Voluntary Report - public distribution

**Date:** 4/20/2007

**GAIN Report Number:** BU7008

BU7008

**Bulgaria**

**Fishery Products**

**Bulgarian Fish Imports Update**

**2007**

**Approved by:**

![](media/image1.wmf)Susan Reid

US Embassy

**Prepared by:**

Patrick Nord

**Report Highlights:**

Bulgaria\'s recent accession to the European Union will rpovide stimulus
for further growth and expansion in the already growing market for fish
and fishery products. Imports of fish and fishery products have
increased overall over the past 5 years, with key factors being the
decline in the local fish supply and a growing demand for varieties not
found in domestic fishing grounds. Another major factor is Bulgaria\'s
recent accession to the European Union, which changed the import tariff
regime. Very low per capita fish consumption in Bulgaria, together with
strongly growing demand, offer excellent opportunities for U.S.
exporters to expand sales to this market.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Sofia \[BU1\]

\[BU\]

Summary
...................................................................................................................................................
3

Production...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.....3

Black Sea
Production.....................................................................................................................3

**Table 1: Black Sea
Production**...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...4

Freshwater
Production..................................................................................................................5

**Table 2:** **Freshwater
Production**..............................................................................5

Danube River
Production...............................................................................................................5

**Table 3: Danube River
Production**..........................................................................5

Aquaculture
Production..................................................................................................................5

> **Table 4: Aquaculture
> Production**............................................................................6

Consumption................................................................................................................................................6

> **Table 5:
> Consumption**..............................................................................................................7

Trade...............................................................................................................................................................7

Imports.............................................................................................................................................7

**Table 6: Value of Imports by
Country**...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...8

> **Table 7: Quantity of Imports by
> Country**\...\...\...\...\...\...\...\...\...\...\...\...\...\...\....9
>
> **Table 8: Value of U.S. Imports by
> Species**...\...\...\...\...\...\...\...\...\...\...\...\...\....10
>
> **Table 9: Comparison of Duties on Major U.S. Imports to
> Bulgaria**...\....11
>
> *Best Opportunities for U.S. Exports to
> Bulgaria*..............................................12
>
> *Challenges Facing U.S. Exports to
> Bulgaria*......................................................12
>
> Exports............................................................................................................................................12

**Table 10: Quantity of Bulgarian
Exports**\...\...\...\...\...\...\..................................13

**Table 11: Value of Bulgarian
Exports**..................................................................13

Marketing and
Distribution......................................................................................................................13

**Appendices**

Appendix 1: Black Sea Production Numbers (metric
tons)................................................15

Appendix 2: Freshwater Fish Production Numbers (metric
tons).....................................16

Appendix 3: Danube River Fish Production Numbers (metric
tons)................................17

Appendix 4: Bulgarian Exports (metric
tons)........................................................................18

Appendix 5: Bulgarian Exports
(USD).....................................................................................19

Appendix 6: Bulgarian Fish
Importers.....................................................................................20

S**ummary**

Over the past three years the fish and fish products market has
continued the growth trend that started in 2000. Bulgaria has imported
higher quantities (both in value and tons) of fish products since 2003.
This growth and development is reflected by the increasing number of
retailers and food service outlets offering a larger variety of fish and
fish products (2003: 50-60 varieties; 2007: 70+). Increasing consumer
income and awareness and greater availability of fish are the primary
factors contributing to the expansion of the Bulgarian market. These
factors and a generally more liberal trade regime with Bulgaria's
accession to the European Union are expected to contribute to further
growth in the Bulgarian market.

Domestic supply of fish has declined since 2002, from 15,419 MT in 2002
to 5,434 MT in 2005. Fish farming is becoming a larger industry in
Bulgaria with expansion into the market specifically targeted for
exports (total number of fish farms: 2003: 127; 2005: 204). Value of
aquaculture production is also significantly increasing\-- mussel farms
have more than quadrupled in number since 2003 (2003: 3; 2006: 15)

U.S. imports have decreased since 2003 in tonnage but increased in value
(2003: 7,160 MT, 2006: 3,265 MT; 2003: USD 3,064,000, 2006: USD
4,069,000). A shift towards higher value/higher quality fish and fish
products is occurring as consumers are becoming aware of the previously
unavailable varieties. One of the major challenges facing U.S. imports
is the lack of knowledge. Consumers are generally unaware of the
differences in fish products and often do not know how to prepare fish
other than trout, mackerel, carp and sprat.

**Production**

Prior to 1989, Bulgaria produced large quantities of seafood, and the
majority of the products available were locally produced fish (mackerel,
trout, carp and sprat) with very limited imports. After 1989 the
industry went through a major restructuring as the fleets, fisheries and
processing plants were privatized. In 2000, the industry started
registering its first years of growth but since 2002 the total catch has
declined each year. Measures have been implemented by the Ministry of
Agriculture to increase the fish population and total catch numbers. A
computerized system is being implemented by GOB to provide up to date
and accurate figures on the quantity of fish caught and prices.

**Black Sea Production**

Pre-1989, Bulgaria's sea fishing fleet was state owned and operated.
Government regulations were such that the main fish that were available
were those that could be caught by the national fleet, with exports
being minimal. To meet domestic demand, the Bulgarian national fleet
significantly over-fished the Black Sea, and the population of mackerel,
turbot, sprat and anchovies was decimated. A second factor that has
reduced supply is pollution levels in the Black Sea, often in the form
of introduction of non-native species.

Privatization of the fishing fleet post-1989 initially caused a drop in
the total catch from the Black Sea. Private companies became fully
functional by 1999 and the total catch numbers rose, but since 2002 the
total catch has significantly declined, especially of the most popular
fish species --- mackerel and turbot. Domestic mackerel supply is no
longer large enough to meet domestic demand; in 2005, 5,356 MT of
mackerel was imported from the United States.

-   Sprat --- in 2005 sprat accounted for more than three quarters of
    the total catch, down from the nearly 90 percent in 2002 and 2003
    but up from 50 percent in 2004. Sprat is not in high demand in
    Bulgaria or as an export; in 2005 average domestic price per
    kilogram was between .75 and .95 USD (source: Bulgarian Ministry of
    Agriculture, Agency of Fisheries and Aquaculture).

