Bulgarian potato producers are predicting another 30% reduction in the acreage in 2015; an understandable result of a collapse in their income over last year and the cost of growing this vegetable in the country.

"In other European countries, as a result of the Russian embargo, potato growers received compensatory payments per hectare last autumn, and Bulgarian growers were deeply affected by the low prices of produce from Poland, Germany and France," explained the grower Todor Dzhikov.

"Bulgarian producers had contracts for exports to Russia, but the Government could not fight for compensations, and Polish and French potatoes entered the Bulgarian market and pushed prices down. With a domestic production cost of 25-27 cents per kilo, Bulgarian potato growers had to sell their produce at 22-23 cents."

Consequently, representatives of the Union of potato growers in Bulgaria are preparing a formal address to Prime Minister Boyko Borisov and the Minister of Agriculture Desislava Taneva, with a request for support to the industry, said Ventsislav Kaymakanova, chairman of the organisation.

In January 2015, the state allocated 35 million Lev (17.89 million Euro) in aid to fruit and vegetable growers, but potato producers were not included, since the European Commission notified the funds were for tomatoes, peppers and some fruits.

The only budget from which potato growers could benefit is that of the de minimis scheme, but it is intended for the whole horticultural sector, with the share for potatoes being minimal. Last year, potato growers only received 460 thousand Lev under this scheme (a little over 235 thousand Euro), and if the situation doesn't change this year, many growers are likely to give up the business.

"We cannot compete with our European colleagues," concludes producer Todor Dzhikov. He recalled that, last year, producers received only 45 Lev per hectare (23 Euro) in direct payments. Meanwhile, French growers, whose contracts for exports to Russia were cancelled because of the export ban, were compensated by the EC with € 130 per hectare.

Source - http://www.freshplaza.com