Understanding the Maltese Dairy Industry and Its Role in Greenhouse Gas Emissions Reporting

The dairy industry is an essential sector of Malta's economy, yet it faces unique challenges due to the country's size, geographical location, and agricultural practices. As the European Union strengthens its environmental reporting requirements and sustainability goals, Malta’s dairy producers are at a crossroads: how to remain competitive while reducing greenhouse gas (GhG) emissions. Dr. Clara Chetcuti, Senior Research Officer at the Applied Research and Innovation Centre (ARIC) within Malta’s leading applied sciences college, MCAST, is team leader of a pivotal market research survey as part of the COVERE2 project, which is poised to deliver a significant impact on the Maltese agrifood sector.

COVERE2, an international initiative co-funded by EIT Food and the EU, aims to provide agrifood producers, processors, and farmers with the tools needed to accurately monitor and reduce GhG emissions. In this blog, we will take a closer look at the Maltese dairy sector and how the findings from this survey could reshape the landscape of environmental responsibility in the country.

The Main Players in Malta’s Dairy Sector

Malta’s dairy sector is largely monopolised by the Collective of Milk Producers (KPH), which controls Malta Dairy Products Ltd. (MDP). This company’s flagship brand, Benna, dominates the dairy market in both Malta and Gozo, producing a range of milk and cheese products widely recognised across the islands.Ħanini, a smaller brand under the Magro Brothers banner, provides limited competition to Benna. However, the dominance of MDP, which holds a significant market share, makes it the primary driver of the industry’s activities, including its potential for emissions reductions.

In addition to MDP, the Maltese agricultural and dairy sectors are represented by several cooperatives. These include the Maltese Goat and Sheep Cooperative, the Daily Dairy Distribution Cooperative Ltd., and the Agricultural Cooperative Ltd., among others. Together with the KPH, these collectives represent the interests of dairy farmers and agricultural producers across Malta and Gozo, making them vital stakeholders in any discussions around emissions reporting and sustainability.

The extent of greenhouse gas emissions in Malta is documented in the National Inventory Document on GhG emissions and removals, which has been published annually since 2004. The most recent report, released in 2024 and covering data up to 2022, provides a comprehensive breakdown of emissions by industry and by type of gas. Unsurprisingly, Malta’s largest emitters are the energy and transport sectors, which aligns with European Union-wide trends.

However, agriculture consistently contributes to the country's GhG emissions, averaging 84 GgCO2eq. between 2009 and 2022. Although this figure has plateaued after an initial decline between 1992 and 2009, it is clear that any further reductions will require new strategies for emissions management. Despite its importance, the National Inventory does not specifically isolate emissions from the dairy sector. The industry is, however, involved in national reporting through data collection from MDP, KPH, and various other stakeholders, such as Eurostat and the National Statistics Office (NSO). This suggests that while dairy production is monitored, there is no clear accounting for emissions along the entire dairy supply chain.

Emission Hotspots in Dairy Production

Research from the Horizon-funded PROTECT-ITN project has provided insights into the most energy-intensive stages of dairy production. Pasteurisation and packaging are identified as the most electricity- and fuel-demanding processes. This is particularly relevant in Malta, where many dairy products are processed through MDP’s central plant.

On the farm level, both local and international studies point to concentrated animal feed as the largest emitter of methane and other greenhouse gases. In Malta, this challenge is compounded by the need to import feed due to the limited agricultural output on the islands. This dependence on imported feed increases the sector's overall carbon footprint.

Sustainable Energy from Dairy Waste

While emissions reporting and reduction are essential for Malta to meet its international obligations, the economic potential of transforming waste into energy could also be a game-changer for local farmers. Small and large dairy farms alike are interested in reducing their emissions and converting dairy waste into renewable energy. Not only would this make their operations more sustainable, but it would also create an additional revenue stream by allowing them to sell surplus energy to the national grid. This approach could help reverse the steady emission levels from the agricultural sector over the last 15 years and provide much-needed financial relief to farmers facing high overhead costs.

The ongoing research being conducted by the ARIC team, under the auspices of the COVERE2 project, offers a promising path forward for the Maltese dairy industry. By developing a digital tool to monitor and reduce greenhouse gas emissions, COVERE2 provides practical solutions that align with new Corporate Sustainability Reporting Standards and Environmental, Social, and Responsible (ESR) best practices. These innovations could revolutionise how dairy producers account for emissions and implement sustainable practices.

However, there is still a significant gap in how GhG emissions are measured across the entire dairy supply chain in the Maltese market. While MDP and other major players provide data on milk production, there is no evidence to suggest that they currently account for emissions from their farms, processing plants, distribution networks, or packaging processes. Closing this gap will be essential if Malta’s dairy sector is to meet its sustainability targets.

Conclusion

The Maltese dairy industry, though relatively small, plays a significant role in the country’s agricultural output and greenhouse gas emissions. With the dominance of MDP and a handful of cooperatives, the sector is well-positioned to lead the charge in emissions reductions. However, achieving meaningful progress will require a concerted effort to track and reduce emissions across the entire supply chain—from feed importation to farm management and from processing to packaging. The COVERE2 project’s digital tool represents a crucial step in this direction, offering farmers and producers the support they need to embrace sustainable practices and achieve EU-wide GhG emissions targets.

Through proactive innovation and collaboration, the Maltese dairy sector has the potential to set an example for small-scale industries across Europe, demonstrating that even the smallest players can make a big impact on global sustainability efforts.

References 

[1] EIT Food, Covere2 - Collecting, verifying, reporting and reducing greenhouse gas emissions (last updated: 2023), available at: . 

[2] Malta Competition and Consumer Affairs Authority, ‘Findings of the Office for Competition: Ex-officio Investigation regarding the Prices of Benna Fresh Milk Products’ (2021), available at: , pp.14, 16, 17. 

[3] Benna, ‘About’ (last updated: 2023), available at: . 

[4] Magro Group, ‘About Us’, (last updated: ), available at: . 

[5] MCCAA (2021), p.17.

Malta Resources Authority o.b.o The Ministry for the Environment, Energy and Regeneration of the Grand Harbour, Malta's National Inventory Document of Greenhouse Gas Emissions and Removals (2024), pp.28-496. 

 Malta Resources Authority (2024), pp.22, 24.

Ibid.; European Commission, ‘Climate Action Progress Report Country Profile: Malta’ (2022), available at: .  

 Malta Resources Authority (2024), p.240.

PROTECT-ITN, Modelling energy consumption in the dairy supply chain Single and Multi-product Manufacturing and Distribution, ed. by Rachel Louise Gomes (European Commission, December 2020), available at: , p.54. 

 MCCAA (2021), pp.63, 67; Lavinia Proietti, Mariano Pauselli, Luisa Paolotti, George Attard (2016), Environmental impact evaluation of dairy farms through life cycle assessment: a case study in Malta [a study emerging from Atti del X Convegno dellla Rete Italiana LCA 2016: Life Cycle Thinking, sostenibilità ed economia circolare, held in Ravenna between 23rd and 24th June, 2016] (Laboratorio Tecnografico ENEA, Frascati, 2016), pp. 246-255, (p.253).

Vivienne Zammit, The Feasibility of Biogas Systems in Farms in Gozo, [a dissertation submitted to the University of Malta in fulfilment of the Master of Science in Environmental Management and Sustainability, 2016], pp. iv-72 (p.57).