The structure of the dairy sector in Romania highlights a significant economic gap between small-scale farms and commercial operations. Average milk production per cow typically ranges between 3,000–4,000 liters/year in small farms and over 7,000–9,000 liters/year in modernized operations. This difference directly impacts the production cost per liter, which can exceed €0.45/liter in small farms, compared to €0.30–0.38/liter in efficient farms.

Fixed costs are a determining factor. In small-scale operations, the lack of automation and limited use of equipment lead to higher labor costs and lower efficiency. In large farms, investments in technology allow costs to be distributed over larger volumes, reducing the unit cost by 20–30%.

Revenues are influenced by the position within the value chain. Commercial farms deliver consistent volumes and can obtain prices of approximately €0.40–0.50/liter, while small farms may receive lower prices or incur additional costs. A difference of just a few euro cents becomes significant on an annual scale.

Profitability is determined by economic organization. Small farms can compensate through processing or direct sales, where prices can exceed €0.70–1/liter equivalent. In the absence of such models, differences in productivity and cost remain the main factors separating economic performance.

(Photo: Freepik)