Bulgarian farmers in traditional costumes

The Bulgarian Post
2006-10-11 09:49:07

Subsidies worth of at least €12.6m are to be distributed amongst organic farmers and food producers in Bulgaria, as the country looks to capitalise on the growing export market in the sector, says cee-foodindustry.com.

This is aimed at encouraging high altitude, labour intensive farming through environmentally sound practices, highlights the growing importance of organic food production to the EU market, as wealthier consumers increasingly turn away from processed foods. In the lead up to the country's accession to union membership in 2007, the subsidies come as the latest sign of the bloc's desire to promote environmentally sustainable agriculture through all its member states.

“EU rules are pretty uniform in supporting the organic sector throughout the member states,” says Neil Sorensen of International Federation of Organic Agriculture Movements (IFOAM). Though once considered a niche market, the organic food sector has continued to grow and the market alone in the EU is worth around €15b.

“The EU and its member states are very supportive and have set themselves extremely high targets for organic production, adds Sorensen. At present according to IFOAM, the market is proving to be particularly strong in Western EU, and the US. About 20 per cent of the market for all food products in Sweden is organically produced, while Austria and Switzerland are catching up with 11 and 10 per cent of their markets respectively catered for by organic production.

Though demand for organic produce was expected to decline, Eastern Europe appears to be helping to drive sales. Having noticed the strong demand and high prices of organic foods, Eastern European producers are increasingly turning away from produce like genetically modified and processed foods. Countries like Poland, Hungary, and Serbia in particular are keen to capitalise on the boom for produce.

“We had expected the market to begin tabling off, after continued expansion; however it just continues to grow, there really has been a lot of development in the region,” says Sorenson. While Eastern European producers may be keen to benefit from strong sales in organic foods, domestic consumption still remains very low.

Sorenson pointed out that “Organic food is very expensive, and many people cannot simply afford it, so domestically the market is non-existent. But producers have been quick to catch on to demand in richer nations and this can only help the industry in the long run”

The project will be co-funded between the EC, who will cover 75 per cent of the costs, and the Bulgarian government who will supply the rest. It will be distributed by the country's Special Accession Programme for Agriculture and Rural Development (SAPARD) agency.

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