Bulgarian poultry production does not meet demand - GAIN

Bulgaria is a net importer of chicken meat
calendar icon 24 July 2024
clock icon 2 minute read

Bulgaria has a well-established and efficient poultry industry which claims to be competitive with the industries in the other EU member states, especially those dominating EU poultry supply such as Poland and Hungary. However, domestic supply is not sufficient to meet demand and Bulgaria is a net importer of chicken meat, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report

Trade sources report that potentially larger expansion and faster progress of the local industry is hampered by lower purchasing power of local consumers and very price competitive EU imports. Industry sources believe that more competitive EU imports are reportedly caused by higher subsidies provided in major EU exporters. Imported chicken meat is usually sold through the food service channels or for further processing while local products are sold mainly through retail channels.

Local poultry meat producers target export markets to diversify their risk and increase sales. Exports are often seen as a more profitable source of revenue due to better pricing balancing for less profitable local sales. Exports of higher quality and value-added product - for example specialty poultry cuts and/or higher value processed poultry products, or products suitable for the needs of the hotel industry/fast food restaurants - are the most frequently used patterns for increasing export sales and revenue. Some processing companies have established cross border trade with Romania and Greece to import chicken meat in bulk, add value by taking advantage of more affordable local labor costs, and export back a processed product serving certain market niches.

Imports are dominated by broiler meat, both in volume and in value. For example, in 2023 imports of broiler meat represented 95% of total poultry meat imports in volume and 91% in value. Conversely, most of export revenues (in value) come from duck products, although volumes are much smaller than for broiler meat. In 2023, duck exports in volume were about 40% of total poultry exports but accounted for 71% of export revenue.

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