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24th MEB Conference - Budapest, 24.04.2026

Strengthening the Position of Farmers in the Dairy Value Chain in Light of the EU Common Agricultural Policy (CAP): Insights from Albania | MEB Conference

Strengthening the Position of Farmers in the Dairy Value Chain in Light of the EU Common Agricultural Policy (CAP): Insights from Albania

Abstract

This article analyzes the position of Albanian dairy farmers within the value chain by assessing their power in price negotiations, access to markets, and integration with processors and retailers. Using the framework of the EU Common Agricultural Policy (CAP), which aims to strengthen farmers' positions in the value chain, the study evaluates how Albanian dairy farmers align with these objectives and identifies key challenges. The analysis highlights structural weaknesses, such as fragmented production, weak bargaining power, and limited access to financial and technological resources, which hinder competitiveness. The study aims to identify ways to empower farmers within the dairy value chain by leveraging policies and programs provided by the European Union, particularly the "Farm to Fork" Strategy. Through a comprehensive approach implemented in the framework of the project “"Farm to Fork Academy for Green Western Balkan-our common European future” financed by EU, involving focus group discussions, interviews with key stakeholders, and secondary data analysis, the study provides an in-depth assessment of the current state of the sector and the positioning of farmers within the value chain. Furthermore, it offers concrete recommendations to enhance farmer cooperation, improve quality standards, and implement fair trading mechanisms. The study suggests that government and international partners should support investments in infrastructure and technology, including the establishment of milk collection centers and advanced dairy farm equipment. Additionally, fostering farmer cooperatives would strengthen their bargaining power and improve access to financing and markets. If the right policies are implemented with full support from the EU and national stakeholders, the dairy sector has the potential to increase rural incomes, enhance the quality of life in rural areas, and contribute to overall economic development. Recommendations focus on policies that could enhance farmers' roles in the value chain, including cooperatives, improved market access, and better financial instruments.
Keywords: agriculture, dairy sector, value chain, Albania
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