Bulgaria: Dairy and Products Annual

The Bulgarian dairy industry faced significant challenges in Marketing Year (MY) 2021 with the national dairy herd, cow milk production and collection, as well as processing contracting. A dry and hot summer, combined with increasing feed grain prices, inflation pressure (especially of energy supply), and a labor deficit led to a decline in the number of dairy farms and stocks. Consolidation and restructuring of the industry continued through the dominating role of larger, more efficient dairy operations. The process was further accelerated in MY 2022 due to another hot and dry summer season, skyrocketing feed prices, inflation reaching almost 20 percent, and deteriorating consumer demand due to higher prices of dairy products. Industry development was also impacted by repercussions of the war in Ukraine. FAS/Sofia (Post) expects that with recently increased prices for fresh milk, better controlled inflation and softening feed grain prices, the dairy industry should stabilize and start recovering in MY 2023.