Milk imports have continued to climb throughout 2024, with new data showing that 22.8 million litres were brought into the country. This marks a 23% increase compared to 2023.
Experts say that imports will likely keep rising through 2025. Local processors are planning to buy milk from abroad during the summer months, as domestic supply can’t meet demand.
“We’re not buying imported milk right now because we have more than enough. But come summer, we’ll definitely need to buy from abroad since local farms won’t be able to fill the gap,” said Luis Ndreka from ADG, a dairy processing company.
The problem for the dairy industry, however, lies in the high cost of milk production. Local farmers are struggling with rising prices for raw materials, making milk more expensive.
“At large farms, the price of milk is 66 lek per litre (before VAT),” said Ndreka. “For smaller farms, the price can go up to 60 lek per litre due to higher collection costs.”
Despite repeated price cuts throughout 2024, which even led to protests from farmers in April, locally-produced milk remains more expensive than imports from the region or Europe.
Earlier in 2024, large and medium-sized farms sold their milk for 65 to 67 lek per litre (before VAT), down from 78 lek per litre (a drop of 16-20%). Smaller farms were selling for around 60 lek per litre. Imported milk, including transport and taxes, cost 55 lek per litre — about 38 lek cheaper than local milk.
Experts blame the lack of government subsidies for local milk production as the main reason for this price difference. Without subsidies, farmers cannot compete with cheaper imports from abroad.
Things are only getting worse for local farmers. Starting in January 2025, the cost of feed has gone up by up to 60%, adding pressure to an already strained industry. Corn prices have increased by 26%, from 27 lek per kilogram to 34 lek. Meanwhile, prices for hay have gone up by 24%, and the cost of barley has shot up by 32%.
For now, milk processors are not planning to raise their prices, since demand is lower than the supply of milk. But agronomists warn that the increased cost of animal feed will likely lead to a reduction in the number of livestock on farms.