-   Mackerel --- mackerel is the most consumed fish in Bulgaria and is
    the fish with which consumers are most familiar. Recent increases in
    price of U.S. Atlantic mackerel have caused some Bulgarian importers
    (mainly those working in the lower end of the sector) to import from
    other third countries- mainly South American imports of lower
    quality Pacific mackerel.

-   Turbot --- the Government of Bulgaria (GOB) imposed quotas to
    prevent over-fishing of this species in the Black Sea. A quota of 50
    metric tons (MT) was set in 2003, but this quota was not meet (40.8
    MT produced). In 2007 the GOB set the quota at 30 MT.

**Table 1: Black Sea Production**

  ------------------------------ ------------ ------------ ----------- -----------
  **2002-2005 Black Sea Fish                                           
  Production (metric tons)**                                           

  **Fish Species**               *2002*       *2003*       *2004*      *2005*

  Sprat (*Sprattus Sprattus*)    11,595.0     9,154.5      2,889.1     2,574.7

  Sea Snails (*Rapana spp.*)     698.0        324.6        2,427.9     510.9

  Black Sea Anchovy/ sprat       237.0        141.0        87.9        14.3
  (*Engraulis Encrasicholus                                            
  Ponticus*)                                                           

  Goby (*Gobidae*)               141.5        125.2        78.8        48.9

  Mediteranian Horse Mackeral    141.5        141.6        73.9        29.4
  (*Trachurus Mediterraneus                                            
  Ponticus*)                                                           

  Other                          735.3        322.1        258.0       230.1

  *Total*                        *13,548.3*   *10,209.0*   *5,815.6*   *3,408.3*
  ------------------------------ ------------ ------------ ----------- -----------

*Source: Bulgarian National Agency of Fisheries and Aquaculture- 2006
numbers not available as of April 2007.*

*See appendix for full table*

**Freshwater Production**

Total freshwater catch declined 18 percent in 2005 as compared to 2004.
Traditionally Bulgarian demand is highest for carp although demand for
all freshwater fish is highest in early December due to religious
holidays. Trout is also relatively popular.

-   Common carp --- catch fell more than 25 percent (from 968 MT in 2004
    to 716 MT in 2005), but it continues to be the most common
    freshwater fish.

-   Trout --- freshwater catch of trout was about 20 MT in 2005,
    compared with more than 50 MT in 2003.

**Table 2: Freshwater Fish Production**

  --------------------------------------- ----------- ----------- ----------- -----------
  **2002-2005 Internal Bodies of Water                                        
  Fish Production (metric tons)**                                             

  **Fish Species**                        *2002*      *2003*      *2004*      *2005*

  Common Carp (*Cyprinus Carpio*)         521.2       752.0       967.5       716.4

  Silver Carp (*Hypophthalmichthys        307.2       388.9       490.2       528.4
  Molitrix*)                                                                  

  Gold Fish (*Carassius Auratus*)         247.2       307.4       300.0       199.4

  Wels Catfish (*Silurus Glanis*)         34.1        25.9        48.3        40.8

  Rudd (*Scardinius Erythrophthalmus*)    44.7        35.2        32.0        25.5

  Other                                   303.0       284.8       186.5       153.5

  *Total*                                 *1,457.4*   *1,794.2*   *2,024.5*   *1,664.0*
  --------------------------------------- ----------- ----------- ----------- -----------

*Source: Bulgarian National Agency of Fisheries and Aquaculture- 2006
numbers not available as of April 2007.*

*See appendix for full table*

**Danube River Production**

Fish supply from the Danube is minimal, accounting for less than seven
percent of the total catch in 2005. As with other freshwater sources,
the fish primarily sought is carp. Challenges similar to those in the
Black Sea supply have occurred with Danube river supplies ---
over-fishing and pollution --- and quotas are now in place. Declining
total catch numbers are being supplemented by increased production at
fish farms.

-   Carp --- in 2005 various species of carp accounted for nearly one
    third of all fish production on the Danube. Danube carp remains
    relatively popular, with domestic prices in 2005 between 2.32 and
    2.61 USD per kilogram.

-   Danube herring --- although 2002 supply was significantly higher
    than in previous years (approximately four times higher than 2001),
    it has dropped off since. In 2005, approximately 16 MT were
    produced.

**Table 3: Danube River Fish Production**

*Source: Bulgarian National Agency of Fisheries and Aquaculture- 2006
numbers not available as of April 2007.*

*See appendix for full table*

**Aquaculture**

Fish farms and aquaculture are becoming more important and have a larger
role on the Bulgarian fish market. Since 2002, there have been
significant increases in the number of fish farms for fresh and
saltwater fish/fish products. In the years just prior Bulgaria's
accession to the EU, subsidies were available for private investment
projects, totaling 50 percent of the cost of the project. These
subsidies will recommence in a slightly different form at the end of
2007 or beginning of 2008.

-   Fish farms --- the number of fish farms grew significantly from 2003
    to 2005 (127 in 2003 to 204 in 2005). Production at fish farms also
    increased during this time, both of fish intended for stock
    (fingerlings) and of mature fish (2003: 15,794,559 total
    fingerlings; 2005: 26,226,073 fingerlings; 2003: 2,898 MT total
    fish; 2005: 4,165 MT total fish).

    -   Warm water farms (mainly carp) --- 123 (increase of more than 60
        percent from 2004), of which 118 are carp farms, 4 sturgeon and
        1 decorative fish.

    -   Cold water farms (trout) --- 59 (increase of 30 percent from
        2003)

    -   Mixed farms --- 8 (increase from 5 in 2003)

-   Mussels --- since 2004, the number of mussel farms has more than
    doubled (2004: 7; 2006: 15). In 2007 the trend is expected to
    continue. Farms are also using methods that are more efficient and
    yield higher supply of higher quality products (2003: 15 MT; 2005:
    171 MT)

-   Common carp --- increase from 881 MT in 2004 to 1,313 MT in 2005.
    Aquaculture supply of carp more than compensates for the fall in
    other areas.

-   Trout --- supply has increased from 880 MT in 2003 to 1,549 MT in
    2005.

