In 2017, the Bulgarian dairy industry began to stabilize following an outbreak of lumpy-skin disease (LSD) in 2016. Favorable milk prices encouraged investments in on-farm inputs. According to official data, milk deliveries grew by 16 percent during the first five months of 2018. Post expects Bulgaria’s dairy herd, milk deliveries, and milk yields will all increase in 2018 and 2019. Consolidation and commercialization will continue to reduce the number of subsistence dairy farms. Although the animaldisease situation was more favorable in 2017, in late June and early July 2018, the European Union’s (EU) first-ever outbreak of peste des petits ruminants (PPR) was detected in Bulgaria. Bulgaria’s unpredictable epizootic situation remains the biggest threat to its dairy sector.