The supply of quality raw cow’s milk which meets the EU microbiological standards (number of microorganisms and somatic cells) remains the chief problem before hundreds of Bulgarian dairies. The shortage of quality raw material is a serious obstacle to the sales of Bulgarian dairy products in the European market. Now, at a request by the Bulgarian Government, the EC extended until 2009 the period in which the Bulgarian meat and dairy sector companies must comply with the EU standards. The previous deadline was going to expire at the end of 2007. This decision, however, is not met equally by the companies in the two sectors.
In Bulgaria more than 70 pct of the raw cow’s milk comes from small farms in which one to three cows are bred. The owners of these farms do not have the financial means to improve the hygiene during the production of milk. The shortage of raw material which meets the EU standards has brought about a crisis for the EU to cope with. During the negotiations between Bulgaria and the EU, a postponement was agreed about the introduction of the EU standards by 2009 only for the raw cow’s milk, but not for the dairy products. Now the EC has granted a transition period also for the processing companies. After that period has expired, the dairies must offer only products from quality milk. The transition period was the result of arguments of the National Milk Processors’ Association (NMPA), filed in April with the Directorate-General Health and Consumer Protection. More than 100 SMEs are members of NMPA. At the same time, the members of the other sector organisation, Association of Milk Producers, in which largely big companies participate, complied with the EU standards long time ago. They objected to the introduction of the transition period. Also the meat processors' association does not agree with the transition period.
In the words of Dilyana Slavova, executive director of NMPA, the transition period will benefit the companies which produce white and yellow cheese and want to sell their products abroad. They will be able to export to the EU market by end-2009 even if they use milk in which the number of microorganisms exceeds that laid down in the EU norms. The reason: the period of maturing of these products is too long and therefore the microorganisms do not affect the properties and quality of the product, experts say.
Simeon Prisadashki, owner of the dairy products company Zhossi and chairman of the Association of Milk Producers, believes that the majority of the dairies should have been closed down in 2006, as they failed to introduce the measures laid down in the legislation. "The deadline was extended several times. As a result, many companies keep doing business in the dark. They are aware that they will not be expelled from the market, prefer not to make investments, and rely on undercutting the competition," Prisadashki says.
According to Kiril Vatev, owner of Tandem, another meat processing company, "the bad thing is that all the companies which met the deadlines are now at a disadvantage compared with those which ignored the regulations; they loaned money to meet the EU standards. Now the decision for the extension of the deadline is not fair to all those who have taken loans," Vatev says.
For 71 companies which make meat products and dairy products there is no worry whether or not the EC will extend the deadline; they have been licensed to sell their products in the EU market. The transition period will apply for 585 companies which are yet to prove that they qualify to sell in the EU.
As of April the European quota system for the cow’s milk producers applies also for Bulgaria. If they sell above their quota, the farmers face huge fines. According to experts, this regulation is among the reasons for the price hikes not only in Bulgaria. But the Bulgarian farmers will be given bigger quotas than those fixed in April, as, at a request by the Bulgarian Agriculture Ministry, the EC restructured part of the national quota for raw cow’s milk: instead of the initial share of 722,000 tonnes for processing versus 257,000 tonnes for direct sales, the quota was changed, and now 167,000 tonnes of raw milk will be redirected for direct sales. The sector companies expect this to result in abating the tension of the market.
22-28/09/07, P76-77
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