Dairy Producers in Bulgaria Predict Wave of Bankruptcies

Business | March 30, 2015, Monday // 12:04
Bulgaria: Dairy Producers in Bulgaria Predict Wave of Bankruptcies Photo by BGNES

Dairy producers in Bulgaria have warned about a wave of bankruptcies in the sector.

Sales of cheese, yellow cheese, butter, and other dairy products have slumped by 30%, with Bulgarian products languishing in storage facilities, according to reports of private TV station Nova TV.

The Russian embargo on Western food imports has resulted in shops in Bulgaria being inundated with European goods at dumping prices.

At the same time, a kilogram of quality Bulgarian yellow cheese cannot sell for less than BGN 10.

However, retailers sell these products cheaper.

Industry representatives insist that the purchasing price of milk has dropped to an inadmissible rate of BGN 0.50 per liter.

The price of raw milk has dropped by 35% since November, while price tags of dairy products in shops have remained unchanged, according to Tancho Kolev, Chairman of the National Association of Meat and Dairy Producers.

Simeon Prisadashki, Deputy Chairman of the Bulgarian Association of Dairy Processors draws attention to the fact that dairy processing companies in Bulgaria import cheap raw material.

He notes that Bulgaria imports fresh raw milk mostly from Poland, Hungary, Germany, and Romania.

According to statistics of chains of stores, however, nearly 75% of their turnover is generated by Bulgarian goods.

Retailers claim that imports of dairy products and eggs have dropped by 10% from the levels in 2013.

Industry representatives, as cited by money.bg, hope for a reduction in the VAT rate from 20% to 10%.

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Tags: dairy industry, dairy farm, milk prices, Russian embargo

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