2. PROBLEMS AS DESCRIBED IN THE SURVEY SIGNIFICANT NUMBER OF AFOREME...

3.2. Problems as described in the survey

Significant number of aforementioned problems were confirmed by the survey. The described by respondents problems can be classified into three groups. The first group concerns the problems on production stage. According to expert opinion, organic products are produced in small quantities and poor products range. Moreover there is a lack of delivery’s regularity. These are some of the reasons for comparatively low availability of organic products in large retail chains in the country. As problems on production stage were mentioned also lack of motivation among producers to increase organic production due to low level of awareness, low demand for organic products and inadequate government support for organic production. Experts see as a problem and the insufficient number of control (certification) bodies and accredited laboratories for analysis of organic food. The problem of unavailability of the organic products in the country is confirmed in a consumers’ survey (Dzhabarova 2007). The survey states that supply of organic products on the domestic market is insufficient. Much of the respondents (31 %) indicated that they will buy other kinds of organic products, if they are available on the market and if they have the necessary quality. Consumers listed as products missing on the market eggs, meat and meat products, dairy products, bread and pasta, fish and fishery products. This result indicates that organic products are not offered at the required level of distribution or they can not reach the majority of users. Over 1/3 of respondents (36.36%) indicated that they will buy from all types of organic food, if they are available on the market. The second group of problems occur on distribution and retail stages. Experts opinion is that commercial organic products are not distinguished and organic produce is offered in the same place with the conventional products together, even with products containing genetically modified ingredients. In many cases this is result from the distributors’, wholesalers’ and retailers’ lack of knowledge for organic produce. All they need additional information and training for the nature of biological production and diversity of products than conventional products. At the same time, they believe that the distribution of organic products in the country is not well developed. Retailers ordered a small quantity which means ineffective logistics and high costs. The same problem is faced by the importer. The third group are problems on consumer’s level. Bulgarian consumers are not familiar with organic products and therefore the demand on the market is weak. In this respect, they need more information and training. Similar results show other conducted studies. Dzhabarova (2007) argued that the initial information about organic products is derived mainly from relatives, friends, colleagues (32.86%). The dominant role of mass media and advertising is stressed by 28.57% of the respondents. Like in many countries with a nascent market of organic products, mass advertising and personal contacts in Bulgaria are the best means to disseminate initial information. Others studies (Kozhuharov et al., 2004; Vassileva, Ivanova, 2003) show that the available information is insufficient. More information on the origin (37%), the composition of products (37%), as their advantages and benefits (26 percent) is needed. Production and certification’s rules, as well as the benefits of organic products need further clarification and promotion. Some consumers also stressed that they don’t find organic products in the shops. They don’t believe that there is a difference in quality and they don’t have information about the nature of organic products or have doubts about whether the products truly are organic. As a problem on this stage in the supply chain is defined food culture associated with the use of organic products in Bulgaria. Such a culture is not yet been developed and therefore the consumption of such foods is very small. The most important reason for consumers to buy organic products is associated with health and taste, while aspects of environmental and animal welfare are often secondary motives. All interviewed experts agreed that consumers associate organic products with a healthy lifestyle and nutrition. This indicator is very important (89.5% of respondents) for the implementation of organic foods, regardless of that according the requirements of European legislation is not correct to be stated that organic products are healthier than their conventional equivalients. Another problem is relatively high prices of organic products. Studies conducted in the EU and Bulgaria, indicated the reasons why consumers do not purchase organic products. The most important reason is that they considered the prices too high. According to the results of the survey (Dzhabarova 2007), presenting the relationship between frequency of purchases and the level of income, the majority of purchases are made by consumers with high incomes. Still few consumers in the country have the financial ability to purchase these products. In countries with developed market for organic products, despite the trend towards a gradual reduction of prices of goods with a organic origin they still exceed the prices of the conventional products. The main reason why organic products are more expensive is that the market is distorted. In the case of conventional agriculture, farmers don’t cover the costs of pollution by pesticides, water pollution and health, chemical and environmental damage associated with it. Costs are paid from whole society. The survey analyzed the opinion of respondents regarding the dependence of the price of organic products and the type of supply chain. Much of the surveyed experts (68.5%) (Figure 2) stated that the relationship between price and supply chain is “very strong” or “strong”. In their opinion, the reason is limited and small quantities in locations, which are distant from major markets. In generally shared view, the difference between production and selling price varies in range between 50% and 100%. This dependence is even stronger for imported products. One of the respondents is in opinion that the price of organic products is high, because of small production volumes, poor range and no competition. 50