Bulgarian Dairy Industry Shows Resilience and Growth, Indicates USDA FAS Report
Source: The DairyNews
In a recent report by the US Department of Agriculture’s Foreign Agricultural Service (FAS), the Bulgarian dairy sector is depicted as on a path of progress.
Despite challenges such as a decline in the dairy cow herd, the industry saw stabilisation and growth in 2023, primarily fueled by increased milk yields and record-high fluid milk imports. The report underscores ongoing consolidation and restructuring within the dairy sector, with larger, more efficient operations taking a dominant role.
Key findings reveal a notable 4.2% increase in total milk deliveries in 2023 compared to the previous year, marking the highest delivery levels since 2020, as reported by Eurostat. With 240 dairy processors in the country, including 10 major companies, the landscape is witnessing significant shifts. The merger of United Milk Company and Tirbul, two major players, is expected to finalize by July 2024, collectively commanding a quarter of the market share.
Amidst a backdrop of softening food inflation and improving consumer incomes, the demand for dairy products has found support. Projections from FAS/Sofia suggest a strengthening dairy industry in 2024, driven by continued investments in farm efficiency, enhanced feed availability, reduced inflation, and a more dynamic demand from the retail and hospitality sectors, as highlighted by Mila Boshakova-Petrova of USDA FAS.
The report also indicates noteworthy trends in Bulgaria's dairy trade, with Hungary, Romania, and Poland emerging as primary milk suppliers. Additionally, there has been modest growth in dairy product production, with yogurts showing a 6% increase and cheese a 2% uptick in 2023. While fluid milk consumption per capita slightly declined from 12.1 kg in 2022 to 11.7 kg in 2023, white cheese sales saw a 17% surge in value despite a 7% dip in volume.
Key findings reveal a notable 4.2% increase in total milk deliveries in 2023 compared to the previous year, marking the highest delivery levels since 2020, as reported by Eurostat. With 240 dairy processors in the country, including 10 major companies, the landscape is witnessing significant shifts. The merger of United Milk Company and Tirbul, two major players, is expected to finalize by July 2024, collectively commanding a quarter of the market share.
Amidst a backdrop of softening food inflation and improving consumer incomes, the demand for dairy products has found support. Projections from FAS/Sofia suggest a strengthening dairy industry in 2024, driven by continued investments in farm efficiency, enhanced feed availability, reduced inflation, and a more dynamic demand from the retail and hospitality sectors, as highlighted by Mila Boshakova-Petrova of USDA FAS.
The report also indicates noteworthy trends in Bulgaria's dairy trade, with Hungary, Romania, and Poland emerging as primary milk suppliers. Additionally, there has been modest growth in dairy product production, with yogurts showing a 6% increase and cheese a 2% uptick in 2023. While fluid milk consumption per capita slightly declined from 12.1 kg in 2022 to 11.7 kg in 2023, white cheese sales saw a 17% surge in value despite a 7% dip in volume.
