Bulgarian greenhouses shutting down due to high gas prices

Nearly 70% of all greenhouses for vegetable production have stopped producing in the winter due to high gas prices, the Association of Greenhouse Producers told state radio and television. It added that this has led to a lack of Bulgarian tomatoes and cucumbers on the domestic market.

Farmers are laying off workers and are already paying penalties under their contracts with gas suppliers. The main gas supplier is the state company Bulgargaz.

“Every year, we make an early harvest, which should be here at the moment, but this year, under these conditions, we just decided that we have no chance of surviving if we do that. It would be suicide,” said Stoyan Berberov, manager of a greenhouse in the southern town of Rakovski.

In the winter, at least 10,000 people have been laid off in greenhouses, which now grow products that do not need heating. Greenhouse producers are demanding state compensation in the event of another gas price increase.

In early January, the price increased by 30% to €67 per megawatt-hour (MWh), which is much lower than the prices of gas exchanges in Western Europe. The reason is that Bulgargaz has long-term contracts with Russia and Azerbaijan that keep prices stable.

However, farmers in the EU’s poorest country are susceptible to any increase in energy prices. The Farmers’ Association gives the example of tomatoes and cucumbers imported to Bulgaria from Greece, North Macedonia, and Turkey.

“Why do our neighbours succeed and cover foreign markets, and why do we fail? According to colleagues, the state in our country is the stepmother of producers,” said Teodora Krasteva of the Association of Greenhouses.

The organisation cites the example of Greece, where gas and electricity prices are also skyrocketing, but greenhouses continue to operate because they receive aid from the state.

Bulgarian producers are demanding 70% compensation for the fuel spent.

(Krassen Nikolov | EURACTIV.bg)