Small Dairy Farms in Romania: Challenges and Opportunities in Processing and Direct Sales

Small dairy farms, with herds of fewer than 50 head, supply around 25% of Romania’s raw milk production, according to INS 2024 data. They play a vital role in the rural economy but face significant challenges in processing and direct-to-consumer sales.

High costs for processing equipment and compliance with food safety standards limit the ability of small farms to enter the finished products market. According to a study conducted by an agricultural university, the minimum investment for an artisanal processing unit that meets EU regulations is approximately €80,000–120,000.

However, funding programs under the National Strategic Plan (PNS) and Local Action Groups (GALs) can cover up to 70% of these costs. Success stories show that farms investing in their own processing facilities have achieved profit margins 25–30% higher than those selling only raw milk.

Moreover, the growing demand for artisanal cheeses and local products through short supply chains offers a significant opportunity. With proper marketing and distribution support, small farms can become relevant players in the dairy industry, contributing to product diversity and the preservation of local traditions.

(Photo: Freepik)