by Elissaveta Velianova

The latest half-year figures for Bulgarian wine exports show a negative trend - between January and June 2008, almost 48m litres of wine were exported, compared to 58m litres for the first six months of 2007. This is a result of diminishing exports of still wine, which accounts for virtually all exports. It could signal an alarming trend: with a domestic consumption of 47m litres and exports amounting to 116m litres in 2007, Bulgaria is clearly a net wine exporter.

Parallel with declining volumes, the half-year trend for the average export price is negative as well, falling from €0.83 to €0.71. Despite being a net exporter, Bulgaria has never managed to build a sustainable image, introduce strong brands or offer products that merit trading-up. For this reason, its average export prices are quite low and fluctuate depending on the direction of exports. That is, whether they are heading to Eastern European or Western countries.

In 2007 Russia took 69% of the wine exports. The second most important market was Poland, which only absorbed 21m litres. After losing out to New World competitors, Bulgaria exported respectively 3.5m and 2m litres to previous top destinations Great Britain and Germany.

Rising production costs and lower yields, down by more than 30% in 2007, affected Bulgaria’s ability to compete effectively in 2008. To make things worse, it appears that 2009 will not bring relief to the price-conscious Bulgarian exporters. The 2008 vintage is already proving a difficult one, with high summer temperatures and autumn downpours. Also, the very tangible return of Moldavian wines on the Russian supermarket shelves can certainly endanger Bulgaria’s position, as both countries compete on a commodity basis.