Romania plans to cap price markup across the entire food industry
<p>A draft Emergency Ordinance inked by the Romanian Ministry of Agriculture, aimed at capping markups on agricultural and food products, fertilizers, animal feed, and pesticides, has drawn criticism from farmers' and retailers' associations. The proposed regulation, consulted by <a href="https://g4food.ro/surse-operatorii-economici-care-vand-alimente-fertilizanti-furaje-si-pesticide-obligati-sa-plafoneze-adaosul-comercial-de-la-5-la-50-sanctiuni-prevazute-amenzi-de-la-100-000-de-euro-pana-la-5-din/?mc_cid=938b7a58c4&amp;mc_eid=cd1f92f96c&amp;uord=lSYuk2eBg6ffxR%3D%3DLVpCIYqSYVbSNCT2R_2nnTDim2i0gITgm6irKF2gNYC2S6kiLhQb/XSFlVK7kFjMgIjEtnerWl1/WorAMojSXfT8R_/8lDf8jpB%3DiImqynexLV2CLYmVYV1J" rel="noopener" target="_blank">G4food.ro</a>, would impose a cap on markups between 5% and 50% for economic operators in the agri-food sector.</p>

<p>The draft ordinance, applicable to operators within Romania who trade in domestically produced or imported goods, was the focus of an October 22 meeting at the Ministry of Agriculture with minister Florin Barbu and representatives from the food processing sector. This preliminary discussion will be followed by further talks next week, as announced by the ministry on social media.</p>

<p>The Forum of Professional Farmers and Processors from Romania (APPR) expressed serious concern over the potential impact of this measure, warning that it could cause "serious and irreversible consequences on the rural economy and Romania's food security."</p>

<p>In an open letter to minister Barbu, as reported by <a href="https://www.zf.ro/companii/retail-agrobusiness/forumul-agricultorilor-procesatorilor-profesionisti-romania-appr-22525724?mc_cid=938b7a58c4&amp;mc_eid=cd1f92f96c" rel="noopener" target="_blank">Ziarul Financiar</a>, APPR highlighted that limiting markups could reduce farmers' ability to invest in new technologies, impacting their competitiveness in the long term.</p>

<p>Similarly, the Association of Large Retail Chains in Romania (AMRCR) cautioned that capping markups across all food products could severely affect the retail sector, according to <a href="https://www.zf.ro/companii/marii-retaileri-plafonarea-adaosurilor-comerciale-la-toate-22524855?mc_cid=938b7a58c4&amp;mc_eid=cd1f92f96c" rel="noopener" target="_blank">Ziarul Financiar</a>.</p>

<p>Minister Barbu has been actively meeting with associations representing food producers as he drafts the ordinance to extend price caps on all agricultural and food products reaching store shelves, raising concerns that the policy could destabilize the industry.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: <a href="https://www.dreamstime.com" rel="noopener" target="_blank">Stokkete/Dreamstime.com</a>)</em></p>