**Table 4: Aquaculture Production**

  -------------------------- ----------- ----------- ----------- -----------
  **2002- 2005 Aquaculture                                       
  Production (metric tons)**                                     

  **Fish Species**           *2002*      *2003*      *2004*      *2005*

  Steelhead Trout            961.0       880.0       1,555.4     1,549.2

  Common Carp                1,099.0     1,091.0     881.0       1,313.2

  Bighead Carp               339.0       281.0       521.1       428.1

  Russian Sturgeon           80.0        144.0       6.7         281.0

  Chanel Catfish             20.0        174.0       0.0         171.2

  Black Sea Mussel           0.0         15.0        117.7       170.6

  Grass Carp                 34.0        63.0        71.6        110.5

  European Catfish           37.0        6.0         17.8        39.8

  Great Sturgeon             0.0         3.4         3.7         21.5

  Balkan Trout               11.0        4.4         4.4         8.2

  Other                      197.0       236.2       68.6        71.7

  *Total*                    *2,778.0*   *2,898.0*   *3,248.0*   *4,165.0*
  -------------------------- ----------- ----------- ----------- -----------

*Source: Bulgarian National Agency of Fisheries and Aquaculture- 2006
numbers not available as of April 2007.*

**Consumption**

Bulgaria consumes the least amount of fish per capita in the European
Union, and is one of the lowest consumers of fish and fishery products
worldwide. Consumption is increasing but continues to be comparatively
quite low (2005: 4.2 kg/person/year; U.S.: 16 kg/person/year). There are
problems with underreporting but these are not significant enough to
bring Bulgaria's consumption in line with world averages. Consumption
has increased in recent years as Bulgarian consumers are becoming more
aware of the health benefits of seafood. As the available options for
protein will be more limited due to increased restrictions on red meat
imports it is likely that consumers will increase consumption of fish
and fishery products.

**Table 5: Fish Consumption**

  ---------------- --------------- --------------- --------------- ---------------
  **Fish and Fish                                                  
  Products                                                         
  Consumed (kg/per                                                 
  person/year)**                                                   

  * *              *2002*          *2003*          *2004*          *2005*

  kg               3.5             3.8             4.3             4.2
  ---------------- --------------- --------------- --------------- ---------------

*Source: Bulgarian National Agency of Fisheries and Aquaculture- 2006
numbers not available as of April 2007*

Growth is mainly focused on high value and specialty fish and fish
products, previously unavailable on the market. Large supermarkets
(hypermarkets) are expanding selection and availability of products to
consumers in large cities, but many towns and villages lack consistent
access to a variety of frozen and fresh fish and high quality fish
products.

-   Super- and Hypermarkets --- seven major super and hypermarket chains
    are working in Bulgaria; two (Metro and Piccadilly) offer fresh
    seafood at specialty stands in each store. The others offer frozen
    and cured seafood products.

-   Specialty stores-there continues to be a number of small specialty
    shops that sell only fresh fish. These are the primary source of
    fish and fish products for Bulgarian consumers.

-   Restaurants- in 2004 the first seafood restaurant chain (Captain
    Cook) opened; they continue to be the only national chain although
    many local fish restaurants exist along the Danube river and Black
    Sea. In February 2007, 50,000+ people ate at Captain Cook's largest
    restaurant. Other restaurants offer a limited selection of fish,
    often tied to holidays or religious observances.

    -   Octopus, calamari, sea bream and mussels are in highest demand
        at specialty restaurants

    -   The market for lobster and crab at specialty restaurants is
        increasing

    -   Sushi is beginning to enter the Bulgarian market, but
        restaurants generally offer limited selection and are only in
        large cities. The U.S. Embassy cafeteria serves sushi one day
        per week.

**Trade**

Bulgaria is a net importer of fish and fishery products. The majority of
all fish and fishery products are frozen (80+ percent) with 70+ percent
of these being mackerel. The United States, Canada and the European
Union were major suppliers of fish and fishery products in 2005, with
the same trend expected to continue. Primary exports from Bulgaria are
sea snails and processed fish products (conserves, caviar etc). Bulgaria
exported primarily to Romania, Japan and the European Union.

**Imports**

The total size of the import market is estimated at 27,000 MT for 2006
and it is expected to trend upward in 2007. Total value of imports in
2006 is estimated at nearly USD 27 million; due to increasing prices of
fish and fishery products, increased imports of high value fish products
and increase in total fish imports, Post projects this figure to
increase by at least 10 percent in 2007. U.S. share of imports declined
from 37 percent in 2004 to 14 percent in 2006. The value of U.S. imports
tripled from 2004-2005 but declined by about a third from 2005-2006 (USD
2,678,000; 2005: USD 6,332,000; 2006: USD 4,070,000).

**Table 6: Value of Imports by Country (USD)**

  ------------- ------------- -------------- -------------- --------------
  **2003-2006                                               
  Value of                                                  
  Imports**                                                 

  **Country**   *2003*        *2004*         *2005*         *2006*

  United States 3,562,976     3,970,303      3,343,271      2,877,923

  Canada        2,182,286     2,003,172      2,291,744      3,946,057

  Greece        754,022       1,111,420      1,511,473      1,775,587

  Spain         943,166       616,327        1,959,320      1,200,020

  Argentina     816,681       1,347,199      1,293,557      1,224,911

  Taiwan        35,664        85,997         1,559,887      1,949,073

  Norway        561,279       948,293        865,195        1,000,524

  Chile         323,650       548,873        910,746        1,566,726

  Italy         45,007        59,663         259,064        2,648,116

  China         652           54,702         941,777        1,883,607

  Ireland       1,854,698     369,230        412,590        72,095

  Germany       624,980       620,175        570,805        585,498

  Netherlands   447,182       977,126        553,475        192,395

  Denmark       265,610       211,589        838,268        358,666

  Great Britain 673,889       880,055        75,450         31,245

  New Zealand   57,175        277,252        569,713        508,249

  Japan         0             173            71,400         1,186,229

  Belgium       140,188       131,848        332,923        552,633

  Peru          0             0              0              1,000,488

  Lithuania     395,623       184,958        192,496        224,507

  Total         14,924,011    15,258,323     19,694,890     26,776,093
  ------------- ------------- -------------- -------------- --------------

*Source: Bulgarian Customs Data, 2007*

Bulgarian consumers are gradually increasing their demand for mid- to
high-quality fish not previously available, although frozen mackerel
continues to be the top U.S. export to Bulgaria (2006: 62 percent of
value and 73 percent of imports by weight). The most notable movement
has been in the salmon and lobster markets. In 2004, the United States
exported 16.6 MT of Pacific salmon (USD 19,000) to Bulgaria; in 2006,
U.S. exports of Pacific salmon were more than 105 MT (USD 316,000).
Exports from the United States of lobster have more than doubled in both
weight and total value (2004: .3 MT, USD 6,000; 2006: .7 MT, USD
16,000).

