• The milling, baking and flour products industry in Romania has been going through a period marked by structural imbalances in its relationship with large retailers for many years.
At the recent General Assembly of the Romanian Employers' Association in the Milling, Bakery and Flour Products Industry – BREAKING, from March 12, dissatisfaction with the commercial practices of large chain stores was once again brought to the forefront by manufacturers.
One of the most frequently reported issues concerns the very low purchase prices charged by retailers for bread and other fresh bakery products. In many cases, these prices do not fully cover production costs – which include raw materials, energy, labour, packaging and logistics specific to perishable products. The result is constant pressure on bakeries’ profit margins, sometimes leading to operational difficulties or even a reduction in production capacity. The sector, which remains essential for national food security and for maintaining a significant number of jobs, is thus faced with heightened vulnerability to the disproportionate bargaining power of large retail chains.
In this context, the Minister Agriculture and Rural Development, Florin Barbu, has repeatedly conveyed – including in dialogues with industry representatives – that intensive work is being done to identify fair solutions. Among the directions addressed are mechanisms for capping the commercial mark-up in periods of high inflation (above 5-6%), standardizing the mark-up on similar product categories, and limiting practices that excessively favor retailers' own brands. Although the measure capping the mark-up on basic foods (including plain white bread) has been successively extended and is in force until March 31, 2026, recent discussions aim to expand and refine these instruments to more effectively protect Romanian processors and producers.
Support requested from the authorities
A proposal from the industry, supported for years by associations such as ROMPAN, aims at the mandatory transparent display, on the shelf, of both the purchase price (or the relevant production cost) and the commercial mark-up applied by the retailer. The idea is simple and powerful from the point of view of informing the consumer: the citizen could clearly see how much goes to the producer and how much is the retailer's margin, allowing him to choose with knowledge and, possibly, to favor products that ensure fair remuneration for the short supply chain. A project in this regard was initiated and put into public debate by National Authority for Consumer Protection (ANPC) in 2025 – the regulatory order proposed that the mark-up be displayed next to the final price, with the same font, size and color, both in physical and online stores. Although the project generated mixed reactions (including objections from some retail associations, which cited possible implications for competition and European legislation), it remains a direction of major interest in the public and legislative debate.
More transparency
Beyond specific solutions, the real challenge remains finding a sustainable balance across the entire agri-food chain. Bread producers are not asking for privileges, but for fair competition conditions that allow them to continue their activity and invest in modernization – investments supported, moreover, by recent European schemes, such as DR-23, which allocates 165 million euros to the bakery sector for new units and modernizations.
The final consumer, who pays the shelf price, deserves transparency and quality products at reasonable prices. The Romanian producer, in turn, deserves a remuneration that covers its costs and allows it to develop. The retailer, as an essential link, has the role of ensuring accessibility and variety, but without fully transferring the risks and cost pressures to its suppliers.
Until the promised legislative solutions take shape and are effectively implemented, open dialogue between all parties – producers, retailers, authorities and consumers – remains the healthiest path. The bakery industry is not just a business: it is a pillar of food security and the local economy. It deserves attention and fair solutions, not just promises.
Article written by Gabriela Dan, Editor-in-Chief Arta Albă
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