Romania’s Dairy Sector: Real Challenges and Pathways to Performance

1. Current Situation: Declining Production, Rising Imports

Between 2014 and 2023, Romania’s cow’s milk production dropped by around 12%, driven by a decline in the number of farms and herd sizes, as well as intensifying competition from imports.

In 2024:

• The quantity of milk collected domestically by processing units increased by 4.6% compared to 2023, reaching 1.26 million tonnes.
• Raw milk imports surged by 38.7%, totalling 159,800 tonnes.
• Romania accounts for just 0.8% of total EU milk production, with an average yield of 3,425–5,500 kg per cow/year — far below the EU average of 7,791 kg/year.

2. Modernisation and Digitalisation – A Gap with Western Europe

Only 15–18% of commercial farms in Romania use automated milking systems, and fewer than 10% have microclimate monitoring technologies.

By contrast, countries such as Germany, the Netherlands, and Denmark have widely adopted:

• Digital herd management systems
• Automated ventilation
• Precision feeding and nutrition control

3. Global Trend: Automation and AI in Dairy Farms

Worldwide, 2025 is seeing accelerated adoption of:

• Robotic milking systems
• Artificial intelligence for quality control
• Sensors for contamination detection
• Predictive maintenance systems

These technologies can cut labour costs by up to 60%, with investment payback achieved in 5–7 years.

4. Domestic Demand and Export Prospects

Consumption of dairy products in Romania has grown by an average of 5.8% per year since 2019, while dairy production has increased by 5.9%.

However, the trade balance remains negative: Romania has consistently imported more milk and dairy products than it exports, a deficit persisting since 2011–2022.

5. Challenges and Strategic Directions

Key challenges include:

• Low productivity per cow
• Fragmented farm structure dominated by small-scale producers
• Limited access to modern technology and skilled workforce

6. Concrete Solutions for 2025–2030

• Technological Modernisation – Robotic milking, digital herd management, IoT sensors for microclimate and nutrition.
• High-Performance Breeding Programmes – Importing semen from high-yield EU breeds, selective breeding for productivity and health.
• Better Access to EU Funding – Leveraging PNDR 2023–2027 and DR 20/DR 22 measures for digitalisation, animal welfare, and emission reduction.
• Capitalising on Local Markets – Developing artisanal, organic, traceable products for export to the EU and Middle East.
• Farm Consolidation – Encouraging cooperative clusters, increasing farm sizes, and professionalising management.

7. Conclusion

Romania’s dairy sector holds significant potential but remains hindered by small, semi-intensive farm structures. Achieving competitiveness and self-sufficiency requires:

• Investment in modern technology and digitalisation
• Higher productivity per cow
• Reduced reliance on imports through expanded domestic capacity
• Targeted export growth with value-added products

(Photo: Freepik)