**Table 7: Quantity of Imports by Country**

  ------------------- ------------ ------------ ------------ ------------
  **2003-2006 Fish                                           
  and Fishery Product                                        
  Importers (metric                                          
  tons)**                                                    

  **Country**         *2003*       *2004*       *2005*       *2006*

  United States       7,169.7      8,352.5      5,812.1      3,889.6

  Canada              4,112.0      3,777.0      4,174.1      6,555.8

  Taiwan              39.4         65.5         2,901.8      3,355.0

  Argentina           1,106.1      1,471.9      1,595.3      1,296.8

  Ireland             3,211.8      697.0        775.0        155.9

  Spain               808.7        528.3        2,196.7      1,040.7

  Chile               519.4        691.3        1,040.4      1,018.7

  Great Britain       1,178.9      1,628.4      119.0        24.8

  Netherlands         403.2        1,606.8      674.9        227.0

  China               0.0          25.1         649.7        1,987.8

  Greece              729.8        504.7        493.6        658.8

  Japan               0.0          0.0          95.2         2,113.3

  Norway              353.4        1,019.0      287.8        414.8

  New Zealand         59.4         374.1        631.4        526.3

  Peru                0.0          0.0          0.0          1,368.2

  Estonia             0.0          39.0         76.1         978.4

  Uruguay             223.3        214.8        269.2        336.1

  Germany             281.9        312.8        244.7        181.0

  Lithuania           435.6        259.7        148.2        166.8

  Turkey              393.6        138.4        295.2        52.1

  Total               22,430.6     22,482.2     23,275.0     27,741.3
  ------------------- ------------ ------------ ------------ ------------

*Source: Bulgarian Customs Data, 2007*

Imports of hake, a mid-price fish, have almost quadrupled in value and
more than doubled in weight since 2004 (2004: 239 MT; 2006: 574.3 MT;
2004: USD 225,000; 2006: USD 807,000). It is a fish that is popular with
consumers and is in constant demand. Bulgarian importers expect this
trend to continue.

**Table 8: Value of U.S. Exports to Bulgaria**

  ------------------- ---------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
  **Value of U.S.                                                                                                                                                                                                                        
  Exports to Bulgaria                                                                                                                                                                                                                    
  (1,000 USD)**                                                                                                                                                                                                                          

  *Category*          *HTS-6*    [*2002*](javascript:MonthlyReport(2002,2002,0))   [*2003*](javascript:MonthlyReport(2003,2003,0))   [*2004*](javascript:MonthlyReport(2004,2004,0))   [*2005*](javascript:MonthlyReport(2005,2005,0))   [*2006*](javascript:MonthlyReport(2006,2006,0))

  Trout, live         030191     0                                                 0                                                 9                                                 0                                                 0

  Carp, live          030193     0                                                 0                                                 27                                                0                                                 0

  Fish live, except   030199     0                                                 0                                                 21                                                35                                                96
  trout, eel or carp                                                                                                                                                                                                                     

  Halibut, fresh or   030221     0                                                 0                                                 0                                                 9                                                 0
  chilled, whole                                                                                                                                                                                                                         

  Herring, fresh or   030240     0                                                 154                                               0                                                 0                                                 0
  chilled, whole                                                                                                                                                                                                                         

  Mackerel, fresh or  030264     68                                                351                                               550                                               704                                               0
  chilled, whole                                                                                                                                                                                                                         

  Pacific salmon      030319     71                                                101                                               19                                                705                                               316
  (other than                                                                                                                                                                                                                            
  sockeye) excluding                                                                                                                                                                                                                     
  fillets, livers,                                                                                                                                                                                                                       
  roes, frozen                                                                                                                                                                                                                           

  Herrings, frozen,   030350     0                                                 0                                                 0                                                 0                                                 10
  whole                                                                                                                                                                                                                                  

  Whole, Frozen       030374     570                                               2,042                                             1,317                                             3,910                                             2,531
  Mackerel                                                                                                                                                                                                                               

  Dogfish and other   030375     0                                                 0                                                 10                                                0                                                 0
  sharks, Frozen,                                                                                                                                                                                                                        
  Whole                                                                                                                                                                                                                                  

  Frozen, Whole Hake  030378     317                                               93                                                225                                               571                                               807

  Fish nes, frozen,   030379     0                                                 312                                               399                                               359                                               0
  whole                                                                                                                                                                                                                                  

  Fish fillets,       030420     0                                                 0                                                 38                                                31                                                125
  frozen                                                                                                                                                                                                                                 

  Lobsters (Homarus), 030622     0                                                 0                                                 6                                                 10                                                16
  not frozen                                                                                                                                                                                                                             

  Mussels, frozen,    030739     0                                                 0                                                 0                                                 0                                                 113
  dried, salted or in                                                                                                                                                                                                                    
  brine                                                                                                                                                                                                                                  

  Cuttle fish, squid, 030749     0                                                 11                                                57                                                0                                                 55
  frozen, dried,                                                                                                                                                                                                                         
  salted or in brine                                                                                                                                                                                                                     

  *TOTAL*                        *1,026*                                           *3,064*                                           *2,678*                                           *6,334*                                           *4,069*
  ------------------- ---------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------

*Source: U.S. Customs Data, 2007*

Bulgaria's accession to the European Union will provide a positive
stimulus to the fish market as a whole and will make fish imports more
attractive. Fish imports are likely to increase because the trade regime
of the European Union is friendlier to imports than Bulgaria's trade
regime pre-accession, with similar or lower tariffs. Noteworthy is the
drop by more than half (from 5 percent to 2 percent) of the tariff on
Pacific salmon imports, a product that has been increasing in the past 3
years.

