Nikolai Vulkanov
Archive photo of Agro Plovdiv
“According to InteliAgro’s calculations, the cost price of a ton of wheat, even with the high prices of nitrogen fertilizers, goes to BGN 400-420 per ton, and for sunflower it is a little over BGN 800. Domestic prices were quite a bit higher than that.” That said Nikolai Vulkanov, manager of InteliAgro on national radio this morning. The conversation with him was about an occasion protest on grain producers, which started yesterday and will continue for three days. Today, representatives of the branch have a meeting with President Rumen Radev, after which it will be decided whether the protest should stop or continue according to the original plans.
Vulkanov does not think that the situation with grain production is so tragic, since a significant part of the crop was sold at higher prices last year. “Yes, at the moment the market is such that a lot of prices are going to cost, but that does not mean that producers will sell all their production at a loss,” the economist said.
He cites data from the Customs Agency, according to which, in the last two quarters of 2022 (July-December), Ukrainian sunflower entered our country at $600/ton. “These are not dumping, but quite high market prices,” said Vulkanov. “The question is why the Bulgarian producers did not sell at these prices last year,” he asked.
The manager of InteliAgro confirmed last year’s market confusion recalled by the studio because of the state’s intention to buy grain for the state reserve, as a factor in the domestic market problems a year ago. Then there was an unspoken restriction on exports. This, according to Vulkanov, is the reason for the deterioration of the image of our country as an unpredictable supplier on the world markets.
To date, the aid provided by the EU is over 16 million euros. “I don’t know if this amount could be increased. I’m not sure these accounts are entirely adequate. It is clear that with each passing day of delayed sales, purchase prices will decrease. This does not mean that if we draw the line for the entire year and all sales, there will be some colossal losses,” said Nikolay Valkanov.
Before him, the Deputy Minister of Agriculture Todor Dzhikov said that Bulgaria will ask the EC to increase the compensation for Bulgarian grain producers to 50 million euros.