Milk market in Albania

Earlier Report Observations

Between 2018 and 2023, Albania's milk market contracted significantly, driven by deep-rooted structural inefficiencies. From the start of the period, a fragmented farm structure with low productivity and a very low rate of milk collection for processing meant domestic production was underutilized. Processing plants relied heavily on milk powder and palm oil to meet demand, further undermining product quality and consumer trust. The lack of reforms in quality control and traceability hindered the sector's competitiveness and its ability to export.

The decline accelerated due to a persistent fall in cattle numbers, which directly reduced raw milk output. Concurrently, rising costs for energy, gas, and agricultural inputs from 2021 onward squeezed production margins. Fiscal pressure from a revised VAT scheme in 2019 reduced processors' profits, while growing imports of pasteurized milk from Balkan countries increased competition, displacing local production. These factors combined to create a challenging environment for domestic farmers and processors.

Although imports of milk and dairy products rose to compensate for the shortfall in domestic supply, the overall market volume continued to shrink. The increase in imports was facilitated by simplified customs procedures in later years. However, market dynamics were further complicated by an antitrust investigation into major processors over suspected price coordination and social media campaigns discouraging consumers from buying fresh milk directly from farmers, adding pressure on the formal market structure.

Production milk in Albania

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Albania's milk production declined for the third consecutive year. In 2020, the country produced 1 084 K t of milk, which is 5.4% less than in 2019. Over the period from 2017 to 2020, production decreased by 9%, with a compound annual growth rate (CAGR) of -3.1%.

Annual dynamics of production in Albania in kind, 2017-2020, K t

Exports milk from Albania

Market analysis shows that Albania did not export any milk from 2017 to 2020.

Imports milk to Albania

Imports in kind, t

After two years of growth, Albania's milk import volume declined. In 2020, the country imported {value_last_year} t of milk, down by 32.8% compared to 2019. Between 2017 and 2020, imports decreased by 12.3%, equating to an annualized rate of -4.3%. The largest increase was recorded in 2018 at 14.7%, while the peak import volume occurred in 2019, reaching 10 862 t.

Annual dynamics of product's imports to Albania in kind, 2017-2020, t

From 2017 to 2020, Italy, Serbia, and Bosnia and Herzegovina remained the main suppliers of milk to Albania. Italy accounted for 57.1% of imports in kind, Serbia for 13.4%, and Bosnia and Herzegovina for 12.9%, together forming 83.3% of total imports in kind.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Albania in kind, 2017-2020

Imports in value, K $ US

After two years of increase, Albania's foreign milk supplies declined. In 2020, the country imported {value_last_year} K $ US of milk, down by 15.6% compared to 2019. Over the period from 2017 to 2020, imports increased by 2.1%, with a compound annual growth rate (CAGR) of 0.7%. The largest increase was recorded in 2018 at 19.8%, while the peak value occurred in 2019, reaching 7 836 K $ US.

Annual dynamics of product's imports to Albania in value, 2017-2020, K $ US

From 2017 to 2020, Italy, Serbia, and Bosnia and Herzegovina were the principal sources for Albania's milk imports in value terms. Italy accounted for 63.7% of imports, Serbia for 9.6%, and Bosnia and Herzegovina for 8.9%, jointly making up 82.2% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Albania in value, 2017-2020