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Revitalizing the Albanian dairy sector in the context of food, energy and financial crises
This report provides an in-depth analysis of Albania’s dairy sector, a critical component of the country’s agricultural economy. Despite recent improvements in farm productivity, the sector faces significant challenges including fragmented landownership, declining cattle numbers, and mounting production costs. The impact of external crises such as the COVID-19 pandemic and disruptions in global food and energy systems has further stressed the industry, leading to reduced domestic milk output and increased reliance on imports. The study explores these issues through both qualitative and quantitative research, focusing on the dairy farm segment and examining the roles of farmers, processors, wholesalers, and retailers. While large farms are showing profitability gains, smaller farms are increasingly exiting the sector or shifting to alternative livestock. Demographic changes ？ such as emigration and an ageing farming population ？ exacerbate labour shortages, while policy support remains insufficient compared to regional peers. To address these concerns, the report proposes strategic interventions including empowering value chain leaders, encouraging farmer cooperatives, and implementing a holistic policy framework that promotes sustainability, supports young and potential farmers, and fosters innovation. Overall, the dairy sector in Albania stands at a pivotal moment, requiring coordinated efforts to build resilience, ensure competitiveness, and secure its long-term viability within the national economy.
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