August 6, 2024

Bulgarian dairy industry faces mixed trends in first half of 2024

In the first half of 2024, Bulgaria processed 500,000 tonnes of milk, showcasing various trends across different dairy products, Sofia News Agency reported.

Cow's cheese production showed the most significant growth, increasing by 10% compared to the previous year. On the other hand, goat cheese production fell by 15%, reflecting a reduction in goat milk production. Butter production decreased by 27%, while white brine cheese saw a 5% increase. Yogurt production remained stable, with a slight rise of 2%.

The purchase price of cow's milk in Bulgaria has reached 0.91 leva per litre, reflecting a 3.4% increase on an annual basis. Wholesale fresh milk in a tetrapack is sold for 2.80 leva per litre, up 1.1% compared to the same period last year. Cow's cheese is priced at 14.20 leva per kilogram wholesale, marking a 2.3% annual increase.

Cow's milk production in Bulgaria during the first half of 2024 declined by 2.7% from the same period last year, totalling 479 million litres. In 2022, goat milk production was 25,000 litres, but it dropped to 19,000 litres in 2023, representing a significant decline. Sheep's milk production remained stable, while buffalo milk production also fell due to higher costs and the impact of climate change.

Bulgarian dairy product exports grew by 5% from January to June 2024, reaching 45,000 tons. The main markets for these exports are EU countries, with a 4% increase, and third countries, which saw a substantial 12% growth. Meanwhile, imports of dairy products into Bulgaria also rose, though at a more moderate rate of 2% during the same period. Key suppliers include neighbouring Greece and Romania, as well as other EU countries.

The average purchase price of cow's milk in the European Union is EUR 0.53 (US$0.58) per litre, indicating that Bulgarian producers receive a lower price compared to their European counterparts. This discrepancy is particularly noticeable when compared to leading producers like Germany and France, where prices are EUR 0.55 (US$0.60) per litre and EUR 0.56 (US$0.61) per litre, respectively.

Dairy prices are expected to continue rising in the second half of the year, driven by high production costs and increased demand. Despite these challenges, the sector remains stable, with Bulgarian producers seeking ways to optimise production and boost export potential.

-      Sofia News Agency