ASSESSMENT OF PROFITABILITY OF DAIRY SECTOR IN ALBANIA

In the process of approximation to the European Union (EU), Albania seeks potential to increase competiveness andfood standards to improve import / export relation with agriculture and food products. Among the traditionallyproduced agricultural goods livestock rearing and particularly milk production activities have a long tradition inAlbania due to the favourable natural resources for large and small ruminants. Due to the significance of livestock andmilk production, particularly in rural areas, MoAF has selected the milk sector as a policy priority. The Albaniangovernment and MoAF are inclined to support primary production and the dairy industry. Evaluation of performance atfarm level is not possible because are missing the data. Official data (statistical yearbook of MAFCP) don’t includeinformation at farm level for each product. Farm-level dairy production in Albania is characterized by small-scale,peasant farming system based on extensive cattle grazing with little additional input. Given the current structure of thesector, milk production and processing is a domestically profitable activity, so that potential export opportunities couldbe sough.