Azerbaijan Dairy Industry Overview
The dairy sector in Azerbaijan forms a vital part of the nation's agricultural framework, offering essential nutritional and economic benefits. Over the years, the industry has transitioned from small-scale operations to modernized farms and processing facilities.
Milk Production and Dairy Cattle
Azerbaijan maintains a robust livestock base with approximately 1.8 million heads of dairy cattle, leading to an annual milk production of around 2.2 million tonnes. Despite a 2.2% decrease in cattle herd numbers, currently at 2.5 million heads, the sector remains resilient.
Milk Processing
Annually, about 1.1 million tonnes of milk are processed in Azerbaijan, transforming raw milk into a wide array of dairy products for both domestic use and international markets.
Cheese, Milk Powder, and Whey Production
The cheese production sector is prominent, with an output of approximately 15,000 tonnes per year, encompassing both international and traditional varieties. Furthermore, Azerbaijan produces around 5,000 tonnes of milk powder and whey annually.
Key Dairy Enterprises
Leading companies, including Atena LLC, Milla Dairy, and Südlü LLC, play significant roles in the industry. Atena LLC is known 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 countries like Russia, Georgia, and Moldova, while importing about 100,000 tonnes from Belarus, Ukraine, and EU nations. In 2023, imports exceeded 50,000 tonnes, with notable increases in milk and cream imports in the first half of 2025.
Notable Dairy Market Events
Recent years have seen international collaborations and government initiatives aimed at promoting innovation, especially 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 challenges, developments continue with Azersun Holding focusing on strengthening its market position and export potential. Azerbaijan remains a key export destination for Russian dairy products, facilitated by minimal trade barriers.
Azerbaijan is actively working on establishing territories free from animal diseases, with the participation of international organizations such as the FAO and WOAH, to improve epizootic conditions and expand livestock product exports.
Yalama Agropark LLC achieved a record volume of dairy production in April 2026, marking a significant contribution to the national food security of Azerbaijan.
Modified: 2026/05/09