Incentives for Cooperatives and New Digital Control: The Ministry of Agriculture's Strategy Against Fragmentation and the Shadow Sector

The government is planning a radical change in the management model of the agricultural sector in Bulgaria, aiming to unite small farms and strengthen control over food quality. According to the Minister of Agriculture and Food Plamen Abrovski, the key tool for the survival of small farmers will be the transition to a cooperative production model.

Economic Incentives for Association

Currently, Bulgarian agriculture is highly fragmented between industrial farms and numerous small holdings that lack market weight. To overcome this imbalance, the ministry is preparing a new Law on Cooperation, which will include:

• Tax Incentives: Possible VAT exemptions for producers organized into cooperatives.
• Infrastructure Support: Provision of state lands to expand the production bases of cooperatives.

The goal is to create a unified product that allows small producers to enter into direct competition with large retail chains by shortening the supply chain.

Digital Monitoring and the Fight Against the Shadow Sector

To stop the spread of low-quality products and limit the shadow sector, a large-scale electronic system is being prepared. It will allow full traceability of every product – from the first operator who puts the goods on the market to the end consumer. This will include the registration of all products produced or imported into the country.

Systemic Flaws in Control

The Minister criticized the activities of the Bulgarian Food Safety Agency (BFSA), pointing to cases of systemic oversight. As an example, he cited an incident involving five tons of spoiled butter that continued to be sold despite a signal being raised. According to Abrovski, the agency must move from a "reaction to signal" mode to a "regular risk analysis" mode and strict monitoring of repeat offender companies.

These changes are of direct importance to the average citizen, as they aim for greater market transparency and higher safety of the food products that reach the Bulgarian table.