HOW TO OVERCOME THE PROBLEM OF MILK SCARCITY AND LOW PROFITS FOR DAIRY FARMERS AND PROCESSORS?

Results and conclusions of a dairy supply chain and value drain analysis in Albania

1. • Summary of Findings

     1. Milk Scarcity Issues:
        • There is a significant shortage of domestically produced milk in Albania, primarily due to low farm productivity and inadequate technology.
        • Dairy processing companies rely on imported raw materials, often of lower quality and more expensive.
     2. Weaknesses at the Farm Level:
        • Feed Management: Farmers use unbalanced feed rations that do not optimize available fodder resources.
        • Record Keeping: Lack of documentation regarding productivity and lactation cycles hinders herd management and increases veterinary costs.
        • Animal Welfare: Poor stable conditions adversely affect fertility and milk yield, and issues related to housing, feeding, and hygiene also exist.
        • Reproduction Challenges: Cows are not inseminated optimally, leading to longer calving intervals and reduced genetic potential.
        • Health Issues: Common problems such as mastitis and claw health issues significantly impact milk yield and fertility.
     3. Processor Level Challenges:
        • The farmer-processor interface needs more effective incentives for quality milk production, as payment systems are based primarily on quantity and fat content.
        • Processing companies face competitiveness challenges due to the scarcity of raw milk, high import costs, and rising energy expenses.
        • Many processors are improving product quality but rely heavily on imported raw milk to meet demand.

     

2. • Recommendations for Improvement:

     • Capacity Building: Training programs for farmers and veterinarians are crucial to enhancing knowledge in feed management, record-keeping, and animal health.
     • Investment in Infrastructure: The impact of investments in cow stables that adhere to animal welfare standards and the purchase of modern farm machinery on farm productivity is significant, making this a crucial area for improvement.Quality-Based Payment Systems: Implementing a payment system that rewards quality metrics like TPC and SCC will incentivize better practices among farmers.
     • Promoting Grazing and Crop Rotation: Encouraging grazing practices and effective crop rotation will improve feed quality and reduce dependence on imported feed.
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3. Market Dynamics:

   • The Albanian dairy market has limited margins for retailers, and the milk processing companies face challenges with profitability due to the scarcity of quality raw milk.
   • The report emphasizes that investments in technology and improved farming practices are essential for enhancing productivity and profitability in the dairy sector.

Conclusion

The dairy supply chain in Albania is currently facing multiple challenges, primarily rooted in farm-level productivity issues. Strengthening the sector requires comprehensive strategies focused on improving farm management practices, investing in infrastructure, and implementing better payment systems to foster a sustainable and profitable dairy industry.

The full study is in the pdf version:

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