Azerbaijan Dairy Industry Overview
The dairy sector in Azerbaijan is integral to the nation's agricultural framework, providing essential nutritional and economic benefits. Over the years, the industry has evolved from small-scale operations to modernized farms and processing facilities.
Milk Production and Dairy Cattle
Azerbaijan boasts a substantial livestock base with approximately 1.8 million heads of dairy cattle, supporting an annual milk production of around 2.2 million tonnes. Despite a 2.2% decrease in cattle herd numbers, currently at 2.5 million head, the industry remains robust.
Milk Processing
Approximately 1.1 million tonnes of milk are processed annually in Azerbaijan, transforming raw milk into a wide range of dairy products for both local consumption and international exports.
Cheese, Milk Powder, and Whey Production
The cheese sector is notable, producing about 15,000 tonnes annually, including both international and traditional varieties. Additionally, Azerbaijan produces around 5,000 tonnes of milk powder and whey each year.
Key Dairy Enterprises
Leading companies such as Atena LLC, Milla Dairy, and Südlü LLC play crucial roles in the industry. Atena LLC is renowned for its ESL system for fresh products, Milla Dairy for premium quality milk and cream, and Südlü LLC for its cheese and butter production.
Dairy Farms
Prominent dairy farms like Gilan Dairy Farms, Muğan Dairy Farm, and Shamakhi Dairy Farm are recognized for their contributions to raw milk supply and sustainable practices.
Export and Import of Dairy Products
Azerbaijan exports approximately 150,000 tonnes of dairy products annually to Russia, Georgia, and Moldova. The country imports about 100,000 tonnes annually from Belarus, Ukraine, and EU nations. In 2023, over 50,000 tonnes were imported, with a notable 21.7% increase in milk and cream imports in the first half of 2025, totaling 8,038 tonnes valued at 13.128 million USD. Significant growth was observed with imports reaching 9,352 tonnes, valued at 15.69 million USD, marking an 18.3% increase in volume compared to the previous year.
Notable Dairy Market Events
Recent years have seen international collaborations and government initiatives promoting innovation, particularly in rural areas. A significant event was the International Dairy Federation's delegation visit to Milla Dairy. The DairyRally Azerbaijan 2025 roadshow highlights the industry's growth and technological advancements.
Challenges and Developments
The sector faces challenges such as a 2.5% decrease in butter production and temporary import restrictions on livestock due to epizootic concerns. Despite these, developments continue with Azersun Holding focusing on strengthening its market position and export potential. Meanwhile, Danone is ending its presence in Azerbaijan, with LLC 'Danone' announcing the liquidation of its legal entity. Azerbaijan remains a key export destination for Russian dairy products, facilitated by minimal trade barriers. Additionally, Azerbaijan imports Kazakhstani yogurt, kefir, and ryazhenka. Azerbaijan contributes 1.2% to Russia's dairy imports.
Modified: 2025/10/16