Bulgaria’s Dairy Sector in Crisis: Rising Prices, Declining Production Raise Concerns

Bulgaria’s dairy industry is facing a deepening crisis characterized by plummeting production and soaring consumer prices, prompting intervention from the Commission for the Protection of Competition (CPC). Preliminary data indicates a significant disconnect between the prices paid to producers and those charged to consumers, leading to calls for state intervention and a fairer distribution of European funds.

Production Decline and Import Surge

Over the past five years, raw cow’s milk production in Bulgaria has decreased by approximately 25%, while dairy imports have surged by nearly 45% [CPC Report]. This decline is mirrored in livestock numbers, with dairy cow populations falling by 26%, sheep by 46%, and goats by 42% during the same period [CPC Report]. The number of livestock farms has also drastically reduced, with cow and sheep holdings down 66% and goat holdings down 70% [CPC Report].

Price Discrepancy and Consumer Impact

Despite the decline in domestic production, Bulgarian consumers are paying some of the highest prices for dairy products in the European Union [Fakti.bg Report]. The CPC is launching a detailed inspection of retail chains to investigate markup and discount practices [Fakti.bg Report]. Consumers have expressed concerns about the high cost of dairy staples like cheese and yogurt [Fakti.bg Report].

Producers Struggle with Low Milk Prices

Dairy farmers are facing significant financial challenges, receiving approximately 10% less for their milk compared to their counterparts in other EU countries [Fakti.bg Report]. Many producers are operating at a loss, with some receiving less than one euro per liter of milk [Fakti.bg Report]. This economic pressure is forcing farmers to abandon milk production and seek alternative livelihoods [Fakti.bg Report].

Calls for State Support and Fairer Funding

Industry organizations are urging the government to intervene and implement measures to support the dairy sector. These include advocating for a more equitable distribution of European funds to ensure the sustainability of the industry and affordable prices for consumers [Plevna Patriot Report]. The CPC has stated it will use its full powers to address any distortions in the competitive environment [CPC Report].

Looking Ahead

The future of Bulgaria’s dairy sector remains uncertain. Addressing the declining production, price discrepancies, and financial hardships faced by producers will require concerted efforts from the government, industry stakeholders, and the CPC to ensure a sustainable and competitive dairy industry for the benefit of both producers and consumers.