Agriculture in Bulgaria

1
Agriculture in Bulgaria

• Atanas Kiskinov
• National Dairy Board of Bulgaria
• Co-financed by the European Union within the
  programme "Europe for Citizens" 2007 2013

2
Macroeconomic indicators
3
Gross value-added in agriculture EU
4
Gross value-added in agriculture Bulgaria
5
Dynamics in Gross Value-added
6
Agriculture in Bulgaria after 1990

• Fundamental reform in agriculture
• Privatization
• Destruction of old production structures
• State withdrawal from agriculture
• Lack of sufficient governmental assistance during
  the period of reforms
• Lack of sufficient financial assistance for
  farmers.

7
Results Agriculture is no longer an engine of
national economy

• Gross value-added in Agriculture stays constant
  or decreasing whereas gross value-added in
  industry is increasing.
• Agriculture plays as burden in economy.
• Labour force in agriculture is going down.
• Managerial capacity in agriculture is extremely
  poor.
• Low effectiveness and efficiency in agriculture.
• Low interest in investments in agriculture.

8
Results Extensive and dependable production

• Serious unsolved structural problems
• External competition puts the sector under
  pressure.
• Low competitiveness leads to extensive but
  expensive (not enough technologies) production.
• Strong dependency on environmental and climate
  change.
• State efforts oriented mainly to formal reforms
  in legislation and meeting the CAP requirements.

9
Results Trend to unbalanced agricultural
structure

• 78 of arable land is covered by grain and
  oil-bearing crops. Low production and low
  employment are essential for these sectors.
• Almost dead sugar-beet sector gt high rates of
  import.
• For 2002-2006 land used for vegetables decreased
  with 14.
• Trend from export-oriented vegetable and fruit
  sector to import-oriented structure.
• Less land for vineyards and decrease in wine
  production.
• Unbalanced agricultural structure is typical for
  developing countries or for countries with
  unfriendly environmental conditions. Both are not
  supposed to apply to Bulgaria.

10
Results Stock-breeding

• Decrease in number of animals (May 2007 May
  2008
• cows 2.8 down
• sheep 6.2 down
• goats 7.8 down.
• Low productiveness.
• Small-sized farms.
• Insufficient row production for the processing
  industry.
• Monopoles established in some sectors (pigs and
  fowls).

11
How this situation could be improved?

• Bigger farms, higher technologies, increasing
  investments
• Improvement of quality and strong marketing on
  the Internal market
• Funds form Rural Development Programme
• Organic farming development
• Improvement of managerial knowledge and
  experience in farming
• Establishing and development of strong farmers
  organizations, to whom government should delegate
  responsibilities and real authority
• Higher state and NGO assistance considering
  legislation, financial aid, advisory service.