Milk and cream market in Armenia

Earlier Report Observations

Between 2018 and 2023, Armenia's market for not concentrated, not sweetened milk and cream contracted from 709 thousand tons to 606 thousand tons. Domestic production fell consistently over the period, while imports from Russia became increasingly important, especially in 2022 when they reached 11 thousand tons.

The surge in imports in 2022 coincided with a fivefold increase in Russian exports of dry milk and cream to Armenia, as Russian producers expanded output and sought export markets. However, by 2023, imports retreated to 6.2 thousand tons even as Russian exports to Armenia grew thirteenfold, suggesting that higher production costs in Russia, driven by increased feed, energy, and labor expenses, made shipped products less competitive in Armenia.

Throughout the period, Russian market factors such as droughts affecting feed prices and a shift in consumer preferences toward lactose-free and thicker yogurt products influenced regional dairy dynamics, but the overall Armenian market continued to shrink due to persistent declines in local milk production.

Production milk and cream in Armenia

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

World map of production of milk and cream, 2017-2020

Armenia's milk and cream production has declined for the third consecutive year. In 2020, the country produced 662.9 thousand tons of milk and cream, representing a slight decrease of 2.0% compared to 2019. Looking at the broader period from 2017 to 2020, production fell by 14.1%, which translates to an average annual decline of 4.9%.

Annual dynamics of production in Armenia in kind, 2017-2020, K t

Exports milk and cream from Armenia

Exports in kind, t

The market for milk and cream exports from Armenia showed significant volatility during this period. In 2019, exports hit their lowest point at just 0.1 tons, but then surged dramatically to 37 tons in 2020, marking an extraordinary increase of 30,900.0% year-over-year. This swing created a peak-to-trough difference of 310 times between these two years. The largest decline occurred in 2019, when exports dropped by 64.5%.

Annual dynamics of product's exports from Armenia in kind, 2017-2020, t

From 2017 to 2020, Armenia's milk and cream exports were almost exclusively directed to Russia, which accounted for 100.0% of total export volumes.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Armenia in kind, 2017-2020

Exports in value, K $ US

The value of Armenia's milk and cream exports experienced irregular and volatile changes. In 2019, export values reached their lowest point at 0.2 thousand US dollars, but then soared to 108 thousand US dollars in 2020, representing a massive year-over-year increase of 64,010.6%. This created a top-to-bottom ratio of 641 times between these years. The largest decline was recorded in 2019, when export values fell by 92.0%.

Annual dynamics of product's exports from Armenia in value, 2017-2020, K $ US

During the 2017-2020 period, Russia served as the primary and nearly exclusive market for Armenia's milk and cream exports in value terms, accounting for 100.0% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Armenia in value, 2017-2020

Imports milk and cream to Armenia

Imports in kind, t

Armenia's milk and cream imports have increased for the third consecutive year. In 2020, the country imported 1 427 tons of milk and cream, representing a substantial increase of 72.1% compared to 2019. Over the broader period from 2017 to 2020, imports grew by 132.1%, with an average annual growth rate of 32.4%.

Annual dynamics of product's imports to Armenia in kind, 2017-2020, t

From 2017 to 2020, Italy, Ukraine, and Iran were the largest sources of Armenia's milk and cream imports by volume. Italy accounted for 21.1% of imports, Ukraine for 19.4%, and Iran for 18.3%. Together, these three countries represented 58.8% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Armenia in kind, 2017-2020

Imports in value, K $ US

Armenia's milk and cream imports have grown for the third consecutive year in value terms. In 2020, import volumes reached 1 800 thousand US dollars, marking a sharp increase of 81.2% compared to the previous year. Over the 2017-2020 period, imports increased by 170.6%, with an average annual growth rate of 39.4%.

Annual dynamics of product's imports to Armenia in value, 2017-2020, K $ US

During the 2017-2020 period, Iran, Italy, and Russia were the largest suppliers of milk and cream to Armenia in value terms. Iran accounted for 25.7% of imports, Italy for 15.8%, and Russia for 14.9%. Collectively, these three countries represented 56.4% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Armenia in value, 2017-2020