The economics of a dairy farm are primarily determined by the ratio between feed costs and the selling price of milk. In most farms in Romania, feed accounts for between 50% and 65% of total production costs.

Market analyses indicate that, during the 2024–2025 period, the cost of milk production in commercial farms typically ranges between €0.35 and €0.45 per liter, depending on herd productivity and feeding efficiency.

At a delivery price of approximately €0.40–€0.50 per liter, the farmer’s margin remains relatively low and highly sensitive to cost fluctuations. An increase in feed prices or a decline in production per animal can quickly reduce profitability.

Productivity thus becomes the critical factor. The difference between a farm producing 6,000 liters per head per year and one exceeding 9,000 liters per head per year significantly changes the economic structure, as fixed costs are distributed over a larger production volume.

Feed management, herd genetics, and control of operational costs are the key elements that determine the profitability of a dairy farm.

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