保加利亚促进17+1模式下农业合作

Agriculture in Bulgaria: state, key areas and main development directions, agricultural trade

Agriculture
occupies a specific place in the socio-economic life of Bulgaria. The
availability of fertile soils and very good climatic and geographical
conditions, including for the development of organic farming, traditions
in the production of cereals, vegetables, fruits and animal breeding
are major factors for its development.

The
gross value added (GVA) of the agricultural sector in 2020 amounts to
USD 2 359 million and showed an increase of 4.4% compared to the
previous year. It accounts for 3.9% of total GVA in the Bulgarian
economy. The sector provides employment to about 7% of the country's
population.

Gross
agricultural output in 2020 amounts to USD 4 518.6 million. The main
areas with the most significant contribution to its formation are the
production of cereals (with a share of 32.6%), the production of
oilseeds (with a share of 20.5%), the production of fruits and
vegetables (with a share of 11%), milk production (with a share of
8.1%), poultry farming (with a share of 6.4%).

An
important place in the structure of agricultural production is occupied
by grain production and the production of oilseeds. These productions
have stable development and growth, fully satisfy the needs of the
country and occupy a significant part of exports.

Animal
breeding and fruit and vegetable production, which have been hardest
hit by the changes in the transition to a market economy, showed an
upward development over the past few years. There is a tendency to
increase the production potential in fruit growing and vegetable
production.

Bulgaria's
agriculture guarantees to a high extent the food security of our
country. Domestic consumption of most of the main agricultural products
is satisfied mainly by local production – about and over 90% of products
such as bread, eggs, lamb and dairy products, about 60-80% of beef and
basic vegetables and fruits.

Bulgaria
is a traditional producer of essential oil crops. It is one of the main
producers of rose oil in the world, with an annual production of about 3
000 metric tons in recent years (while world consumption is estimated
at 5 to 7 thousand metric tons per year). Almost all the rose oil
produced is sold on foreign markets – mainly to EU countries, the Far
East and the Arab countries. In the last few years, our country has
established itself as a world leader in the production of lavender oil.
About 80-85% of the lavender oil produced is well received
internationally in both EU and third countries.

As
a result of the implemented policy, there is a significant progress in
organic farming. In 2019, the areas on which the methods of organic
production are applied (areas in transition and organic areas) increased
by 65.4% compared to 2017. The share of areas with organic production
in the total usable agricultural area of our country increased from 2.7%
in 2017 to 4.5% in 2019.

Agriculture
and the food processing sector have a significant potential for the
production of quality products with high added value to meet the diverse
and growing demands of European and global markets.

In
recent years, agricultural trade forms about 13 – 14% of the total
trade of Bulgaria, about 16 – 17% of total exports and about 10 – 11% of
total imports. The leading trading partners are the countries of the
European Union.

Our
country is one of the main EU exporters of a number of agricultural
products – sunflower, lavender oil, sunflower oil, honey, wheat, maize,
and for some products it holds a leading position as an exporter
worldwide – canned cherries, lavender oil, sunflower and sunflower oil,
etc.

Investments

For
the last few years, funds in the amount of about USD 0.8 – 1 billion
have been invested in the Bulgarian agriculture sector annually, which
represents about 8% of the investments in our country's economy.
Investments are mainly aimed at modernizing farms and achieving food and
feed safety standards; environmental protection; animal welfare;
equipment renovation and introduction of new technologies; modernization
in the processing industry, etc.

Taxation
is one of the advantages that Bulgaria offers as a place for foreign
investment. Our country has the lowest taxes in the EU – 10% corporate
and income tax. As a member of the European Union, Bulgaria provides
unhindered and duty-free access to the EU market.

Among
the opportunities for national support in agriculture provided by
European competition rules is the granting of tax preferences related to
investments in the agricultural sector.

In
Bulgaria, a remission of up to 60% of the corporate tax for registered
agricultural producers is applied for the tax profit from the activity
of production of unprocessed plant and animal products when reinvested
in fixed assets – new buildings and new agricultural equipment – in the
amount of up to EUR 500 000.

Farmers
can receive support for the implementation of investment projects under
state aid schemes and measures financed by EU agricultural funds.

Foreign
investors and companies which are registered as agricultural producers
in Bulgaria in accordance with national legislation can also benefit
from the applied forms of support in the field of agriculture.

