Dairy Industry Overview in Azerbaijan

The dairy sector in Azerbaijan is a cornerstone of its agricultural framework, crucial for providing nutrition and economic value through both domestic consumption and exports. The industry has witnessed significant development, transitioning from small-scale producers to modern dairy farms and processing facilities.

Milk Production and Dairy Cattle

Azerbaijan boasts approximately 1.8 million heads of dairy cattle, including cows and buffaloes. This livestock base supports an annual milk production of around 2.2 million tonnes, reflecting the efficiency and dedication of Azerbaijani dairy farmers. However, the country has recorded a negative trend in cattle herd numbers, with a 2.2% decrease to 2.5 million head.

Milk Processing

Annually, about 1.1 million tonnes of milk are processed in Azerbaijan. This processing transforms raw milk into a diverse array of dairy products, catering to both local and international markets.

Cheese, Milk Powder, and Whey Production

Azerbaijan's cheese sector produces approximately 15,000 tonnes annually, offering a blend of international cheese styles along with traditional local varieties. The country also produces around 5,000 tonnes of milk powder and whey each year, meeting local demands and serving export markets.

Key Dairy Enterprises

Leading companies such as Atena LLC, Milla Dairy, and Südlü LLC play vital roles in the industry. Atena LLC is noted for using the ESL system for fresh products, while Milla Dairy is renowned for its premium quality milk and cream. Südlü LLC specializes in cheese and butter production.

Dairy Farms

Significant dairy farms include Gilan Dairy Farms, Muğan Dairy Farm, and Shamakhi Dairy Farm. These farms 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, with key markets including Russia, Georgia, and Moldova. Conversely, the country imports about 100,000 tonnes of dairy products each year from Belarus, Ukraine, and EU nations. In 2023, over 50,000 tonnes of dairy products were imported, reflecting diverse consumer preferences and opportunities for exporters.

Notable Dairy Market Events

The Azerbaijani dairy market has seen international collaborations and government initiatives supporting innovation, especially in rural areas. A notable event was the International Dairy Federation's delegation visit to Milla Dairy. The DairyRally Azerbaijan 2025 roadshow further highlights the industry's growth and technological advancements.

Challenges and Developments

Recently, butter production decreased by 2.5%, and the Azerbaijan Food Safety Agency imposed temporary restrictions on livestock imports due to epizootic concerns. Despite these challenges, there is active development in national dairy products, and companies like Azersun Holding aim to strengthen their market position and export potential. Danone is ending its presence in Azerbaijan, with LLC 'Danone,' registered in Azerbaijan in November 2006, announcing the liquidation of its legal entity.

Modified: 2025/07/26

---