Bulgarian Oilseed Producers Face Significant Challenges

Bulgarian oilseed production has hit a decade-low in the 2024/25 marketing year, with a 15% drop in sunflower and rapeseed yields. Extreme weather conditions, rising imports, and quality issues are squeezing margins, while hopes for recovery hinge on improved weather in the coming season.

1. Decline in Production

• Bulgaria's total oilseed harvest (sunflowers, rapeseed, soybeans) reached its lowest level in a decade in the 2024/25 marketing year (MY) at approximately 1.6 million tons, down from 2.0 million tons the previous year.
• Sunflower production dropped by 15% to 1.5 million tons, and rapeseed harvest fell by 15% to 175,000 tons.

2. Weather Conditions

• An extremely hot and dry summer negatively impacted yields.
• Rainfall in late August and early September improved soil moisture but was insufficient in some regions, resulting in weaker crop conditions.

3. Market Dynamics

• Reduced domestic production has led to a deficit, necessitating increased imports and higher raw material prices.
• Processing margins are slim as raw material prices rise while processed product prices remain stagnant or decrease.

4. Imports and Exports

• Imports of rapeseed and sunflower have increased to meet the capacity needs of oil mills.
• Exports of oilseeds and processed products are limited due to tight supplies and high local prices.

5. Quality Issues

• The average oil content in sunflower seeds has decreased, with more significant variability. This complicates processing and further pressures margins.

6. Future Outlook

• Despite current challenges, there are signs of recovery in MY 2025/26, with rapeseed acreage increasing by 3%. However, recovery depends heavily on favourable weather conditions.