Whole mackerel imports have the potential to be affected; in previous
years tariffs have been 10 percent for fresh or chilled and 5 percent
for frozen. Under the harmonized trade regime, there are two sets of
seasonal tariffs---January 1^st^- February 14^th^ and June 16^th^-
December 31^st^, the tariff is 20 percent; February 15^th^- June 15^th^,
0 percent for whole mackerel. Bulgarian health code stipulates that
frozen mackerel can be sold for human consumption up to 2 years after
the catch date. Major importers of American frozen mackerel have plans
to shift from importing year-round to primarily importing during this
tariff-free period. However, U.S. exports of frozen mackerel are not
likely to be greatly affected by the changes in the import regime.

**Table 9: Comparison of Duties on Major U.S. Imports to Bulgaria
(percent)**

  ----------------- ------------ ------------------ ---------------------------
  ***Category***    ***HS-6***   ***2006 (Bulgarian ***2007 (EU harmonized
                                 Tariffs)***        Tariffs)***

  Mackerel, fresh   030264       10                  January 1- February 14,
  or chilled, whole                                 June 16 to December 31: 20,
                                                    Other: 0

  Pacific salmon    030319       5                  2
  (other than                                       
  sockeye)                                          
  excluding                                         
  fillets, livers,                                  
  roes, frozen                                      

  Whole, Frozen     030374       5                   
  Mackerel                                          

  Frozen, Whole     030378       15                 15
  Hake                                              

  Lobsters          030622       10                 8 (live or whole), 10
  (Homarus), not                                    (other)
  frozen                                            

  Mussels, frozen,  030739       10                  10 or 8, depending on
  dried, salted or                                  species
  in brine                                          

  Cuttle fish,      030749       10                  8 or 6, depending on
  squid, frozen,                                    species
  dried, salted or                                  
  in brine                                          
  ----------------- ------------ ------------------ ---------------------------

*Source: European Union Harmonized Tariff Schedule: October 17, 2006*

For full duty listings, visit:

<http://eur-lex.europa.eu/LexUriServ/site/en/oj/2006/l_301/l_30120061031en00010880.pdf>

Bulgaria is currently facing challenges transitioning to EU
requirements. U.S. shipments have been delayed at ports of entry due to
unclear understanding by the GOB and Bulgarian border control/veterinary
service as to the exact nature of the EU requirements. Post has worked
and will continue to work with these agencies and importers to ensure
access for U.S. exports to the Bulgarian market. Currently, U.S. imports
do not fall into the "third country" category of the EU; the U.S. and EU
are discussing policies that will apply solely to U.S. imports, but
these currently are not in place. For more information regarding how to
import fish and fishery products into the European Union, visit
<http://www.buyusa.gov/europeanunion/summary_four_six.html> or contact
FAS/Sofia.

**Best opportunities for U.S. Exports to Bulgaria**

Bulgarian companies are actively seeking to expand the selection of fish
available on the Bulgarian market, especially mid- to high-value
products. Imports of U.S. Atlantic mackerel are likely to continue to
decline, due to the availability of lower priced, although lower quality
products from other countries (mainly South American countries). Food
service outlets are providing a major impetus for this shift, with an
increasing number offering high quality fish as a regular menu item.
Good opportunities exist for U.S. exports of lobster and salmon, as both
currently face lower customs duties than in 2006 and increased consumer
awareness. Other opportunities exist for U.S. exports to Bulgaria to be
repackaged and sold as value added goods throughout the European Union.
A detailed list of importers is attached to this report.

**Challenges Facing U.S. Exports to Bulgaria**

In the short term (6 to 12 months), Bulgaria will face challenges
applying new EU regulations. Many of the regulations and certification
requirements are either partially or not at all translated into
Bulgarian, which increases the likelihood of confusion on the part of
border controllers. FAS/Sofia is working with Bulgarian border control,
veterinary services and major importers to help clarify and explain the
issues connected to imports of fish and fish products.

A structural challenge exists in the limited knowledge of fish and
fishery products on the part of Bulgarian consumers. Individual incomes
are rising, and consumers are beginning to have more disposable income
for high quality products. Consumers, however, are often not familiar
with many of the high-value fish varieties. This unfamiliarity prompts
many super- and hypermarkets to be reluctant in stocking these
varieties. Restaurants are much more likely to test new products, but
the small quantities they demand creates a challenge for U.S. exporters.

**Bulgarian Exports**

Bulgarian exports, in tonnage, are primarily shipped to other countries
in the region (Romania, Greece and Turkey) although relatively large
quantities are also exported to Japan and Germany. Total exports have
fallen since 2003 by more than 20 percent (2003: 5,773 MT; 2006: 4,413
MT) but total value of exports has significantly risen as exports of
higher value products, such as sea snails and roe have grown.

For example, although Romania imported 100+ MT more of fish and fishery
products than Japan in 2006 (Romania: 677 MT; Japan 545 MT) the value of
the imports to Japan were more than triple the value of Romania's
imports (Romania: USD 834,907; Japan: USD 2,671,935). Companies that
have traditionally imported and sold fish and fishery products with
little additional processing have begun to repackage products in efforts
to sell products that have added value.

**Table 10: Quantity of Bulgarian Exports (metric tons)**

  -------------------------- ----------- ----------- ----------- -----------
  **2003-2006 Quantity of                                        
  Bulgarian Exports (metric                                      
  tons)**                                                        

  **Type of Fish**           *2003*      *2004*      *2005*      *2006*

  Live fish                  120.1       131.0       118.1       160.8

  Fish, fresh or chilled,    22.7        31.4        19.2        6.1
  whole                                                          

  Fish, frozen, whole        1,437.6     1,399.3     770.1       980.2

  Fish fillets, fish meat,   7.6         36.4        113.7       336.2
  mince except liver, roe                                        

  Fish, cured, smoked, fish  1,319.2     1,352.7     763.1       227.3
  meal for human consumption                                     

  Crustaceans                0.7         2.0         0.5         1.2

  Mollusks                   2,640.7     2,324.7     2,067.1     2,701.5

  Total                      5,548.6     5,277.5     3,851.8     4,413.3
  -------------------------- ----------- ----------- ----------- -----------

