Bulgarian farmers turn to energy crops

The domestic area of rapeseed for bio diesel has
quadrupled year-on-year to 40,000 ha in 2007.

EU
funding
The switch to
energy crops is additionally fuelled by the availability of EU funding. As of
this year, Bulgarian farmers are entitled to a top-up subsidy of 90 levs for
each hectare of energy crops. Together with the 150 levs/ha available under the
general subsidy scheme, the lump payout reaches 240 levs/ha which is 50% more
than the handout to which non-energy crop farmers are entitled, said deputy
farming minister Dimitar Peichev.

Foreign investment
There are further cash incentives for
technical crops farmed at altitude or on abandoned fields. The government will
draft a programme encouraging the farming of grain and sunseed varieties used in
energy production, said Peichev. Foreign investors are also expected to make a
play for the local technical crops market. In January 2007, food and
agricultural products provider Cargill opened a grain and oilseed trading office
in Sofia.
The company said the office will provide
further opportunities for Bulgarian farmers. Cargill’s trading activities will
primarily focus on exporting wheat, corn, sunflower seeds, barley and rapeseed,
though domestic contracts will also be executed.

Bio fuel production
The domestic facilities for the
production of bio diesel have a combined input capacity of 450,000 tons, said
Dimitar Zamfirov, chairman of the Association of the Bio Diesel Producers. The
local bio diesel refineries are expected to produce 140,000 tons in 2007. Output
will increase further to 400,000 tons annually with the delivery of new
refineries currently under construction. The local production facilities for bio
ethanol have an annual output capacity of 22,000 tons. Two new refineries are
expected to start operation in 2008, boosting total output to 66,000 tons
annually.

Note: 1 Lev = €0.51 or
US$0.67

Related link:
Dossier AllAbout Bio Energy

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