Analysis of the Situation in the Dairy Sector in Bulgaria
2009
Ivanov, B. (Institute of Agricultural Economics, Sofia (Bulgaria))
The production stage is strongly fragmented, small size predominated and self-subsistent oriented thus it does not dispose with economic to scale advantages and significant possibilities for adoption of expensive technologies. The comparatively low level of the milk yield substantially affects the competitiveness of national dairy sector thence the productivity is insufficient and subdues the overall competitiveness. Some percent of dairy farms operating mainly in plain region do not have competitive advantages with other production types, as subsidies allocated by single payment per area turn out to be not successful mode for them, while adding the widespread scheme for distribution of the top-up payments in the sector proves that a lot of households may not sense succinctly the effect from the accession of the country in EU. Besides, it is come out that in Bulgaria 30% of the dairy livestock are reared in the farms meeting the EU standards, while predominant faction of the milk is delivered from the households far from these requirements. The hygiene problems concerning the households out of the III category persist and it is supposed that the problems might not be overcome without significant contribution by the European Fund for Agricultural and Rural Development. About 14% of total production of milk is derived from sheep and goat, as especially the conditions in Bulgaria are very propitious for their breeding, while these sub-sectors are not obliged with severe quality criteria and standards, which leads to more various market supply, standing for the one of the great chances for the sector to succeed with different, unique and preferred by the consumers production.
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