitoring, the Competition Council will discuss with Government representatives what measures are needed.

• Read more: How the price of milk on the shelf will be reduced for 6 months from May 1: To the attention of Chuke and Daea at the government meeting, the Competition Council comes with explanations