Impact Assessment of Regulation: The Case of Milk Farms in Bulgaria

Abstract

In 2007 Bulgaria became a member of the EUand the milk processing companies were allowed to use raw milk, which does not meet the European standards in respect to quality, and to produce only for the Bulgarian market. After an extension of one year of the transition period from 2015 till the end of 2016 the sector is subject to new requirements and procedures for control and licensing. For several years an approach for regulation has been looked for, that could transform the cow farms into ones that meet the criteria for safety production and to develop the national milk processing industry. The aim of the paper is to analyze the results from the regulations that have been applied in the country since the beginning of 2017 in the milk industry and the executed impact assessment. It studies the impact assessment significance and the presence of information asymmetry, paternalism and regulation capture in the sector.