This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview


Around the world, Bulgaria is a respected agricultural exporter for its quality fruits, vegetables and associated food products and processes (i.e. wine, honey, tomatoes, yogurt, to name a few). The agricultural sector comprises 5.1 percent of Bulgaria’s overall GDP with total arable land of 3.7 million hectares or about 47 percent of the country’s surface area.
EU Funds, amounting to USD 4.5 billion, for the period 2014-2020, provide Bulgaria with an opportunity for technology upgrades designed to increase the country’s agricultural output and agricultural export competitiveness. All financial programs are open to any U.S. company to provide services and solutions provided that the U.S. company works with a local Bulgarian partner (additional information is available: http://www.dfz.bg/en/).
The USDOC/Commercial Service in Sofia works closely with the U.S. Embassy/Sofia office of the U.S. Dept. of Agriculture (USDA) and the Foreign Agricultural Service (FAS) who both monitor Bulgarian commodities and assist U.S. agricultural exporters in entering the Bulgarian market. Refer to the section Agricultural Sector in this Country Commercial Guide for more information on the USDA/FAS and their reports. 

 

EU standards and conformity
EU markets are subject to an extensive EU regulatory regime. U.S. agricultural equipment exporters need to ensure that their products receive the “CE” mark in order to sell in any of the 28 EU member states. The CE mark is applied to products that conform to relevant EU legislation and is able to move freely within the European single market.
U.S. products must also comply with other EU directives and regulations such as REACH (Registration, Evaluation, Authorization and Restrictions of Chemicals), WEEE (the Waste Electrical and Electronic Equipment Directive), RoHS (the Restriction of Hazardous Substances Directive), and others depending on the product imported. EU standards and conformity regimes (not all are listed here), important in obtaining the CE mark, present challenges for U.S. exporters. While it is theoretically possible to use other standards to meet essential requirements, U.S. manufacturers report that in practice the costs and uncertainty associated with not using EU-recognized standards can be prohibitive. An experienced agent or distributor can assist in navigating EU standards.

 

Agribusiness Best Prospects


Tractors & Combines: including components and parts
The sales of new tractors and new combines in Bulgaria highly depends on EU funding support. In 2018, U.S. equipment sold in Bulgaria remains well-positioned compared to the German, Italian and Turkish brands. New market niches include solutions for precisioin farming, IT, and other innovative services.

  • John Deere (JD) has been the market leader for the last few years in combines sales. In 2018, JD sold 48 combines compared to 35 in 2017;  Case contributed with 17 new sales in 2018 compared to 14 in 2017; both U.S. brands hold 33 per cent of the market;

  • John Deere has increased its sales of new tractors from 277 to 283 in 2018 whereas Case has sold 83 in 2018 compared to 94 in 2017;

  • The market for loaders has shrunk and Caterpillar and Case sold 17 (29 in 2017) and 3 respectively (23 in 2017) in 2018 which was a significant decrease in market growth; 

Overall, the market for U.S. equipment has been strong and steady in the last couple of years. All major players expect to restart new purchases after the completion of the EU financial support for buying new equipment is finalized. Nevertheless, some farmers will keep on investing in new equipment using their own funds, leasing options, or buying second-hand machines.            
Irrigation systems
Irrigation equipment has good potential although less EU financial resources are available. Private investment in the irrigation sub-sector is on the rise and several pilot projects have been completed – some with U.S. technology and equipment. Local farmers are interested in purchasing equipment from international companies that can provide excellent after sales service, spare parts, and on demand maintenance and repair.
Innovation and technology in agribusiness
Precision farming, autonomous combines and sprayers, precision planting and the use of drones are all rapidly transforming Bulgaria’s agricultural sector as Bulgarian farmers are quickly embracing new technologies and services designed to help farmers maximize the benefits and advantages of forecasting yields and making planting corrections in real time. U.S. exporters are encouraged to get ahead of the competition and market their innovative products through a reliable representative.
Trade Events
BATA AGRO
May, 2020  http://association.bataagro.org/index.php?main_page=index&sort=1a&language=en 
Organized by the Bulgarian Association of Traders of Agromachinery the exhibition takes place at a local airport field and is the largest Bulgarian trade show. 

Web Resources


U.S. Commercial Service Sofia Contact Information
Name:              Milko Minev
Position:           Commercial Specialist
Email:               milko.minev@trade.gov
Phone:              +359-2-937-5145

         

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.