Priorities and Development Plans

After
the changes that took place in the 1990s, Bulgarian agriculture has
passed through tough times. It faced many challenges – the
transformation of the transition period, the global financial and
economic crisis, the accession and adaptation to the Common European
Market and many others. The COVID-19 pandemic put agricultural sector to
new tests.

The
efforts of the Bulgarian government and in particular the team of the
Ministry of Agriculture, Food and Forestry currently and in the coming
years will be focused on the development and strengthening of the
agricultural sector as competitive and market-oriented.

As
an EU member state, Bulgaria is entering the new European programming
cycle – the 2021-2027 period and aims to ensure continuity and
consistency in the applied policies for the Agriculture sector. The
preparation of the National Strategic Plan for Agriculture and Rural
Development for the period 2021 – 2027 is underway, through which there
will be implemented the instruments financed by European agricultural
funds and some will be co-financed by the national budget, for the
purpose of supporting the implementation of those policies.

Among
the main priorities are the structural and product balancing of the
agricultural sector, improving the condition of land relations and
hydro-amelioration, effective risk management in plant growing and
animal breeding, strengthening the market position of farmers and
processors in the food supply chain, a high level of protection of human
health and consumer interests in relation to food. Emphasis is placed
on investments for the introduction of innovative products and digital
technologies in farms. The application in agricultural production of
environmentally friendly practices, contributing to the protection of
water, soil, air and biodiversity, will be encouraged. Solutions will be
sought to address the challenges of climate change. The focus will be
put on key issues such as achieving sustainability of small and
medium-sized farms and vulnerable but traditional and promising sectors –
animal breeding, fruit and vegetable production, organic farming.

Promote agricultural cooperation under the 17+1 model

Trade
relations between Bulgaria and China are developing positively. In 2019
and 2020, trade with China accounts for a little over 1% of the total
agricultural trade of Bulgaria with all countries and about 4% – 5% of
that with non-EU countries. In 2020, the exchange of agricultural goods
between Bulgaria and China amounted to USD 150 million, by 46.2% above
the level of the previous year. The value of Bulgarian agricultural
exports to the Chinese market reached USD 75.8 million and the import of
agricultural products from China amounted to USD 74.1 million. 

The
agricultural trade between our two countries includes mainly cereals
(respectively 35% of total exports from Bulgaria and 22% of total
exports from China), oilseeds, residues from the food industry and
prepared animal feeds, fats and oils of vegetable or animal origin, etc.

Bulgaria
is interested not only in the development of bilateral trade relations,
but also in attracting more significant Chinese investments in
Bulgarian agriculture and food industry. The Ministry of Agriculture,
Food and Forestry (MAFF) provides and will continue to provide
assistance and promote all initiatives, joint projects and practical
business cooperation between Bulgarian and Chinese companies that are in
the interest of developing mutually beneficial bilateral cooperation in
the field of agriculture and food.

A
good example of practical cooperation in the field of agriculture and
food are the successful investments and active operation in Bulgarian
agriculture since 2011 of the Chinese state-owned company Tianjin State
Farms Agribusiness Group (currently Tianjin Food Group Co., Ltd.)
through its companies established in Bulgaria. In 2016 the Chinese
company China Tianjin Tianshinong Farming Technology Co., Ltd.) started
the construction of a new plant for the production of feed in Bulgaria.
The plant has already been opened and operates successfully.

Bulgaria
successfully cooperates with China within the Initiative for
Cooperation between China and CEE Countries (the 17+1 Initiative). Since
2015, the Association for the Promotion of Agricultural Cooperation
between China and CEE Countries, established and functioning at the
MAFF, successfully operates and has proved to be an important tool for
promoting bilateral and multilateral cooperation in agriculture and food
between China and CEE Countries and for promoting trade in agricultural
and food products within the 17+1 format. The two successfully
implemented strategic projects of the Association for the Promotion of
Agricultural Cooperation between China and CEE Countries, approved by
the Council of Ministers of the Republic of Bulgaria, are:

1. For the establishment and development of 17+1 Agricultural Cooperation Demonstration Zones in the CEE countries and in China.

2.
For the establishment and development 17+1 e-Commerce Logistics Hubs
and Pavilions for Agricultural and Other Products in the CEE countries
and in China. 

Editor | Zhang Mei

Design | Demi