The Small Ruminant Sector in Romania: Developments, Challenges, and Market Concentration

The small ruminant sector is traditional for many regions in Europe, with effects on European agricultural outcomes and significant economic, social, and ecological implications. The article proposes an assessment of the sheep and goat sector at both the European and Romanian levels, analyzing the main trends, challenges, and development opportunities. For national-level research, the number of companies with the main field of activity under NACE 0145, turnover, net profit, and employment in the sector were used. The degree of market concentration was evaluated using HHI and GSI indicators. At the EU27 level, some member states with a tradition in raising these animals hold more than half of the livestock. The sector has a modest contribution to meeting the community’s meat needs, with demand being partially covered by external imports. The study results showed that in Romania, the small ruminant sector benefits from favorable environmental conditions, tradition, and a specialized workforce. Although some counties have well-developed farms that generate consistent revenue and profit, primarily based on live animal exports to Arab countries, the market is fragmented, with a relatively uniform distribution of specialized firms nationwide. Some regions perform better, with differences in revenue and profit at the county level. The national sector faces challenges related to low profitability, declining consumption, and climate change. Support measures from authorities are needed for farmers, along with investment in processing units and the development of well-integrated value chains to increase the competitiveness of Romanian companies.