Overview of Armenia's Dairy Industry

The dairy sector in Armenia plays a crucial role in the country's agricultural landscape, contributing significantly to both domestic consumption and the dairy processing industry. It is characterized by a combination of large-scale farms and numerous small household producers, ensuring a reliable supply chain.

Milk Production

Armenia produces approximately 750 million liters of milk each year, underscoring the sector's importance to the national economy and supporting various dairy processing activities.

Dairy Cattle and Goat Population

The country is home to about 157,000 dairy cattle, providing a strong foundation for dairy farming. In addition, Armenia has an estimated 50,000 dairy goats, catering to niche markets for goat milk and related products.

Milk Processing and Cheese Production

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, featuring traditional Armenian varieties popular 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 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 specializes in traditional Armenian cheeses with a strong export focus, while Bonilat CJSC is 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, mainly to neighboring countries like Russia and Georgia. Key export items include cheese, milk powder, and traditional Armenian products. To meet domestic demand, especially during peak 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, marked by "Voske Kat"'s planned $201 million investment in sector expansion. However, the country faces a slight decline in cattle herd numbers, with a 1.7% decrease recently noted. Additionally, there is a 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 through the implementation of the Hazard Analysis and Critical Control Points (HACCP) system. Recent inspections by the Armenian Food Safety Inspectorate resulted in the suspension of several dairy products due to safety violations. A specific inspection at the Eco Milk Group facility in Vardenis uncovered several issues, leading to a temporary suspension of certain product types.

As part of its regulatory framework enhancement, Armenia is preparing two projects to update its dairy standards. Being part of the Eurasian Economic Union, the country is increasingly vigilant about counterfeit dairy products, as noted by Rosselkhoznadzor.

Armenia is also an importer of Kazakhstani dairy products, including milk and cream, yogurt, kefir, ryazhenka, and cheese and cottage cheese.

Modified: 2025/10/03


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