Feta cheese at risk due to reduced milk production

This traditional Greek product has grown into a €1 billion industry, primarily focused on exports. However, animal diseases and a shortage of new farmers threaten its future.

Feta cheese at risk due to reduced milk production

This article is an AI translation of an original piece published in Greek. Read original

For decades, feta has been a traditional Greek product with strong export potential. Today, it has evolved into something much bigger: an industry worth nearly €1 billion, supporting tens of thousands of farming families and steadily strengthening its position in international markets.

Behind this impressive export performance, however, Greek sheep and goat farming is entering perhaps the most challenging phase of its modern history.

It was precisely this dichotomy—international growth on the one hand and intense structural pressures on the other—that dominated the discussions at the Boussias Dairy Conference, held with the support of SEVGAP (Association of Greek Dairy Product Industries).

Representatives from the industry, the livestock sector, and EDOF (National Interprofessional Organization of Feta) described a sector that continues to grow commercially, but where raw material supplies are shrinking dangerously.

As noted by Michalis Sapantis, Chairman of the Board of the National Interprofessional Organization of Feta, as well as Christos Giannitsis, Vice Chairman of SEVGAP and CEO of OMIROS DAIRIES SA, feta production has increased in recent years from approximately 75,000–90,000 tons to nearly 140,000 tons annually, while exports now exceed 105,000 tons.

In fact, as they noted, 70% of the value created flows back into primary production, supporting nearly 55,000 families of goat and sheep farmers in rural Greece. This development model, however, is now reaching a limit: milk availability.

Animal diseases in recent years—peste des petits ruminants, sheep and goat pox, and foot-and-mouth disease—have caused significant losses in livestock, drastically reducing goat and sheep milk production. Greece produces approximately 750,000 tons annually, but this year alone, losses are estimated to reach 60,000 to 70,000 tons—nearly 10% of total production—according to attendees.

Market players warn that animal diseases can no longer be treated as emergencies, but as a permanent new reality for Greek livestock farming. The consequences are already visible in the market.

Feta sales are growing at a rate of about 4.5% annually, while milk production is moving in the opposite direction. As attendees noted, the gap between supply and demand is causing serious concern for the coming years, as the country risks losing export contracts and international market share— losses that are difficult to recover once buyers turn to other suppliers.

The situation is particularly dire on Lesbos, where approximately 70,000 sheep were culled due to foot-and-mouth disease.

At the same time, the sector is also facing a profound demographic problem. Younger generations are increasingly abandoning livestock farming, and generational succession is no longer a given.

At the same time, the industry is attempting to reposition feta in the international market as a premium product with high added value, rather than just another mass-market white cheese. Market players have compared the position it could achieve to that of products such as Roquefort, Parmigiano Reggiano, or Manchego.

Germany remains the most important market for feta. Nevertheless, trade disputes in third countries continue, as the use of the name “feta” remains a source of international controversy.

The announcement by the Greek Feta Association (EDOF) regarding the relocation of its headquarters from Athens to Larissa was both symbolic and substantive. The plan includes the creation of a permanent “House of Feta,” which will serve as a hub for producers, processors, and exporters.

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