SOFIA — Bulgaria’s sunflower oil industry is grappling with a severe supply crisis as a shortage of sunflower seeds forces processing facilities to shut down, sparking concerns over imminent price hikes.
Supermarkets have been quick to clarify that they will not be responsible for rising prices, placing the blame squarely on limited supplies and trade restrictions.
According to the Association of Sunflower Oil Producers, numerous processing plants across the country have already ceased operations.
The crisis stems from the government’s decision to uphold restrictions on sunflower imports from Ukraine, a move that has significantly strained the industry’s supply chain.
This policy, combined with a poor 2024 harvest that yielded only about 1.42 million tons of sunflower seeds—far short of the 1.5 million tons required annually—has left processors struggling to meet demand.
The shortfall in domestic production was traditionally offset by imports, primarily from Ukraine. However, under pressure from Bulgarian sunflower producers, the government imposed restrictions on these imports, triggering a supply crunch that threatens the survival of many oil mills.
Industry experts warn that unless the situation is resolved swiftly, consumers can expect a repeat of the 2022 crisis when Russia’s invasion of Ukraine disrupted agricultural markets. At the time, panic buying saw sunflower oil prices skyrocket to 7-8 leva per liter.
Economic Impact and Export Challenges
Bulgaria, once a significant exporter of raw sunflower seeds, has transformed into a major player in the sunflower oil export market thanks to substantial private investments in processing facilities.
The sector now stands as a key contributor to Bulgaria’s GDP and tax revenues, producing sunflower-based products far beyond domestic consumption needs.
In 2022, the industry exported 910,000 tons of sunflower oil and 930,000 tons of sunflower meal, generating over €2.5 million in revenue.
However, the current supply constraints threaten this export-driven growth. Bulgarian producers caution that unless restrictions on Ukrainian imports are lifted, they will be forced to increase prices to remain viable.
Traditional export markets for Bulgarian sunflower oil, such as India and South Africa, could also be affected, while the supply of sunflower meal to China, Israel, and Morocco may face disruptions.
Peeled sunflower exports to the United States, Australia, New Zealand, and the United Kingdom could likewise be impacted.
Between 2022 and 2023, Bulgaria imported around 1.4 million tons of sunflower seeds, with 800,000 tons coming from Ukraine.
This steady influx enabled local processors to operate at full capacity, processing over 3 million tons of sunflower seeds.
The sudden halt to Ukrainian imports has not only disrupted operations but also exposed the vulnerabilities of Bulgaria’s reliance on foreign supplies.
Calls for Government Action
Industry leaders are urging the Bulgarian government to reconsider its stance on Ukrainian imports, arguing that the current policy risks collapsing a vital sector of the economy.
“We need immediate action to prevent further closures and layoffs,” said a spokesperson for the Association of Sunflower Oil Producers.
“If the restrictions are not lifted soon, we will see a significant increase in prices that will affect both the domestic market and our international competitiveness.”
As Bulgaria’s sunflower oil industry hangs in the balance, the government’s next move will be crucial in determining whether the sector can weather this storm or face a prolonged and damaging downturn.