BULGARIA

Executive Summary

The development of the agrarian sector in Bulgaria is determined from both agro-ecological and economical conditions. Crop production plays an important role in the agricultural sector.

The agricultural land in Bulgaria is close to half the territory of the country. In 2001 the arable land was 60.9% of the agricultural land. The industrial and oil-bearing crops occupy about 18% of this. The irrigated areas during the last several years account for 4-9% of the total irrigable agricultural land.

This report includes crops with potential for industrial use, for both food and non-food use (sunflower, maize, wheat) and for non-food use only (tobacco, cotton, flax etc.). The following groups are presented: oil-bearing crops, fibre crops, carbohydrate crops and special crops.

The main oil-bearing crops in Bulgaria are sunflower (Helianthus annuus L.) and oilseed rape (Brassica napus L.). Sunflower covers 95.05% of the area of oil crops in Bulgaria. Generally the sunflower is used in the food sector, mainly for vegetable oil. The industrial utilisation of sunflower oil is in the canning industry and for the production of mayonnaises and margarines. The quantity for another industrial aims (producing paints, varnishes, soaps etc.) is about 2 thousand tonnes per year. Another oil-bearing crop is oilseed rape. The rapeseed areas have grown due to the fact that this crop better utilises the winter and spring moisture and gives a relatively higher yield. The rapeseed oil has utilisation in the food industry and could also be utilised as a raw material for biodiesel and lubricant producing, in the near future.

In the country there are a number of factories which produce vegetable oil. In Brusarci a processing factory to SAMPO Company with a capacity of 3000 tonnes of biodiesel per year has started to work.

The specific soil and climatic conditions in Bulgaria allow growing of three major fibre plants: cotton (Gossipium hirsutum L.), flax (Linum usitatissimum L.) and hemp (Cannabis sativa L.). Of the area under fibre crops, cotton occupies the largest part. The strongest aspects of the fibre crop production and processing in the country are that the textile industry is well developed, there are traditions and good experience of the producers, capacity of industry and well-kept, durable equipment. The fibre crops are suitable for good crop rotation and they are good alternative crops for Bulgarian agriculture.

The carbohydrate crops section includes crops for both food and non-food applications, raw material for starch and ethanol production. From the cereals the main crops are wheat, maize and barley, plus potatoes and sugar beet. The cereals, as wheat and maize, are the main source for starch production. Barley is a raw material for brewery. The sugar beet and some cereals are a source for ethanol production. Potato utilisation in the industry is small and limited to chips and frozen potato production.

The major financial tool of the State policy in the area of agriculture is the State Fund 'Agriculture', established in 1995 with the Act for protection of growers. State Fund 'Agriculture' realises running financial support of growers through preferential credit lines. The financial support and encouragement of investment activity of growers, based on 8 investment programs, are the main priorities of the policy of State Fund 'Agriculture'. The users can be eligible persons, registered as 'agricultural producers', which adherence the legislative requirements can create or extend the agriculture producing, organised by them.

Another fund is the 'Tobacco' Fund, which leads ? policy for supporting tobacco producers.

The industrial crops in Bulgaria up to now are not so well monitored as food crops.

Several research institutes in the country have been focusing their R&D activities towards the development of breeding and agro-technology of the industrial crops. The work is funded by government and also by international grants.

The cultivation of industrial crops does not have a negative environmental impact and in actual fact some of them can be used for the bioremediation of soils contaminated with heavy metals and as good alternative crops for rural regions of the country.

The special legislative framework for producing and utilising industrial crops is practically absent in Bulgaria, except for plants from the group of Hemp (Cannabis) and Opium poppy (Papaver).

The trade policy in the agrarian sector during the last several years is oriented towards increasing the competitive power of Bulgarian agricultural production, the encouragement of export and more quickly integration of Bulgaria to European and world markets.

Leading of custom and trade policy through an application of foreign-trade law and custom tariff is a part of the all restructuring of the national economy, with the aim of stability and growth.