Vertical integration is becoming the dominant model in the European pig sector. In Romania, only 15% of farms are fully integrated, but they account for over 50% of national production, according to MADR 2024. The model involves controlling the entire chain – from feed production and genetics to processing and distribution – which reduces costs and increases profitability.

By comparison, in Denmark and Spain, over 70% of the pig sector is integrated, which explains the high productivity and competitiveness. Integrated farms achieve profit margins 20–25% higher than traditional farms. In Romania, farms that have implemented this model manage to market pork at prices of 18–20 lei/kg, compared to 14–15 lei/kg for farms that sell only live animals.

The challenges for adopting vertical integration are the high investment costs and limited access to financing for small and medium-sized farms. However, the CAP Strategic Plan and AFIR 2023–2027 include dedicated support lines for the construction of small slaughterhouses and local processing units.

Specialists estimate that by 2030, the share of integrated farms could reach 30–35%, which would reduce dependence on imports and strengthen the Romanian pig sector. Vertical integration is not just a trend, but a necessary model for the competitive future of pig farming.

(Photo: Freepik)