Bulgarian Dairy Producers Face Challenges from Cheaper EU Milk Imports
The Bulgarian dairy sector is experiencing significant challenges as cheaper milk imports from other European Union countries are impacting local prices, according to a report by the Bulgarian National Radio. Vladislav Mihaylov from the Association of Dairy Producers has expressed support for the government's intention to revise the Regulation on Dairy Products, emphasizing the need for comprehensive reform through strategic discussions involving all sector participants.
Mihaylov highlighted that while there is no shortage of raw milk in Bulgaria, the distribution of profits is skewed, with most financial gains concentrated at the retail stage. Since the onset of the COVID-19 pandemic, local producers have been struggling to maintain profitability amidst falling prices. In February, Bulgarian milk was priced between 50 to 54 euro cents per liter but has since dropped to as low as 41 cents per liter due to the influx of cheaper imported milk priced at around 30 to 32 cents per liter.
Despite the competitive pressure, Mihaylov warns against rejecting lower-priced imports, as this could reduce the competitiveness of local processors, leading to an increased presence of foreign dairy products in Bulgarian supermarkets. He noted that imported milk often enters Bulgaria at 32 cents per liter, whereas it is exported from Romania at even lower prices of 25 to 27 cents per liter.
The challenges are compounded by structural issues within Bulgarian agriculture. More than 70% of livestock farms in Bulgaria are small family-run operations with limited capacity and outdated technology. In contrast, many European competitors operate large-scale farms with advanced systems. This disparity in scale and efficiency poses a significant obstacle to the competitiveness of Bulgarian dairy production.
Mihaylov advocates for the creation of incentives that encourage processors to purchase more Bulgarian raw milk and motivate retailers to feature more locally produced dairy products. Such measures, he argues, would strengthen domestic production and create fairer market conditions.