*Source: Bulgarian Customs Data, 2007*

**Table 11: Value of Bulgarian Exports (USD)**

  -------------------- ----------- ------------ ------------ --------------
  **2003-2006 Value of                                       
  Bulgarian Exports                                          
  (USD)**                                                    

  **Type of Fish**     *2003*      *2004*       *2005*       *2006*

  Live fish            188,840     240,625      118          330,833

  Fish, fresh or       56,627      85,198       55,995       25,056
  chilled, whole                                             

  Fish, frozen, whole  938,430     1,193,082    1,107,381    1,806,759

  Fish fillets, fish   28,734      146,861      565,561      1,514,392
  meat, mince except                                         
  liver, roe                                                 

  Fish, cured, smoked, 2,547,877   1,328,036    1,926,283    1,967,222
  fish meal for human                                        
  consumption                                                

  Crustaceans          6,257       12,429       6,456        9,119

  Mollusks             4,474,556   5,938,108    5,775,288    7,820,967

  Total                8,241,321   8,944,339    9,437,082    13,474,348
  -------------------- ----------- ------------ ------------ --------------

*Source: Bulgarian Customs Data, 2007*

**Distribution and Marketing**

Major advances have been made over the past three to five years in terms
of distribution and marketing. One company claims that their products
(canned fish products) are in 90+ percent of retail outlets in Bulgaria.
Companies working with fresh and frozen fish products have developed
individual distribution networks, with warehouses and refrigerated
trucks for delivery around the country. This allows for fresh and frozen
fish products to be delivered to a much wider market than was possible
even a few years ago.

Marketing is still not well developed for fish and fish products; the
major fish restaurant chain does not heavily advertise nor do
restaurants do fish promotions. At the Hilton Hotel in Sofia, there is a
weekly seafood night which is generally well attended. In 2006 the
restaurant hosted a weekend promotion focusing on oysters; it was quite
popular and the restaurant hosted a similar promotion in February, 2007.
Supermarkets and restaurants continue to rely mainly on word of mouth
and general consumer trends, which accounts for the relatively slow
growth in the market.

FAS/Sofia worked with a local supermarket chain to generally promote
American food products in late March, 2007. Part of the promotion was of
American fish and fishery products, and included a demonstration of
salmon cooking. Similar promotions in the future will increase public
familiarity and would likely increase demand for fish.

**Appendix 1: Black Sea Production Numbers (metric tons)**

  ----------------------------------- ---------- ---------- --------- ---------
  **2002-2005 Black Sea Fish                                          
  Production (metric tons)**                                          

  **Fish Species**                    *2002*     *2003*     *2004*    *2005*

  Sprat (Sprattus Sprattus)           11,595.0   9,154.5    2,889.1   2,574.7

  Sea Snails (Rapana spp.)            698.0      324.6      2,427.9   510.9

  Black Sea Anchovy/ sprat (Engraulis 237.0      141.0      87.9      14.3
  Encrasicholus Ponticus)                                             

  Goby (Gobidae)                      141.5      125.2      78.8      48.9

  Mediteranian Horse Mackeral         141.5      141.6      73.9      29.4
  (Trachurus Mediterraneus Ponticus)                                  

  Danube Herring (Caspialosa Pontica) 106.3      55.8       77.9      37.8

  Spiny Dog-fish (Squalus Acanthias)  100.0      51.3       47.2      14.5

  Bluefish (Pomatomus Saltatrix)      101.5      18.2       4.7       82.9

  Black Sea Turbot (Psetta Maeotica)  135.5      40.8       16.2      12.7

  Striped Mullet (Mugil Cephalus)     71.0       32.6       17.9      6.4

  Blue Mussel (Mytilus                55.0       15.1       33.7      10.4
  Galloprovincialis)                                                  

  Atlantic Bonito (Trachurus          0.0        22.6       17.8      56.2
  Mediteranneus Ponticus)                                             

  Red Mullet (Mullus Barbatus)        33.0       35.9       17.0      1.1

  Garpike (Belone Belone)             33.6       8.3        4.1       2.2

  Leaping Mullet (Liza Saliens)       17.7       15.6       7.8       0.8

  Whitting (Merlangius Euxinus)       15.5       12.9       1.5       2.7

  Snouted Sole (Solea Nasuta)         9.5        9.0        3.0       0.3

  Shore Rockling (Gaidropsarus        20.0       0.0        1.0       0.0
  Mediterraneus)                                                      

  European Seabass (Dicentrarchus     11.0       0.3        1.0       0.0
  Labrax)                                                             

  European Flounder (Platichthys      9.0        1.0        2.0       0.0
  Flesus Luscus)                                                      

  Golden Grey Mullet (Liza Aurata)    7.6        1.3        0.0       0.5

  Great Sturgeon (Huso Huso)          3.5        0.6        2.5       0.6

  Sturgeon (Acipenser Stellatus)      3.0        0.3        1.0       0.0

  Russian Sturgeon (Acipenser         2.0        0.0        0.5       0.0
  Gueldenstaedti)                                                     

  Sandsmelt (Atherina Mochon Pontica) 0.1        0.4        1.0       0.8

  Prawns (Leander spp.)               0.5        0.1        0.2       0.2

  Totals                              13,548.3   10,209.0   5,815.6   3,408.3
  ----------------------------------- ---------- ---------- --------- ---------

**Appendix 2: Freshwater Fish Production Numbers (metric tons)**

  --------------------------------------- --------- --------- --------- ---------
  **2002-2005 Freshwater Fish Production                                
  (metric tons)**                                                       

  **Fish Species**                        *2002*    *2003*    *2004*    *2005*

  Common Carp (Cyprinus Carpio)           521.2     752.0     967.5     716.4

  Silver Carp (Hypophthalmichthys         307.2     388.9     490.2     528.4
  molitrix)                                                             

  Gold Fish (Carassius Auratus)           247.2     307.4     300.0     199.4

  Wels Catfish (Silurus Glanis)           34.1      25.9      48.3      40.8

  Rudd (Scardinius Erythrophthalmus)      44.7      35.2      32.0      25.5

  Grass Carp (Ctenopharyngodon Idella)    23.2      29.5      26.9      31.4

  Steelhead Trout (Salmo Gairdneri)       21.4      46.5      21.8      16.3

  European Perch (Perca Fluviatilis)      27.4      42.3      16.0      11.0

  European Pikeperch (Stizostedion        18.1      25.1      21.9      16.5
  Lucioperca)                                                           

