August 8, 2012

After extensive drought and winter frosts lowered yields, Bulgaria harvested 4.1 million tonnes of wheat from 99% of the sown area, about 8% less than a year ago.

Despite the weaker crop, the Black Sea country will still be able to meet its domestic demand for wheat and export about 1.5-2.0 million tonnes, officials say.

Bulgarian farmers have already exported 524,000 tonnes of wheat from the new crop, the ministry said in a statement. Bulgaria usually ships its grain output to Spain, Italy and Portugal.

Agriculture Minister Miroslav Naidenov said the government was launching massive checks in grain trade to make sure exporters, shippers and farmers declare in full their deals and pay all necessary taxes.

Rising global grain prices because of the weaker crops in Russia and the worsened crop outlook in the US has raised concerns in Bulgaria the EU's poorest member state, where prices of key foods started to spike.

The farm ministry arranged with two major food store chains to freeze prices of 10 staple foods for three months in the hope that by then prices would stabilise.