Milk producers in the Republic of Moldova are facing a long-lasting crisis, their production decreasing by 38% the past ten years. A study conducted by the Investment Agency shows the milk production the past several years declined considerably, from 485,000 tonnes in 2017 to 367,000 tonnes in 2019, while imports rose by 22% a year to US$58 million in 2019, IPN reports.

The animal-breeding sector follows the same negative trend, confirming the crisis of the dairy farming. The number of cows decreased from 154,000 in 2011 to 81,000 in 2020, with only 6% of the milk used in processing coming from agricultural enterprises.

The Investment Agency designed an investment plan that estimates the investments needed for creating a standard farm of 400 cows. The investment plan can be implemented at a cost of 12.979 billion lei.

“The study not only confirms the development potential of the unexplored sector, but also provides practical solutions for reinvigorating and stimulating businesses in the field. The Investment Agency reaffirms its intention to support the implementation of the next research pillars financially and technically,” said the Agency’s director general Rodica Verbeniuc, being quoted in a press release.

According to statistics, 94% of the national milk is produced in the population’s farms and only 6% of the milk used in processing comes from agricultural enterprises. Only 5% of the available cattle belong to agricultural enterprises. This means Moldova de facto does not have a well-shaped animal-breeding sector. The processors, for their part, are obliged to collect milk from individual farms, with a low quality and productivity, excessive logistics costs in collection that generate a shortage of national milk as raw material and higher milk imports that rise to 162,000 tonnes and cover 33% of the needs of processors.

The study shows Moldova in 2019 exported dairy products to the value of US$5.8 million. The exports the past five years declined by 17% on average a year.