Bulgarian oil extraction plants are experiencing an acute shortage of raw materials

Bulgarian sunflower oil producers find themselves in a paradoxical situation: despite stable retail prices, they are forced to sell their products at a loss. This was stated by Yani Yanev, Chairman of the Association of Vegetable Oil Producers.

Statistics show surprising consistency: over five years, the price of sunflower oil has fluctuated only between 5 and 10 stotinki. “In August 2021, the wholesale price was 3.15 leva, in 2023 – 2.80 leva, in 2024 – 2.79 leva, and now it’s back to 3.15 leva,” Yanev stated. Against this backdrop, other food products have risen in price by 30-70%.

However, according to the expert, this stability doesn’t reflect the real situation. Producers are facing a sharp increase in raw material and processing costs, making their business unprofitable.

The main problem facing the Bulgarian industry is a severe shortage of raw materials despite significant production capacity. Droughts in recent years have reduced the sunflower harvest, and oilseed export bans in producing countries have limited imports.

As a reminder, Bulgaria harvested its lowest oilseed crop in the last ten years in the 2024/25 season due to extremely hot and dry summer conditions.

“We have created capacity to process 4 million tons of sunflower seeds, but this year we produced only 1.6 million tons of oil,” explains Yanev. Bulgarian companies are forced to shut down for extended periods due to a shortage of raw materials, losing competitiveness in foreign markets.

The situation is exacerbated by competition from Ukraine, which imports 2.2 million tons of crude sunflower oil and 200,000 tons of refined sunflower oil to the EU, leaving no niche for Bulgarian products. Bulgarian processors are trying to diversify production by switching to rapeseed and soybeans, but this is not enough.

According to Yanev, regulatory measures limiting raw material exports and stimulating domestic processing could be a solution. This would ensure capacity utilization and create new jobs.

This year, sunflower cultivation in the country amounted to approximately 985,000 hectares, an increase of 6-7% compared to the previous year and a record high. The harvest was expected to be between 1.8 and 2 million tons.

Tags: sunflower oil, Bulgaria, sunseed