The 51% Law

President Klaus Iohannis has promulgated the law that obliges the big retail chains to have on their shelves Romanian produce accounting for 51% of the total foodstuffs in their stores and also establishes stricter labeling rules.

Daniela Budu, 12.07.2016, 14:29

According to a law recently promulgated by Romanias President Klaus Iohannis, at least 51% of the foodstuffs sold by hypermarkets in Romania will have to be produced by local producers.

The law, which is to come into force these days, stipulates that the big retail chains in Romania must have on their shelves foodstuffs from the so-called ‘short supply channel, that is from a local or regional source. According to the new law, retailers must sell meat, eggs, dairy products, fruit, vegetables and honey from the domestic production.

Exceptions are exotic fruit and vegetables, as well as seasonal produce. The Minister of Agriculture Dan Irimescu has stated that the new law mainly targets the fruit and vegetable sector, where Romania is faced with massive imports. The Chairman of the Chamber of Deputies Agriculture Committee Nini Sapunaru believes that the law is a barrier in the way of those who add huge markups to their products.

Nini Sapunaru: “There are chains that have already held meetings with farmers and have announced they want to purchase Romanian produce, that they would like to start concluding contracts with them, therefore things are changing.

The enforcement of the law has been postponed several times, especially because of the reluctance of employers associations, who have opposed many of its provisions. The MPs in the Agriculture Committee have explained that the law makes no strict reference to Romanian products, and therefore it does not run counter to the single market principles.

Employers however are worried and say that these provisions, which, they say, break the EU legislation, will affect the activity of modern retailers in Romania. Retailers also say that this will by no means solve the issues facing the Romanian producers of foodstuffs, it will only severely affect the food trade balance.

The law regarding the selling of foodstuffs limits consumers freedom to chose the best products at competitive prices, reads a communiqué issued by the Big Retailers Association in Romania. The members of this association believe that the law was drafted against the big retailers and, despite public declarations, it guarantees no support for the local producers or Romanian products.

In fact, the Association believes that the law limits consumers freedom of choice. From now on, the main objective of any retailer will no longer be to satisfy their customers, but to observe the very restrictive terms imposed by the law with regard to payments or commercial services, because otherwise the sanctions for failure to observe them can go as far as closing the stores, the association has also stated.