  Bleak (Alburnus Alburnus)               19.4      23.3      24.0      11.4

  Various other fish                      61.0      3.1       0.9       0.5

  Bream (Abramis Brama)                   5.5       29.8      9.8       10.6

  Channel Catfish (Ictalurus Punctatus)   18.2      11.3      18.3      7.2

  Sneep (Chondrostoma Nasus)              17.1      14.2      6.7       2.3

  European Chub (Leuciscus Cephalus)      17.3      13.1      5.4       2.8

  Northern Pike (Esox Lucius)             5.8       7.2       9.7       9.3

  Roach (Rutilus Rutilus)                 14.2      10.1      4.8       2.4

  Danube Crayfish (Astacus Leptodactylus) 7.7       3.5       6.0       4.2

  (Barbus Cyclolepis)                     0.8       1.0       0.0       17.6

  Brown Trout (Salmo Trutta Fario)        16.0      2.4       0.7       0.3

  Mediterranien Barbel (Barbus            9.9       5.3       1.0       1.1
  Meridionalis)                                                         

  Tench (Tinca Tinca)                     3.1       4.2       0.7       1.8

  Brook Trout (Salvelinus Fontinalis)     5.6       0.2       1.5       1.9

  Asp (Aspius Aspius)                     1.3       3.0       2.8       1.9

  Black Carp (Mylopharyngodon Piceus)     2.0       3.6       0.9       2.1

  Barbel (Barbus Barbus)                  4.3       1.2       2.6       0.1

  Vimba (Vimba Vimba)                     2.0       1.6       2.7       0.0

  Danube Bleak (Chalcalburnus Chalcoides) 1.5       2.6       1.2       0.8

  Ide (Leuciscus Idus)                    0.2       0.7       0.2       0.0

  Totals                                  1,457.4   1,794.2   2,024.5   1,664.0
  --------------------------------------- --------- --------- --------- ---------

**Appendix 3: Danube River Fish Production Numbers (metric tons)**

  ------------------------------------------ -------- -------- -------- --------
  **2002-2005 Danube River Fish Production                              
  (metric tons)**                                                       

  **Fish Species**                           *2002*   *2003*   *2004*   *2005*

  Barbel (Barbus Barbus)                     100.0    51.8     44.3     34.4

  Carp Bream (Abramis Brama)                 24.7     59.8     53.2     30.1

  Wels Catfish (Silurus Glanis)              22.0     45.5     39.4     27.2

  Common Carp (Cyprinus Carpio)              17.7     32.7     31.5     19.5

  Silver Carp (Hypophthalmichthys molitrix)  19.8     28.8     21.5     21.8

  Pike Perch (Lucioperca Lucioperca)         17.2     33.4     26.1     14.1

  Danube Herring (Caspialosa Pontica)        34.5     11.4     22.0     16.0

  Bleak (Alburnus Alburnus)                  14.8     29.9     20.9     17.6

  Vimba (Vimba Vimba)                        12.5     23.8     20.6     19.4

  Carp (Carassius Sp)                        39.6     15.7     3.5      9.1

  Sneep (Chondrostoma Nasus)                 15.5     19.5     9.9      17.7

  Asp (Aspius Aspius)                        14.1     14.7     15.2     16.7

  Bighead Carp (Aristichthys nobilis)        13.0     9.1      15.7     20.8

  Others                                     15.2     10.5     15.8     16.5

  Grass-Carp (Ctenopharyngodon Idella)       9.0      19.2     12.7     15.2

  Great Sturgeon (Huso Huso)                 9.9      8.2      9.9      13.2

  Roach (Rutilus Rutilus)                    2.0      13.4     7.9      6.9

  Rudd (Scardinus Erythrophthalmus)          4.0      9.7      8.6      7.3

  Ide (Leuciscus Idus)                       1.2      13.6     4.5      7.2

  Northern Pike (Esox Lucius)                5.0      3.9      2.9      10.5

  Danube Bleak (Chalcalburnus Chalcoides)    0.7      9.1      5.5      4.7

  Sterlet (Acienser Ruthenus)                2.8      4.5      3.4      4.8

  European Perch (Perca Fluviatilis)         1.9      5.8      3.9      1.7

  European Chub (Leuciscus Cephalus)         5.0      5.1      0.3      1.6

  Burbot (Lota Lota)                         5.0      3.0      1.2      0.7

  Bream (Abramis Sp.)                        1.0      1.7      1.2      3.0

  Sturgeon (Acipenser Stellatus)             1.7      1.3      0.5      0.7

  Goby (Gobidae)                             1.3      1.5      1.0      0.0

  Ziege (Pelecus Cultratus)                  0.5      0.8      0.6      1.4

  Russian Sturgeon (Acipenser                1.2      1.0      0.5      0.3
  Gueldenstaedti)                                                       

  Brook Trout (Salvelinus Foutinalis)        0.8      0.0      0.0      0.0

  Totals                                     413.6    488.4    404.2    360.1
  ------------------------------------------ -------- -------- -------- --------

**Appendix 4: Bulgarian Exports (metric tons)**

  ------------------------ ----------- ----------- ----------- -----------
  **2003-2006 Destination                                      
  of Bulgarian Exports by                                      
  Country (metric tons)**                                      

  **Country**              *2003*      *2004*      *2005*      *2006*

  Romania                  1,814.2     2,011.4     913.9       677.6

  Japan                    607.4       1,024.6     744.6       545.2

  Turkey                   462.0       722.8       422.0       327.1

  Germany                  356.7       374.8       521.1       535.7

  Greece                   486.8       323.8       343.4       458.6

  Serbia                   917.6       310.4       166.9       7.7

  Macedonia                322.2       150.0       232.9       614.5

  South Korea              145.0       113.5       59.0        610.2

  France                   128.3       78.6        102.1       184.5

  America                  0.7         0.2         180.4       111.2

  Bosnia                   158.8       39.7        37.6        0.0

  Great Britain            0.4         0.4         0.2         113.5

  Czech Republic           36.0        0.0         42.0        27.9

  Sweden                   0.0         0.0         0.0         79.4

  Norway                   0.0         72.8        0.1         0.1

  China                    0.3         10.4        10.5        23.5

  Italy                    20.6        0.4         0.3         16.4

  Spain                    34.9        0.0         0.0         0.0

  Netherlands              0.2         16.4        1.0         11.0

  Cambodia                 25.4        0.1         0.0         0.3

  Total                    5,548.6     5,277.5     3,851.8     4,413.3
  ------------------------ ----------- ----------- ----------- -----------

