Across the Adria region, the dairy trade is no longer flowing smoothly. In just a few weeks, a patchwork of bans, tightened controls, and shifting market dynamics has emerged, redrawing the rules of a once-integrated sector. Serbia has halted milk imports. Croatia is tightening its borders. Montenegro’s producers are calling for protection. Albania is watching imports fall, even without intervention. What’s going on?
And what does this sudden flurry of activity say about the region’s economic priorities — and its appetite for true cooperation?
Serbia’s Sudden Clampdown
Serbia has taken centre stage in the regional dairy debate. In early 2025, the country introduced a series of restrictive measures on dairy imports. Some were grounded in legitimate health concerns — following foot-and-mouth disease (FMD) outbreaks in Hungary and Slovakia, Serbia halted imports of animal products from affected countries. But eyebrows were raised when Serbia also blocked milk imports from Bosnia and Herzegovina — a country not listed among those with any recent FMD cases.
Now, a statement from Agriculture Minister Dragan Glamočić has confirmed what many suspected: the move was primarily economic.
“Given that dairies are burdened with historic stockpiles due to increased imports, rising domestic production, and declining consumption, the Ministry has halted the issuance of import permits for milk, dairy products, and palm oil-based substitutes,” Glamočić stated in late April, after a meeting with domestic dairies.
In other words, the goal is not just to protect Serbia from disease — but to protect Serbia’s struggling dairy sector from collapse.
Bosnian producers quickly reacted. Agricultural associations called for reciprocal measures and voiced concern about the politicisation of trade. For a region that has long touted its integration ambitions, the incident raised a more uncomfortable question: is solidarity now selective?
Croatia Tightens the Border
Croatia, while stopping short of a ban, has significantly stepped up border checks.
Amid rising concerns over FMD outbreaks in neighbouring Hungary and Slovakia, Croatian authorities are now demanding stricter veterinary documentation and disinfection certificates for transport vehicles carrying live animals or raw milk.
These measures reflect a growing caution within the EU member state, which must balance its single-market obligations with national food security. Domestic producers, already struggling with a surge in imports over the past year, have welcomed the move.
FMD Outbreaks Reshape Regional Rules
The health concern is real. In 2025, Hungary reported its first outbreak of foot-and-mouth disease in more than half a century, quickly followed by cases in Slovakia, near the Hungarian border. Serbia, Croatia, and Bosnia responded by restricting animal imports and implementing tougher border protocols.
While those measures are understandable, they also highlight the absence of a coordinated regional response mechanism — and the fragility of cross-border trade in the face of emergency.
Montenegro: Overshadowed by Imports
Montenegro’s dairy producers have been sounding the alarm. The local market is saturated with imported dairy, particularly yogurt, leaving homegrown production at risk. The Montenegrin government has acknowledged the issue and announced a working group to explore corrective measures. Though no formal restrictions have been introduced yet, the language of protection is gaining ground.
Albania’s Quiet Correction
In Albania, the trend is moving in the opposite direction. Milk imports dropped by over 15% in Q1 2025, not because of new policies, but because domestic prices have fallen enough to make local milk more competitive. While this offers temporary relief to Albanian farmers, it also exposes the sector’s vulnerability to market swings — and the absence of a long-term support framework.
Pharmaceutical Industry Faces Lactose Shortage
Beyond the dairy sector, Serbia’s import restrictions are causing ripples in unexpected places. Lactose, derived from milk, is a critical excipient used in the production of numerous medications. With milk imports restricted and local supplies under strain, pharmaceutical companies in Serbia and neighbouring countries have begun expressing concerns about potential shortages of pharmaceutical-grade lactose — a substance essential for tablet manufacturing and drug formulation.
Industry representatives have quietly appealed for exemptions or alternative sourcing solutions to avoid disruptions to medicine production. The issue underscores how a decision taken in the name of agriculture can quickly cascade into challenges for public health and industry.
Ripple Effects Across Industries
While pharmaceutical companies have been the most vocal, they’re far from alone in feeling the effects of dairy import restrictions. Several other sectors are now quietly grappling with disruptions tied to limited access to lactose and related dairy derivatives.
The food processing and confectionery industry — particularly makers of chocolate, baked goods, and sweets — rely on lactose as a sweetener, emulsifier, and browning agent. Reformulations or production delays may soon follow.
Producers of infant formula are also on alert. Lactose is a primary carbohydrate in most baby formula, closely resembling the makeup of human milk. Any sustained shortage could put pressure on supplies — and on new parents.
Animal feed manufacturers may soon face difficulty sourcing lactose used in early-life feed formulations for piglets and calves. Substitutes exist, but costs are higher and nutritional equivalence varies.
Even the brewing industry could take a hit: styles like milk stouts use lactose to create their distinctive texture and sweetness, and some craft brewers are already watching stocks carefully.
Meanwhile, chemical and fermentation industries that use lactose as a substrate in the production of lactic acid and other compounds may need to adjust their sourcing or shift processes altogether.
What began as a milk market adjustment now echoes far beyond the dairy aisle.
The Questions Ahead
The dairy divide now unfolding may be the clearest sign yet that while the region shares many challenges, it still struggles to share solutions. This moment raises urgent questions: Is the Adria region entering a new era of food protectionism? Can economic self-interest coexist with regional solidarity? And when the next crisis hits — whether it’s rooted in health, climate, or global supply chains — will these countries find the strength to act together, or fall back into fragmented responses?
As milk becomes a symbol of much more than nutrition — touching pharmaceuticals, trade, and national policy — it may also become the clearest indicator of how far the region still has to go in building true economic interdependence.
