Saying that basic food products in Serbia are excessively expensive is neither a groundbreaking discovery nor news. Although the standard of living in the country has undeniably improved, only the upper and upper-middle classes, whose members are relatively few, can afford the luxury of shopping for groceries without worrying about promotional discounts or carefully considering whether they can do without a certain item until the next paycheck and how purchasing it might affect the household budget.
Supporting the argument that food in Serbia is expensive is data from the National Bank of Serbia, which indicates that the average wage covered 94% of the average consumer basket in the first seven months of last year. A report from the Ministry of Internal and Foreign Trade for January 2024 shows that the cost of the minimum consumer basket was 52,775 dinars, while the average consumer basket cost 102,044 dinars. By September, the cost of the minimum consumer basket had risen to 53,967 dinars, and the average to 104,330 dinars.
On the other hand, data from the Statistical Office of the Republic of Serbia states that the average salary in November was 100,738 dinars, while 50% of employees earned up to the median salary, which in that month stood at 77,830 dinars. Experts in Serbia highlight numerous reasons for the high prices of basic foodstuffs. They point out that inflation has had a significant impact, not only in Serbia but worldwide, following the start of Russia’s military intervention in Ukraine in February 2022.
However, domestic experts believe that the primary reasons for high food prices and other essential goods should be sought in excessively high retail margins, the influence of import lobbies, profit-driven distributors, and cartel-like agreements between retail chains. The latter, in particular, has led to food prices in Serbia being dictated by implicit agreements rather than a free market, which should ensure fair and realistic pricing.
Prices of certain food products in 2018 and 2025 in Serbia
For context, the Competition Protection Commission launched proceedings against four retail companies – Delhaize, DIS, Univerexport and Mercator – after monitoring the prices of 35 selected products for several months and determining that the prices of these products were identical across all retail chains. In August 2024, the commission compared the prices of 45 products from the companies under investigation, adding another retailer to the analysis. The Special Anti-Corruption Department of the Higher Public Prosecutor’s Office in Belgrade also responded to the case by opening a preliminary investigation.
Given all these factors, it is hardly surprising that consumers are outraged by the high prices—especially of food—and that Serbia, for the first time in its history, faced a boycott of five major retail chains on 31 January.
The Efektiva Consumer Protection Association called on shoppers in Serbia to boycott the five largest retail chains due to “exorbitant” prices. Efektiva stated that the boycott was intended as a warning to test consumer strength, as well as the response of the government and retail chains. On that same day, consumers in Montenegro, Bosnia and Herzegovina, and North Macedonia also staged protests against high grocery prices.
These protests were inspired by a highly successful example from Croatia, where dissatisfied consumers launched a movement against retail chains on 24 January, which continues in some form even now.
A nationwide one-day boycott of all stores in Croatia also took place on 31 January. Additionally, the online platform “Halo, inspektore” called for a seven-day boycott of retail chains, arguing that their prices in Croatia were higher than in other EU countries. The platform also urged a week-long boycott of three products that were priced higher than in the EU like carbonated drinks, bottled water, and dishwashing detergent. Employees in boycotted stores were encouraged to slow down their work during the protests.
For context, the 24 January one-day boycott in Croatia was initiated by the Facebook group “Halo, inspektore”, backed by the European Centre for Consumer Excellence and supported by consumer protection organizations, trade unions, and political parties. At the time, Croatian Prime Minister Andrej Plenković acknowledged the boycott as an important and well-articulated message from citizens that would be taken into account. Data from the Croatian Tax Administration showed that the total number of receipts issued in retail stores on Friday, 24 January, was 44% lower than on the previous Friday, while receipts across all sectors fell by 29%, with total revenue dropping by 36%.
In response to the boycott, one retail chain in Croatia announced price reductions on more than 1,800 products. Importantly, the Croatian government also expanded the list of price-capped products to 70 items.
Unlike in Croatia, the Tax Administration of the Republic of Srpska announced that the boycott of retail chains on its territory had failed, as turnover on 31 January actually increased by nearly one-third instead of declining, despite calls for citizens to boycott shopping in retail chains.
Economist Aleksandar Stevanović said that inflation, both domestic and imported, undoubtedly affects the high prices of basic food products in Serbia. However, he noted that the price level exceeds the overall inflationary impact.
“It is quite clear that high retail margins play a significant role in Serbia’s pricing. However, retailers are not the only ones driving prices up – importers and distributors also contribute to the situation. As a result, we end up with high prices in stores, which causes consumer dissatisfaction,” he explained.
He added that there is reasonable suspicion of cartel-like agreements, which is currently the subject of an official investigation into several major retail chains in the country.
“It is not for me to determine whether monopolies have been formed and prices have been fixed; that is for the relevant authorities to investigate and establish any liability. On the other hand, I have every right to be sceptical, and I certainly feel uncomfortable, when I shop in Serbia and then in another country, say somewhere in the Mediterranean, only to find that it is more cost-effective for me to buy groceries abroad than at home,” Stevanović said.
Dejan Gavrilović, president of Efektiva, told NIN weekly that he was satisfied with the response to the boycott of five major retail chains in Serbia, as there were noticeably fewer shoppers in those stores that day than usual, with some stores being completely empty.
“As a result, it is fair to say that participation was massive, demonstrating consumers’ outrage over unjustifiably high prices. Proof of this is the footage taken by citizens, showing empty stores. I also personally confirmed this when I visited a supermarket in Belgrade, where only one checkout was operating and just a handful of shoppers were present. I also visited another store that is usually crowded, but during the boycott, only two checkouts were open, and there were very few customers inside,” he said.
He underlined that Efektiva currently doesn’t have concrete data on the impact of the boycott and that this information will only be available once the Tax Administration releases its official findings.
“The Tax Administration is the only entity that can provide valid information about the boycott, as was the case in Croatia and North Macedonia. What we do know at this moment is that in some stores, sales dropped by around 70% during the boycott. However, this cannot be considered the average decline, as it is certain that turnover did not fall by the same margin in every boycotted store,” he explained.
He stated that the protest was entirely justified, as food and essential goods prices in Serbia are exceptionally high—higher than in neighbouring countries.
“There is a clear paradox: some items produced in Serbia are cheaper in neighbouring countries than they are here. Likewise, in Slovenia and Croatia, where the average salary is higher than in Serbia, food prices are actually somewhat lower than ours,” Gavrilović pointed out.
The president of Efektiva gave several reasons why prices in Serbia are so high, adding that the situation also benefits the authorities.
“The primary reason lies in excessive retail margins. The fact that retailers frequently offer so-called promotional prices only confirms that retail margins are too high and that these ‘discounted’ prices are actually the real ones. Prices are also inflated due to the monopolistic position of large retail chains, which coordinate their pricing. It is evident that high prices also suit the government for the simple reason that higher prices mean significantly greater VAT revenue,” Gavrilović concluded.
(NIN, 10.02.2025)
https://www.nin.rs/ekonomija/vesti/67837/potrosaci-sa-prostora-bivse-jugoslavije-bojkotovali-trgovinske-lance
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Publish date : 2025-02-10 07:29:00
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