Bulgaria: Dairy and Products Annual
The Bulgarian dairy industry has experienced a challenging year. Besides lower milk prices, higher milk supply in the EU, stagnant local purchases and limited export opportunities, the industry had to struggle with continued efforts for improvement of milk hygiene and quality and with the first ever outbreak of Lumpy Skin Disease (LSD) in April 2016. Dairy inventory has continued to shrink at smaller farms while larger farms grew and have invested in productivity, technology, genetics and management improvements. In 2015 milk collection and processing increased after years of decline. The prospects for 2016 are for a modest decline in dairy inventory and milk supply due to the epizootic situation. However, milk collection is expected to grow. Concentration and commercialization may lead to a further decline in subsistence farms. Changes in domestic support programs introduced in July 2016 for 2017-2020 are likely to have a very positive effect on the competitiveness of the local industry.
