Romanian dairy farms: the future is now
With a performance below EU average, fragmented production structure – with many small farms on one side, and fewer large scale farms on the other – Romania’s dairy sector can nevertheless look with optimism to its future, due to the country’s large feed base, lower pressure on environment and a strong demand currently unmet by local production. However, investments are necessary. And they are necessary now.
Below EU-average performance: the role of genetics
The productivity of dairy farms in Romania is 35% lower than the European average, according to Eurostat 2024. One of the causes is the insufficient use of high-performance genetic material. On many farms, yields remain at 4,500 litres/head/year, while in west-European they exceed 8,000 litres.
The costs of improving genetics are outpaced by the benefits of such investment. The benefits are reflected in increased production and reduced health problems. Farms that have invested in modern genetics have reported a 20% increase in milk production and a 15% reduction in veterinary costs.
In Romania, only 18% of dairy farms seem to have accessed genetic improvement programmes, according to ANZ (national agency for livestock improvement). Mainly lack of information and sometimes capital are the predominant barriers. However, the NSP (National Strategic Programme for 2023–2027) includes support for genetic improvement, which may accelerate modernisation.
Experts estimate that, through a national improvement programme, Romania could reduce the gap with the European average by 10–15% by 2030. Investing in genetics is not just an option, but a condition for survival in the milk market.
Sustainability: the pressure of the European Green Deal
Dairy farms in Romania are facing a new strategic challenge: adapting to the objectives of the European Green Deal and the "Farm to Fork" strategy. According to European Commission data, the livestock sector contributes approximately 11% to the EU's total greenhouse gas emissions, and dairy farms are directly impacted by the new regulations on methane reduction and sustainable use of resources.
In Romania, although the average yield is below EU average, emissions per unit of product can be higher, precisely because of low efficiency.
The implementation of sustainable technologies - biogas digesters, digital manure management, methane-reducing feed additives - is still in its infancy in Romania. According to experts, costs are a limiting factor when it comes to smaller farms. But such investments can also be a good reason for association, a process which is slow and challenging at the moment.
Experts also estimate that by 2030, Romanian farms that adopt green technologies can gain not only a competitive advantage in the market, but also additional income from carbon certificates.
Adapting to the Green Deal is not only an obligation, but it can be seen as an opportunity for the structural transformation of the Romanian dairy sector.