Why do Azerbaijani milk producers not buy raw materials from local farmers?

Last year, Azerbaijan imported from abroad 17,649 tons of milk and cream (including curdled, fermented, in powder, except for yogurt). Of these, 5,792 tons were imported from Russia, 3,862 tons - from Belarus, and 722 tons - from Ukraine. Thus, these three countries accounted for about 60% of all imports of milk and cream. In the reporting period, 46% of dry milk and cream purchased from abroad fell on Ukraine, and 25% - on Belarus. 70% of yogurt imported into the country is purchased from Russia, and 20% from Belarus.

It was assumed that the demand for milk produced by domestic farmers would increase, but farmers claim the opposite. They express concern that their products are not being bought.

Samir Eyyubov, Chairman of the Association of Dairy Producers of Azerbaijan, told Report that large milk processors do not buy from local farmers, but prefer semi-finished products from Iran since it is more profitable to process them than to buy natural milk.

"It practically 'kills' the local market. Previously, the remains of local farmers' products were exported, now export is suspended, all milk produced is sent to the domestic market. Therefore, the demand for milk from local farmers is not formed. We are currently engaged in increasing the level of exports."

Commenting on the impact of the geopolitical processes taking place in the region on the prices for dairy products in Azerbaijan for Report, Veysaloglu noted that since the supply of products from Ukraine has been suspended, demand is shifting towards markets such as Russia, Poland: "The fact that demand exceeds supply, unfortunately, is also reflected in the price of products”.

As for deliveries from Russia, Isa Huseynzada, marketing manager for milk and dairy products at Veysaloglu Distribusiya, which is part of the Veysaloglu group of companies, noted that there are currently serious production and logistical problems in the regions located near the conflict zone: " It is also one of the main factors affecting prices. We are also seeing a significant increase in prices for products imported from other regions. Processed cheese has risen in price by 20-22%, oils - 15%, condensed milk - 30-40%. Producers attribute this mainly to rising prices for raw materials.”

Aynura Yusifzada, a spokesperson for Athena, says they have their own farms: “For this reason, we hardly buy raw materials. We only cooperate with local farmers when necessary.”