Technologies

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The dairy industry on medium-sized farms: how financing influences production

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Medium-sized dairy farms play a crucial role in Romania’s milk industry, accounting for approximately 45% of total production, according to 2024 INS data. These operations, with herds ranging from 50 to 200 head, are, however, highly sensitive to access to financing.

Over the past two years, production costs have risen by more than 20%, mainly due to feed, energy, and veterinary services. Without investment, the average yield per cow remains stagnant at around 4,000–4,500 liters annually—significantly below the European average of 6,500 liters.

Funding programs under the 2023–2027 PNS and AFIR provide opportunities for modernizing barns, installing automated milking systems, and acquiring milk cooling equipment. However, the uptake rate remains low: only 15% of medium-sized farms submitted eligible projects in 2024, according to the Ministry of Agriculture and Rural Development (MADR). The main barriers are bureaucracy and the lack of specialized consultancy.

Sector studies show that farms that have received funding have managed to increase production by 20–25% and reduce technological losses by up to 15%. In addition, compliance with EU quality standards has become easier with the digitalization of monitoring processes.

The dairy industry needs public policies that stimulate investment in medium-sized farms, as they are essential for ensuring a balance between industrial and local production, as well as for maintaining competitiveness in the European market.

(Photo: Pixabay)

 

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