Bulgaria’s dairy industry is facing a deepening crisis as production declines sharply while consumers continue to pay some of the highest prices for dairy products in the European Union.
The warning came from the Commission for the Protection of Competition (CPC), which revealed alarming trends during a meeting with dairy producers and processors in the city of Plovdiv on Tuesday.
The gathering, hosted by the Agricultural University in Plovdiv, marked the first time the CPC has held an external meeting as part of its ongoing sectoral analysis of the essential food market. The current study is focusing specifically on the milk and dairy sector.
During the briefing, officials presented preliminary findings from an interim report that points to serious structural weaknesses affecting the industry.
CPC Chairman Rosen Karadimov said Bulgaria, once known as a significant milk and dairy producer within the European Union, is now experiencing a dramatic decline in production capacity.
According to Karadimov, shrinking livestock numbers, falling milk output, and ongoing depopulation in rural areas are accelerating the sector’s deterioration.
He described the current trend as the gradual disappearance of a historically important agricultural sector. One of the most concerning developments is the steep drop in raw cow’s milk production over recent years.
CPC member Zhelyo Boychev told participants that production of raw cow’s milk in Bulgaria has declined by approximately 25 percent over the past five years. This sharp fall in output has created a significant supply gap in the domestic market, forcing retailers and processors to rely more heavily on imported dairy products.
As a result, dairy imports into Bulgaria have surged by nearly 45 percent during the same period. The decline in production is closely linked to the shrinking number of livestock across the country.
Data presented by the CPC shows that the number of dairy cows has dropped by 26 percent over the past five years. The reduction is even more dramatic among other dairy animals. Sheep numbers have fallen by 46 percent, while goat populations have declined by 42 percent.
The situation is particularly severe in commercial farms, where livestock reductions are significantly higher. Within professional farming operations, the number of dairy cows has fallen by 66 percent, sheep by 65 percent, and goats by 70 percent.
Industry representatives attending the meeting warned that such dramatic declines indicate serious sustainability problems within the sector. Many farmers say they are struggling to maintain operations due to rising costs and shrinking profit margins.
Production costs for milk have increased significantly in recent years, placing additional pressure on already vulnerable dairy farms. According to CPC data, the cost of producing milk in Bulgaria has risen by approximately 27 percent.
Despite these rising expenses, dairy farmers in Bulgaria earn roughly 10 percent less for their milk than farmers in other European Union countries. In many cases, producers are forced to sell milk at prices close to their production costs, leaving little or no room for profit.
This financial strain has led many farmers to reduce herd sizes or leave the sector entirely. Experts warn that if the current trend continues, Bulgaria could become increasingly dependent on imported dairy products.
This dependence could further weaken domestic production and undermine the country’s long-standing dairy traditions. The CPC’s sectoral review aims to identify the underlying causes of the crisis and explore potential solutions that could restore stability to the industry.
Boychev said the Commission’s next task will be to determine how competitiveness and profitability can be rebuilt within the dairy sector. He stressed that meaningful structural changes may be required to revive domestic production and support struggling farmers.
Stakeholders from across the dairy supply chain are expected to contribute to the next stage of the analysis as the CPC continues consultations with producers, processors, and industry experts.
Officials hope that the findings will eventually lead to policy recommendations aimed at strengthening the sector and ensuring long-term sustainability.
For now, however, the data presented in Plovdiv highlights a troubling contradiction: while Bulgarian consumers pay among the highest dairy prices in the EU, the country’s own dairy producers are fighting to survive.