Milk market in Azerbaijan

Earlier Report Observations

The milk market in Azerbaijan recorded steady growth from 2.09 million tons in 2018 to 2.29 million tons in 2023. This expansion was primarily driven by sustained state support programs that provided subsidies, tax benefits, and concessional loans to dairy farmers and processors, encouraging investment and stabilizing supply. The modernization of key production facilities, such as Azərsüd's plants, enhanced processing efficiency and output capacity.

Stricter food safety regulations and mandatory labeling requirements enforced by the Food Safety Agency bolstered consumer trust in domestic dairy products. Anti-inflation measures implemented in 2022 helped contain retail price increases, supporting consumption volumes. Concurrently, the market structure evolved with the strengthening of local brands and their distribution through expanding supermarket networks.

By 2023, the market began diversifying with the entry of new product segments like plant-based almond milk alternatives. Although rising livestock production costs and higher import prices moderated the pace of growth, continued technological upgrades and state incentives for local manufacturers kept the overall market volume on a gradual upward trajectory.

Production milk in Azerbaijan

In kind, 2018-2021, K t

Top producers of milk, 2018-2021

World map of production of milk, 2018-2021

Milk production in Azerbaijan has increased for the third consecutive year. In 2021, the country produced 2,223 thousand tons of milk, representing a 1.4% increase over the previous year. Between 2018 and 2021, production grew by 6.9%, which translates to an average annual growth rate of 2.2%.

Annual dynamics of production in Azerbaijan in kind, 2018-2021, K t

Exports milk from Azerbaijan

Exports in kind, t

The data shows irregular changes, indicating a volatile market environment. Export volumes reached their lowest point in 2020 at 330 tons and peaked in 2021 at 579 tons, representing a 1.8-fold difference between these years. The 2021 figure was 75.8% higher than in 2020. The largest decline occurred in 2020, with a decrease of 41.3%.

Annual dynamics of product's exports from Azerbaijan in kind, 2018-2021, t

From 2018 to 2021, Georgia and Russia were the dominant export partners for Azerbaijan in terms of volume. Georgia accounted for 67.7% of total exports, while Russia represented 29.0%. Together, these two countries made up 96.7% of all exports, with other partners accounting for the remaining share.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Azerbaijan in kind, 2018-2021

Exports in value, K $ US

The data reveals irregular changes, pointing to a volatile market environment. Export values bottomed in 2018 and peaked in 2021, with a 2.1-fold difference between these years. In 2021, Azerbaijan's milk exports amounted to 1,356 thousand US dollars, marking a 91.1% year-over-year increase. The largest decline was recorded in 2020, with a decrease of 20.7%.

Annual dynamics of product's exports from Azerbaijan in value, 2018-2021, K $ US

Throughout the 2018–2021 period, Georgia and Russia remained the core markets for Azerbaijan's milk exports in value terms. Together, they accounted for 97.4% of total export flows, while other destinations held comparatively modest shares.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Azerbaijan in value, 2018-2021

Imports milk to Azerbaijan

Imports in kind, t

Milk imports to Azerbaijan have increased for the second consecutive year. In 2021, imports amounted to 11,190 tons, showing a solid 15.9% increase compared to the prior year. Over the 2018–2021 period, imports grew by 17.7%, with a compound annual growth rate of 5.6%. The lowest import volume was recorded in 2019 at 9,023 tons, which also saw the largest decline of 5.1%.

Annual dynamics of product's imports to Azerbaijan in kind, 2018-2021, t

From 2018 to 2021, Belarus, Ukraine, and Iran were the main sources of milk imports to Azerbaijan in volume terms. Belarus accounted for 29.9% of imports, Ukraine for 26.3%, and Iran for 15.9%. Together, these three countries absorbed 72.1% of total milk imports to Azerbaijan.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Azerbaijan in kind, 2018-2021

Imports in value, K $ US

After two years of growth, Azerbaijan's milk import value declined in 2021. Imports reached 14,745 thousand US dollars, showing a 3.7% decrease compared to the previous year. Over the 2018–2021 period, imports increased by 16.5%, with a compound annual growth rate of 5.2%. The highest import value was recorded in 2020 at 15,313 thousand US dollars, while the largest increase occurred in 2019 with a 13.6% rise.

Annual dynamics of product's imports to Azerbaijan in value, 2018-2021, K $ US

In the 2018–2021 period, three main markets—Ukraine, Belarus, and Turkey—together accounted for 71.5% of total milk imports to Azerbaijan in value terms.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Azerbaijan in value, 2018-2021