Only 18 out of 23 milk processors, or 78%, are currently taking part in a temporary voluntary agreement to reduce the price of milk and are already initiating a review of their contracts with traders, according to data analyzed and presented on Wednesday by the Competition Council. .

We remind you that the voluntary agreement, agreed for 6 months from May 1, provides for a reduction of the price on the shelf by at least 20% and will apply to milk of Romanian origin that costs more than 7 lei/liter, will not be included in any promotion and will be distributed between retailers (minimum 10%) and processors (minimum 10%).

• “It is an important step that since the first day 78% of processors have confirmed their participation in the agreement together with all commercial networks, and I am convinced that this number will increase in the coming days” – said Bohdan Chiritsoyu, President of the Competition Council.

Why are some price discounts less than 20% or not yet available?

The situation analyzed by the Competition Council shows that not all processors and retailers participating in this agreement reduced prices by at least 20%.

Thus, from the information collected by the Competition Council from the Price Monitor platform, it follows that in the first two days after the agreement entered into force, prices on the shelves of Romanian milk have already decreased by 1.5%. fat and by 3.5%.

There are situations where discounts are lower because the renegotiation of contracts between retailers and processors has not been completed.

• “The fact that this is a voluntary agreement gives more flexibility to take into account the specific situation of each company, so retailers and processors can also apply discounts of more than 20%, as we have seen in some chains for certain brands of milk.
• I think we will see a price reset in the next few days as contract reviews are completed and available inventory is depleted.
• It should also be taken into account that if a certain type of milk was on sale, so it already had a reduced price, no further discount will be applied to it.” the President of the Competition Council also stated.

We remind you that the voluntary agreement between retailers and processors to reduce the price of fresh milk for consumption was agreed upon at a meeting with Prime Minister Nicolae Chuke, representatives of farmers, processors in the food industry, and the Association of Large Retail Chains of Romania. and the Association of Distribution Companies of Goods from Romania, for a period of six months, starting on May 1.

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

The Competition Council was involved in the implementation of this agreement to guide interested companies to participate so that they would not risk breaching 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%.