Romania’s Dairy Industry Under Energy Cost Pressure: Adapt or Stagnate?

Over the past two years, Romania’s dairy industry has been facing one of its most significant challenges in decades: soaring energy costs. As a sector heavily dependent on energy-intensive processes – from raw milk cooling, pasteurization, and homogenization, to packaging and cold storage – any fluctuation in energy prices has a direct impact on processor profit margins.

📉 Rising Costs

According to industry estimates, in 2025:

• The average price of electricity and thermal energy for industrial use is 18–22% higher compared to 2023.
• Logistics costs (transport and refrigeration) have risen by over 15%, driven by higher fuel prices and tighter requirements in the cold chain.
• The average shelf price of UHT milk has increased by around 7%, while premium dairy products (organic, lactose-free, locally sourced) have seen price hikes of 10–12%.

⚙️ Industry Response

Romanian dairy processors are beginning to adapt, but the necessary measures require strategic investments:

• Modernizing equipment for improved energy efficiency – including smart boilers, high-efficiency heat pumps, and next-gen chillers.
• Recovering residual heat from thermal processes to preheat water or air.
• Installing photovoltaic panels on production facilities, which can cover 10–25% of internal energy consumption.
• Optimizing transport routes and partnering with local farmers to reduce the distance for raw milk sourcing.

🔄 The Path Forward: Efficiency and Sustainability

In the medium and long term, only those who invest in energy and logistics efficiency will remain competitive in a volatile market with increasingly demanding consumers. At the same time, market stabilization and new EU funding for green transition projects will play a crucial role.

What’s at stake is not just profitability, but the survival of a sector that currently supplies over 90% of Romania’s domestic dairy demand and holds significant export potential in the region.

(Photo: Freepik)