**Appendix 5: Bulgarian Exports (USD)**

  ------------------ ------------ ------------ ------------ --------------
  **2003-2006 Value                                         
  of Bulgarian                                              
  Exports by Country                                        
  (USD)**                                                   

  **Country**        *2003*       *2004*       *2005*       *2006*

  Japan              1,894,217    3,849,323    3,291,304    2,671,935

  Germany            1,170,378    1,128,754    1,781,810    2,535,969

  South Korea        520,586      497,335      296,519      3,029,956

  Romania            1,677,991    952,506      728,105      834,907

  France             521,614      375,758      1,189,324    1,655,838

  Turkey             417,173      709,463      298,893      230,297

  America            227,279      88,351       889,032      446,265

  Greece             385,320      274,528      283,684      464,197

  Macedonia          331,888      239,629      119,022      627,871

  Serbia             622,890      189,533      98,207       22,618

  Czech Republic     101,821      0            58,136       197,889

  Norway             215          279,634      352          3,191

  China              2,666        39,375       32,058       100,172

  Great Britain      1,895        2,064        1,139        167,368

  Sweden             0            0            0            164,460

  Netherlands        1,062        135,844      4,540        13,616

  Italy              74,432       2,363        1,795        55,913

  Bosnia             96,142       15,750       14,877       0

  Lichtenstein       0            0            123,933      0

  Spain              87,238       0            132          369

  Total              8,241,321    8,944,339    9,437,082    13,474,348
  ------------------ ------------ ------------ ------------ --------------

**Appendix 6: Bulgarian Fish Importers**

# Fish Producers, Processors and Importers Association BG FISH

Mr. Valeri Baronov, Ch

e-mail: reyafish@abv.bg

Reya Fish Ltd

Cell (359)(899) 881 818

Tel. 359 2 978 4060

Tel/fax 359 2 978 4660

Tel/fax (359)(2) 958 5649

e-mail: bgfish@Bulgaria.com

web: www.bgfish.com

# Atlantic

Mr. Ivailo Russinov

3 "Industrial Zone"

Bourgas

Tel. (359)(56) 871 601; 871 602; 871 603 - direct

Fax (359)(56) 840 692

Cell (359)(888) 923 028

e-mail: <atlantic@atlantic-group.org>; <shipping@atlantic-group.org>

# Electa Co. Ltd

Mrs. Luybov Georgieva

15A "Bratya Georgievich"

9000 Varna

tel./fax (359)(52) 69 11 55

cell (359) 898 645 500

e-mail: [electa@mail.bg](mailto:electa@triada.bg)

# Danel 97 Ltd

Mr. Plamen Danchev, Manager

Slatina Commodity Exchange

Tel. (359)(2) 978 8505

Mobile (359) 889 715 112

Fax (359)(2) 973 4194

e-mail: <plamendanchev@abv.bg>

Mrs. Neli Kunderova, Trade Director

Mobile (359) 887 905 909

e-mail: <danel97@yahoo.com>

# Vi-Venda

Mr.Hristo Djundjurov

Tel. (359)(2) 931 2157

Fax (359)(2) 931 1740

Mobile (359) 888 444314

e-mail: <vivenda@mail.bg>

# Delta Industry

Mr. Mindo Kanchev Stoyanov, Executive Director

22 "Kapitan Petko Voivoda" Str

Sozopol

Tel. 359 550 22420

Tel/fax 359 550 22459

Cell 359 888 206 469

e-mail: <deltaind@atlantic-group.org>

# NESI-5 Ltd

Mr. Krum Drumev, Managing director

2 "Georgi Tringov" Str

Plovdiv 4003

Tel. 359 32 968 100

Fax 359 32 968 104

e-mail: <manager@nesi-5.com>

# Silvex Commerce Ltd

Mrs. Silvia Vladimirova

5 A "Shishman" Str

1000 Sofia

tel. (359)(2) 980 9519; 989 0917

fax (359)(2) 981 5966

mobile: (359) 888 517 991

e-mail: <silvex@dir.bg>

# Diavena Ltd

Mrs. Daniela Jelezcheva, President

Mr. Plamen Gerchev, Trade Manager

Industrial Zone

9700 Shumen

tel. (359) (54) 832 594

tel/ fax (359) (54) 628 71

cell 359 899 943 079

e-mail: <plamengerchev@hotmail.com>

e-mail: <diavena@diavena.com>; web:
[www.diavena.com](http://www.diavena.com/)

web: http://www.diavena.com

# Kamarko Ltd

Mr. George Kostadinov

17A "Tintyava" Str

Sofia

Tel. (359)(2) 969 2011

Fax (359)(2) 962 5849

Cell (359) 888 438 368

e-mail: <georgek@kamarko.com>

# Ecomar Ltd.

Mr. Ivaylo Tomov, Manager

Cell 0888 920 428

Sofia 1000,

20-22 William Gladstone St, 6^th^ floor, ap.18

tel: 359 2 981 36 72

fax; 359 2 981 4538

GSM 359 888 920 428

e-mail: <ecomar@fastbg.net>

# Poseidon Frozen Foods Ltd.

Mr. Dimitar Ganev, Manager

Sofia 1574

13, Tzvetan Lazarov St.

Storehouse 202

Tel: 359 2 978 63 66

Fax: 359 2 973 41 84

Mobile: 359 885 551 999

e-mail: <poseidonfoods@hotmail.com>

e-mail: poseidbs@burgas.prolink.bg

# Seafood Ltd

Mr. Venelin Dimitrov, President

51 "Patrirach Eftimii" Str.

Bourgas

Tel. 056 842 395

e-mail <seafood@dynasty-bg.com>