Signals from the dairy sector indicate a persistent gap between farmgate prices and actual production costs. According to information publicly reported by political representatives, some Romanian farmers sell milk at around €0.30 per liter, while costs frequently exceed €0.50 per liter. This difference generates direct losses and puts pressure on the continuity of operations, especially in small and medium-sized farms.

Data from the European Commission (DG AGRI) shows that the average price of raw milk in Romania is below the European Union average. In January 2026, the level was approximately €42.5/100 kg, compared to the EU average of €45.2/100 kg. However, this average does not reflect the real distribution of income within the sector, where small farms, lacking stable contracts and bargaining power, may obtain significantly lower prices.

From a productivity perspective, Romania remains in a vulnerable position. According to Eurostat, the average annual production per cow in the EU exceeds 8,000 kg, while in Romania it is around 3,500 kg. This difference translates directly into higher unit costs and a reduced capacity to absorb market fluctuations. At the same time, data from the National Institute of Statistics (INS) indicates a slight increase in cattle numbers in 2025, suggesting that the sector is not yet in statistical contraction, but this evolution does not reflect the economic sustainability of farms.

At the European level, stabilization mechanisms aim to increase transparency in the agri-food chain and correct the distribution of value. Initiatives such as the Agri-Food Chain Observatory seek to monitor costs and margins across each link. For Romania, the issue is not only the level of production, but also the structure of the market: farm fragmentation, dependence on intermediaries, and limited integration into associative forms reduce farmers’ ability to negotiate fair prices.

In the short term, the gap between cost and price risks leading to irreversible economic decisions, including herd reduction or exit from activity. In the medium term, maintaining domestic milk production depends on rapid interventions tailored to the sector’s structure and on strengthening farmers’ position within the value chain.

(Photo: Freepik)