Domestic Milk Production Down by 25%, While Imports of Milk and Dairy Products Rise by 43%

The production of raw cow’s milk has fallen by 25% over the period 2020–2024, while imports of milk and dairy products have increased by 43%. This is shown by an in-depth study of the milk and dairy products market launched by the Commission for Protection of Competition (CPC) as part of its sectoral analysis of the market for essential food goods.

“This puts the sustainability of the sector at risk and creates dependence on external markets,” the CPC noted.

Working meetings have been held between representatives of the CPC, the National Association of Milk Processors, and the Association of Milk Processors in Bulgaria to discuss the problems in the sector. The analysis points to serious distortions along the supply chain for milk and dairy products.

The data also show that the sector is highly concentrated.

“On the basis of these findings, the national competition authority has, for the first time, launched a review of a market concentration in the dairy products sector that was approved in 2023 between Tirbul EAD and United Milk Company EAD. The CPC has opened proceedings to establish whether the concentration was carried out under the conditions and in the manner in which it was authorised, including the investment intentions, producer support programmes and other commitments declared by the company, which were a key reason for approving the concentration. In the event that these conditions are not fulfilled, the Commission may exercise its statutory powers by imposing behavioural and/or structural measures, as well as a financial penalty of up to 10% of turnover,” the CPC said.

At the meetings, representatives of the sector also raised other issues, such as the lack of national quality standards, insufficient institutional control, high production costs and a shortage of labour, which further exacerbate the problems in production and processing.