Bulgaria: Grain and Feed Market Update

In marketing year (MY) 2022/23, Bulgaria expects to harvest a corn crop of 2.8 million metric tons (MMT), 18 percent lower than in MY 2021/22. The decrease can be attributed to nine percent decline in area planted, yields severely impacted by the summer drought and heat, and higher pest infestation. Winter grains had better results due to more favorable weather and are estimated at 6.3 MMT of wheat and 640,000 MT of barley, however, the crops are 13 and 10 percent lower than in MY 2021/22, respectively. Increasing production costs, inflation and softening prices in the Black Sea region, are the main concerns for the farmers. Although Bulgaria imported small quantities of Ukrainian wheat and corn, producers are upset about the pressure on market prices. Currently, exports are stalled as farmers are holding grain stocks due to declining prices, leading to significant logistical/storage challenges. Due to increased production costs, producers may reduce input use in MY 2023/24, putting future yields in question