Bulgaria, Brussels – Bulgarian agriculture faces mounting pressure as falling milk prices and rising production costs threaten farmer livelihoods and sector stability
Bulgaria’s dairy industry is facing an escalating crisis as falling milk prices continue to squeeze farmers already grappling with rising production costs, according to Agriculture Minister Ivan Hristanov.
Speaking at a recent meeting of the Council of the European Union on Agriculture and Fisheries in Brussels, Hristanov highlighted a troubling trend that has persisted since early 2025 and appears to be continuing into 2026.
He noted that consumer milk prices have been steadily declining, a development that might appear beneficial to households but is having severe consequences for producers. Farmers, particularly small-scale operators and those in less favorable regions, are finding it increasingly difficult to sell their output.
According to Hristanov, in some cases buyers are refusing to purchase milk altogether, leaving producers with unsold stock and mounting losses. The situation is particularly acute in rural areas where alternative income opportunities are limited.
A major factor behind the imbalance, he explained, is the influx of cheaper raw materials from external markets. These imports, often produced at lower costs, are distorting competition and placing domestic producers at a clear disadvantage.
At the same time, the cost of production continues to rise. Farmers are facing higher electricity bills and increasing prices for animal feed, two critical components of dairy operations. This dual pressure—falling revenues and rising expenses—is creating what Hristanov described as an unsustainable economic environment.
The minister warned that without timely intervention, the sector could face long-term structural damage. Smaller farms, which lack the financial resilience of larger operations, are particularly vulnerable to closure.
To address the crisis, Hristanov urged the European Union to make full use of its available policy tools. Among the options he suggested was the activation of emergency reserves designed to stabilize agricultural markets during periods of volatility.
He also pointed to the possibility of a temporary voluntary reduction in milk production. Such a measure, he argued, could help rebalance supply and demand, thereby easing downward pressure on prices.
Beyond immediate interventions, the minister stressed the importance of maintaining a strong and independent Common Agricultural Policy. He argued that reducing its budget would undermine efforts to ensure food security across the bloc.
Hristanov emphasized that farmers require predictability to plan their operations effectively. This includes stable direct payments, targeted support measures, and investment programs that can help modernize agricultural practices.
He also raised the issue of disparities between EU member states, arguing that Bulgarian farmers should not receive less financial support than their counterparts elsewhere in Europe for performing equivalent work.
Another concern highlighted during the meeting was the cumulative impact of trade agreements. Hristanov warned that when such agreements are negotiated in isolation, their combined effects can place disproportionate pressure on vulnerable sectors like dairy.
He called for a more comprehensive assessment of trade policies, taking into account their broader implications for domestic industries. In addition, he stressed the need for stricter enforcement of border controls to ensure that imported goods meet EU safety and quality standards.
“The safety and quality of products entering the European market must not be compromised,” he said, underlining the importance of maintaining consumer trust while protecting local producers.
The challenges outlined by Hristanov extend beyond the dairy sector. In the field of fisheries and aquaculture, Bulgaria is facing a similarly difficult situation, particularly in the Black Sea region.
The minister noted that the country’s fishing fleet is largely outdated, making it difficult for operators to compete and comply with modern environmental and efficiency standards. At the same time, fishermen are being encouraged to transition to more sustainable and energy-efficient practices.
Such a transformation, however, requires significant financial investment. Hristanov argued that without increased funding at the EU level, these goals will remain out of reach for many operators.
He also highlighted the need to accelerate the disbursement of financial support. Administrative delays, he said, often prevent timely assistance from reaching those who need it most, further exacerbating the sector’s challenges.
Small-scale fishermen are particularly at risk. Without simplified access to financing and reduced bureaucratic hurdles, many could be forced out of the industry altogether.
The broader implications of these challenges are significant. Agriculture and fisheries play a crucial role in Bulgaria’s economy, supporting rural communities and contributing to national food security.
If current trends continue, experts warn that the country could see a decline in domestic production capacity, increasing reliance on imports and exposing consumers to external market fluctuations.
Hristanov’s remarks reflect growing concern among EU member states about the resilience of their agricultural sectors in the face of global market pressures and rising costs.
As discussions continue within the European Union, the focus is likely to remain on balancing market stability with long-term sustainability. For Bulgaria’s farmers, however, the need for action is immediate.
Without decisive measures, the combination of falling prices and rising costs could push many out of business, reshaping the country’s agricultural landscape for years to come.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members