Armenia's Dairy Industry Overview

The dairy sector in Armenia is a pivotal component of the country's agricultural landscape, with both large-scale farms and numerous small household producers playing essential roles. The industry not only satisfies domestic consumption but also enhances the country's dairy processing capabilities.

Milk Production

Annually, Armenia produces approximately 750 million liters of milk. This significant production volume is vital for sustaining the dairy processing industry and underlines the sector's importance to the national economy.

Dairy Cattle and Goat Population

Armenia is home to about 157,000 dairy cattle, contributing to a robust and diverse dairy farming ecosystem. The country also maintains an estimated 50,000 dairy goats, supporting niche markets for goat milk and related products.

Milk Processing and Cheese Production

Out of the total milk produced, around 500 million liters are processed annually, resulting in a wide range of dairy products. Cheese production is particularly noteworthy, with an annual output of about 30,000 metric tons, including traditional Armenian varieties that enjoy popularity both locally and internationally.

Milk Powder and Whey Production

Armenia produces approximately 5,000 metric tons of milk powder and whey each year, which are essential for both domestic food production and export markets.

Key Dairy Enterprises

Significant companies within Armenia's dairy sector include Ashtarak Kat LLC, known for its diverse product range including milk, cheese, and yogurt; Tamara Ltd, which specializes in traditional Armenian cheeses with a strong focus on exports; and Bonilat CJSC, a major player in the domestic market, particularly in milk and yogurt production.

Notable Dairy Farms

Artashat Dairy Farm and Lusavor Farm are noteworthy contributors to the local milk supply. Lusavor Farm, in particular, engages in both cattle and goat milk production, catering to niche markets.

Export and Import of Dairy Products

Armenia exports about 10,000 metric tons of dairy products annually, primarily targeting neighboring countries like Russia and Georgia. Key export items include cheese, milk powder, and traditional Armenian products. To supplement domestic supply, especially during high demand periods, Armenia imports approximately 3,000 metric tons of dairy products each year, with major imports being butter, cheese, and milk powder.

Significant Events and Market Trends

The Armenian dairy market is on a growth trajectory, highlighted by "Voske Kat"'s planned $201 million investment in sector expansion. However, the country faces a slight decline in cattle herd numbers, with a 0.7% decrease to 621,000 head recently noted. Additionally, there is an observed moderate increase in agricultural producer prices, with a 4.6% rise in the first half of 2025 compared to 2024, and a 2.9% increase in June 2025 compared to June 2024.

Armenia is focusing on stricter safety compliance and implementing the Hazard Analysis and Critical Control Points (HACCP) system. Recent inspections by the Armenian Food Safety Inspectorate led to the suspension of several dairy products due to safety violations. A specific inspection at the Eco Milk Group facility in Vardenis uncovered several issues, resulting in a temporary production suspension of certain product types.

As part of its regulatory framework enhancement, Armenia is preparing two projects to update its dairy standards. The country is also part of the Eurasian Economic Union, where there is an increasing concern about counterfeit dairy products, as noted by Rosselkhoznadzor.

Modified: 2025/09/13


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