Dairy Industry in Armenia
The dairy industry in Armenia serves as a cornerstone of its agricultural economy, integrating both large-scale dairy farms and numerous small household producers. This sector is essential for meeting domestic consumption needs and enhancing the country's dairy processing capabilities.
Milk Production
Armenia produces approximately 750 million liters of milk annually, highlighting the industry's importance to the national economy. This production level is crucial for sustaining the dairy processing sector.
Dairy Cattle and Goat Population
The country hosts around 157,000 dairy cattle across various regions, contributing to a robust and diverse dairy farming ecosystem. Additionally, Armenia maintains an estimated population of 50,000 dairy goats, supporting a niche market for goat milk and related products.
Milk Processing and Cheese Production
Approximately 500 million liters of milk are processed each year, providing a wide array of dairy products to consumers. Cheese production is particularly prominent, with an annual volume of about 30,000 metric tons, including traditional Armenian varieties that are popular both locally and internationally.
Milk Powder and Whey Production
Armenia produces around 5,000 metric tons of milk powder and whey annually, which are vital for both domestic food production and export markets.
Key Dairy Enterprises
Notable companies in Armenia's dairy sector include Ashtarak Kat LLC, known for its wide range of products such as milk, cheese, and yogurt; Tamara Ltd, specializing in traditional Armenian cheeses with a focus on exports; and Bonilat CJSC, which plays a significant role in the domestic market through its milk and yogurt production.
Notable Dairy Farms
Artashat Dairy Farm and Lusavor Farm are noteworthy contributors to the local milk supply, with Lusavor Farm engaging in both cattle and goat milk production to serve niche markets.
Export and Import of Dairy Products
Armenia exports about 10,000 metric tons of dairy products annually, with key items being cheese, milk powder, and traditional Armenian products sent primarily to neighboring countries like Russia and Georgia. The country also imports approximately 3,000 metric tons of dairy products each year to supplement domestic supply, especially during periods of high demand, with major imports including butter, cheese, and milk powder.
Significant Events and Market Trends
The Armenian dairy market is poised for growth, with upcoming changes such as the adoption of new labeling standards for dairy and meat products to enhance consumer information and transparency. "Voske Kat" plans to invest $201 million in expanding the sector, indicating a robust growth trajectory.
Additionally, Armenia faces a slight decline in cattle herd numbers, with a 0.7% decrease to 621,000 head noted recently. The country remains a significant importer of Russian and Belarusian dairy products, including skimmed milk powder, which is highly demanded by Armenian companies.
Price trends indicate a moderate increase in agricultural producer prices, with a 4.6% rise in the first half of 2025 compared to the first half of 2024, and a 2.9% increase in June 2025 compared to June 2024. Armenia is focusing on implementing stricter safety compliance and the Hazard Analysis and Critical Control Points (HACCP) system, with plans to monitor compliance in retail environments and follow-up evaluations at the production level if infringements are found.
An inspection by the Armenian Food Safety Inspectorate led to the suspension of several dairy products. An inspection conducted at the Eco Milk Group dairy facility in Vardenis uncovered several violations, leading to a temporary suspension of the production of certain product types.
Modified: 2025/09/05