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Bulgarian Food Producers Worried about Soaring Price of Natural Gas

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Bulgarian Food Producers Worried about Soaring Price of Natural Gas

Bulgarian food producers are expecting their production costs to grow after the planned hike in the price of natural gas by 30% as of April 1st, 2017.

The consumer prices of central heating and hot water are also expected to go up.

"About ten percent of the consumer price of our products is formed by energy costs. The more we pay for energy, the more expensive pastries we will have to sell," baker Dimitar Beshikov said.

"If the price of natural gas goes up by 30%, a loaf of bread will cost by 0.15 lev more from April 1st on, because the prices of flour and logistics will also go up," he added.

Vegetable growers are even more concerned, as energy costs account for up to seventy percent of their produce's value.

Bulgaria's greenhouses use a hundred million cubic meters for natural gas for heating every year. So, the price of their vegetables will also go up from April 1st on.

Half of Bulgaria's milk processing plants are also powered by natural gas, not to mention that its price forms a substantial part of the cost of carton packaging for dairy products.

Due to the tough competition in the sector, however, dairymen say a shocking increase in the consumer price of the traditional Bulgarian white brined cheese and yellow cheese is hardly likely.

Economists advise the producers to look for other ways to compensate the increase in the price of natural gas, rather than pin higher price tags on their products.

They also say the coming increase in the natural gas price will not be that shocking, because its price has been falling steadily for several years now, while the consumer prices in Bulgaria have not changed that much. This means the merchants must have saved enough financial reserves to cushion the effect of the April 1st hike.

Francesco Sinibaldi · 15:14 · 09.04.2017
In the purity of a dream.

Modest and
sparkling virtue,
I can hear an
attraction where
a delicate
candle discovers
a fate.

Francesco Sinibaldi
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