Besart Kaba is among the many livestock farmers in the south who recently protested on the streets of Albania. Earlier this year, dairies and processing factories decided to slash the price of sheep and goat milk by 30%. 
"With these absurdly low prices in Albania, it feels like we're working for the sheep rather than them working for us," Besart remarks. 
Rarely do protests by livestock farmers yield results. However, from 120 Lek per liter, dairies and factories are now purchasing goat and sheep milk at 160 Lek per liter. 
"We stopped protesting because all dairies settled on the price of 160 ALL. Unlike European farmers, we lack unity; dairies dictate the prices and we have no choice but to comply," laments the livestock farmer from Lazarat, Gjirokastra. 
Besart owns approximately 400 heads of sheep and goats. He inherited his livestock farming business from his father, but despite years in the sector, he views the future with uncertainty. 
"Not a day goes by without contemplating selling the animals. If milk prices don't reach 200 ALL per liter, the expenses become unsustainable for livestock farmers. I'm constantly torn because it's frustrating to deal with these meager prices. Selling them and leaving seems like the only option," he concludes. 

Livestock in crisis 
Statistically, Albanian livestock is facing a crisis, with a significant decrease in the number of heads over the past decade. According to data from INSTAT, in 2013, there were 356 thousand cows in the country. By the end of 2022, their number had decreased by 95 thousand. 
There has also been a notable decline in the number of small animals. From 2.7 million sheep/goats at the end of 2013, a decade later, there were 700,000 fewer. As a result of the decline in livestock, milk production has also decreased. From 2013 to the end of 2022, milk production in Albania decreased by 161 thousand tons. 
Experts attribute the downward trend in livestock farming to the lack of support and incorrect fiscal policies towards the sector. 
"Livestock farming is facing serious difficulties. The main reason for the decline in the number of heads is incorrect fiscal policies. Another factor is the discriminatory nature of subsidies. The decline in livestock began in 2018, as indicated by INSTAT figures. The situation worsened due to the tripling of agricultural inputs and the increase in food product prices," says Eduard Sharka, Chairman of the Farmers' Association. 
In 2019, the Albanian government decided to reduce the VAT refund for locally produced milk from 20 percent to 6 percent. This decision, according to economics journalist Klodian Tomorri, dealt the first blow to domestic milk production. The second blow came three years later when the government completely eliminated the VAT refund for domestic milk, reducing it from 6 percent to zero. 
"If a processing plant buys milk from local farmers at 100 ALL per liter, the actual cost is 120 ALL because of the 20 ALL state VAT. However, when purchasing imported milk for 100 lek, the real cost remains around 100 lek because the VAT paid at customs is credited. Consequently, it is more profitable for milk processing factories to import milk than to buy it from local farmers,” explains Tomorri. 
Under these conditions, the Association of Milk Processors in Albania foresees a challenging year for livestock. 
"If livestock does not receive adequate funding as in other regions and subsidy schemes are not focused on production, then even in 2024, the number of heads will decrease, leading to a further reduction in milk production," says the Association. 
Processors advocate for changes in fiscal policies, asserting that pressure from imports is increasing to the detriment of domestic production. 

The market is inundated by imports 
As livestock numbers have dwindled over the years, the domestic market in Albania is increasingly being inundated by imports. Last year alone, Albania imported 31,000 tons of dairy products from abroad. Year after year, domestic production is being supplanted by foreign alternatives. This trend, according to Professor Ndoc Fasllia, should serve as a wake-up call for any government. 
"In a country like Albania, where the resident population has decreased, leading to a reduction in the number of consumers, the continuous increase in food imports is alarming...!!! Why does this occur? Because domestic production has decreased, not only due to the decline in livestock numbers but also because of the abandonment of rural areas," explains Fasllia, a Professor at the Agricultural University. 
Another troubling aspect of imports, according to experts, is the surge in powdered milk imports. Last year, Albania imported 1 ton of milk powder from abroad. The primary sources are Ukraine, Greece, and the Czech Republic. 
"It is concerning because we have reached a point where powdered milk is replacing our fresh milk. Livestock farmers protest because powdered and imported milk are suffocating local production due to their lower cost," argues Professor Abdyl Sinani from the Faculty of Food Biotechnology. 
Official data also reveal a significant influx of palm oil into Albania last year. By the end of 2023, Albania had imported 3100 tons of palm oil, with 54% of it coming from Indonesia, followed by imports from Malaysia and Greece. 
Food safety experts emphasize the need for strict controls on palm oil parameters, as its indiscriminate use poses health risks to consumers. 
"The first step is quality control for palm oil. The National Food Authority must ensure the product meets allowed parameters before it reaches the market, as failing to meet these parameters poses serious health risks to consumers. Moreover, businesses using palm oil should clearly label its presence in products, such as sweets or dairy items, to inform consumers," states Sinani. 
In 2017, Albania witnessed a widespread debate about the use of palm oil in dairy products following exposés revealing its indiscriminate use. While the National Food Authority issued warnings and promised measures against violators, concrete results in addressing this issue have yet to materialize since the campaign. / Faktoje.al