The Commission for the Protection of Competition (CPC) has highlighted a troubling disparity in Bulgaria’s dairy sector: consumers face some of the highest prices for dairy products in the European Union, while local producers and processors struggle to survive.

On Tuesday, the CPC convened a meeting in Plovdiv with dairy producers and processors from across the country, hosted by the Agricultural University - Plovdiv. This marked the first external meeting held by the Commission as part of its in-depth sectoral analysis of the essential food market, with a specific focus on milk and dairy products.

At the briefing, the CPC shared preliminary findings from its interim report, showing serious structural problems within the sector. Chairman Rosen Karadimov emphasized that Bulgaria, historically a key milk and dairy producer in the EU, now lags dramatically behind. Production is declining, herds are shrinking, and many rural areas are experiencing depopulation, creating a “disappearing sector.”

Zhelyo Boychev, a CPC member, noted that raw cow’s milk production in Bulgaria has fallen by 25% over the past five years. Domestic output is now insufficient to meet local demand, resulting in a near 45% increase in dairy imports over the same period. The decline is also evident in livestock numbers: over five years, dairy cows dropped by 26%, sheep by 46%, and goats by 42%. In commercial farms, reductions are even more severe: 66% for cows, 65% for sheep, and 70% for goats, signaling critical unsustainability in production.

The report also points to rising costs, with milk production expenses increasing by 27%. Meanwhile, Bulgarian dairy farmers earn roughly 10% less than their EU counterparts, often selling milk at prices close to the cost of production. This leaves the sector largely unprofitable and unable to remain competitive without structural changes.

Boychev stressed that the CPC’s next challenge is to identify ways to restore competitiveness and profitability in the sector, allowing Bulgaria to reclaim its historical role as a leading producer of dairy products.