The increase in fuel and fertiliser prices is placing Bulgarian agriculture under serious pressure, with industry representatives warning of a risk of widespread bankruptcies. Against this backdrop, low purchase prices are further worsening the situation and raising questions about the profitability of production.
Agricultural producer Stanimir Stanchev said:
“Rising costs and low purchase prices are making more and more farmers question whether the numbers add up.”
According to him, the increase in expenses is significant and affects all major cost components.
“There has been more than a 30% increase in fuel prices. For us, however, the largest share – around 30% of costs – comes from fertilisers, which have risen by about 37%. Plant protection products have also increased by between 5 and 7%.”
Stanchev stressed that despite rising costs, the prices of agricultural produce remain almost unchanged.
He added:
“Our produce is sold at market prices, where the increase is negligible.”
According to him, the sector is going through one of its most severe crises in decades.
Stanchev added:
“After four consecutive difficult years, Bulgarian agriculture has not faced such a challenge for at least 40 years.”
Farmers are expecting support from the state in the form of specific measures. Despite the difficulties, producers are attempting to cope by optimising costs.
Stanchev emphasised:
“We are cutting costs, optimising processes and labour, but this cannot go on indefinitely. There are costs that do not depend on us.”
According to him, there is already a real risk that some smaller producers may go bankrupt.
“We have been talking about the risk of bankruptcies since last year. Many colleagues are hoping for better times, but the pressure in the sector is enormous.”
Nevertheless, farmers remain moderately optimistic.
“There is a saying in agriculture – the good farming year is the next one. We hope it will be the same this time,” Stanchev concluded.
According to him, if the trend continues, the pressure on producers will sooner or later be reflected in final prices for consumers.
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