Sofia, March 10, 2026 — Bulgaria’s competition regulator will propose concrete policy measures to the government aimed at stabilizing and developing the country’s dairy sector, following alarming findings from a market study showing declining production and structural distortions across the industry.
The announcement was made by Rosen Karadimov, chairman of the Commission for Protection of Competition, ahead of a special off-site meeting held at Agricultural University of Plovdiv. The meeting forms part of the commission’s in-depth sectoral analysis of the milk and dairy products market.
According to Karadimov, one of the regulator’s key functions is to analyze markets and propose policy measures that help ensure effective competition. Through sectoral studies, the commission can identify market distortions, recommend remedies and suggest regulatory changes to improve the competitive environment in specific industries.
“The goal of today’s off-site session, which we are organizing for the first time, is to engage in dialogue with the entire dairy industry and formulate concrete measures for the executive branch to support the sector,” Karadimov said.
The meeting gathered leading industry representatives, including Dimitar Zorov, chairman of the Association of Dairy Processors in Bulgaria; Vladislav Mihaylov, head of the National Association of Dairy Processors; and Simeon Karakolev, co-chair of the National Sheep and Goat Breeding Association, along with a wide range of sector stakeholders.
Preliminary findings from the food market analysis have already revealed significant structural problems in the dairy industry. As a result, the competition authority launched a deeper investigation covering the entire supply chain—from raw milk production to final dairy products.
Early results from the expanded study point to severe negative trends. Over the past five years, Bulgaria’s production of raw fresh milk has fallen by around 25%. At the same time, imports of dairy products have increased by up to 43%, indicating that domestic production is no longer sufficient to meet consumer demand.
“Bulgarian consumers are paying some of the highest prices for dairy products in Europe while producers are struggling and the sector faces the risk of collapse,” said Zhelyo Boychev, a member of the competition commission. He also pointed to what he described as an “extremely unfair distribution of added value” across the supply chain.
The in-depth research also shows a sharp decline in dairy livestock numbers over the past five years. The population of dairy cows has dropped by 26%, sheep by 46%, and goats by 42%.
At the same time, production costs have risen significantly—by about 27% for cow’s milk and 46% for sheep’s milk. The number of farms has also fallen dramatically, declining by 70% for goat farms, 66% for cattle farms, and 65% for sheep farms.
Despite rising production costs, purchase prices for raw milk remain around 10% below the average levels in the European Union, while retail prices for locally produced dairy products remain relatively high.
“The production cost of raw milk in the country is approaching its purchase price, which raises questions not only about the level of competition in the dairy sector but about its very survival,” Karadimov said, warning of potential demographic, economic, social and regional consequences if the trend continues.
The commission said the final outcome of its sector inquiry will include recommendations to policymakers aimed at restoring fair competition and ensuring the long-term sustainability of Bulgaria’s dairy industry.
Source: https://www.cpc.bg/news-484
