Dairy Industry Overview in Azerbaijan

The dairy sector in Azerbaijan plays a crucial role in the country's agricultural framework, offering substantial nutritional and economic benefits. The industry has evolved significantly, moving from small-scale operations to modernized dairy farms and processing facilities.

Milk Production and Dairy Cattle

Azerbaijan boasts a substantial livestock base, with approximately 1.8 million heads of dairy cattle, including cows and buffaloes. This supports 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 continues to thrive.

Milk Processing

Each year, about 1.1 million tonnes of milk are processed in Azerbaijan, transforming raw milk into a diverse array of dairy products. This supports both local consumption and exports to international markets.

Cheese, Milk Powder, and Whey Production

The cheese sector in Azerbaijan is notable, producing approximately 15,000 tonnes annually, including both international and traditional local varieties. Additionally, the country 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 are pivotal in the industry. Atena LLC is renowned for its use of the ESL system for fresh products, Milla Dairy for its 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 markets in Russia, Georgia, and Moldova. Conversely, it imports about 100,000 tonnes of dairy products each year 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 thousand tonnes valued at 13.128 million USD.

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.

Significant growth has been observed in the import of milk and cream during the first seven months of the current year. According to the State Customs Committee, from January to July 2025, Azerbaijan imported 9,352 tonnes of dairy products, valued at 15.69 million USD, marking an 18.3% increase in volume compared to the previous year.

Modified: 2025/09/25


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