Dairy Industry Overview in Azerbaijan
The dairy sector in Azerbaijan plays a crucial role in the country's agricultural framework, providing both nutritional and economic value. Over the years, the industry has evolved from small-scale producers to incorporating modern dairy farms and processing facilities.
Milk Production and Dairy Cattle
Azerbaijan supports an impressive livestock base of approximately 1.8 million heads of dairy cattle, including cows and buffaloes. This substantial livestock supports an annual milk production of around 2.2 million tonnes. However, there has been a 2.2% decrease in cattle herd numbers, with the current count at 2.5 million head.
Milk Processing
Approximately 1.1 million tonnes of milk are processed annually in Azerbaijan, transforming raw milk into a wide variety of dairy products that serve both local and international markets.
Cheese, Milk Powder, and Whey Production
Azerbaijan's cheese sector produces around 15,000 tonnes annually, including international cheese styles and traditional local varieties. Additionally, the country produces approximately 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 to the industry. Atena LLC is known 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
Significant 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 key markets in Russia, Georgia, and Moldova. Conversely, the country imports about 100,000 tonnes of dairy products each year from countries such as Belarus, Ukraine, and EU nations. Notably, in 2023, over 50,000 tonnes of dairy products were imported. In the first half of 2025, the import of milk and cream increased by 21.7% compared to the previous year, reaching 8.038 thousand tonnes, valued at 13.128 million US dollars.
Notable Dairy Market Events
The Azerbaijani dairy market has seen international collaborations and government initiatives supporting innovation, especially in rural areas. A significant event was the International Dairy Federation's delegation visit to Milla Dairy. Moreover, the DairyRally Azerbaijan 2025 roadshow underscores the industry's growth and technological advancements.
Challenges and Developments
Recently, butter production decreased by 2.5%, and temporary restrictions on livestock imports were imposed by the Azerbaijan Food Safety Agency due to epizootic concerns. Despite these challenges, there are active developments in national dairy products. Azersun Holding is 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.
Furthermore, Azerbaijan remains a primary export destination for Russian dairy products, with minimal trade barriers, making it a key market for Russian exports.
Modified: 2025/08/15