July 23, 2025 | Baku
In a puzzling twist that contradicts basic market principles, the price of butter in Azerbaijan continues to rise—even as national reserves have surged and domestic production remains steady.
According to the State Statistics Committee, Azerbaijan produced 13,269.6 tons of butter in the first half of 2025, a 4.3% decrease compared to the same period in 2024. Yet, as of July 1, the country held 153.2 tons of butter in reserve—more than triple last year’s figure.
At the same time, the overall value of food production in Azerbaijan reached 2.63 billion manats during the first six months of the year, reflecting a 12% year-on-year growth.
But economic experts are sounding the alarm. Akif Nasirli, head of the Center for Liberal Economists, questions the apparent breakdown in market logic.
“According to fundamental economic laws, when supply exceeds demand, prices should drop. However, we’re seeing the opposite,” Nasirli told local media. “This suggests that certain commercial entities have imported large volumes of low-cost butter—primarily from abroad—but are deliberately withholding it from the market. By creating an artificial shortage, they can keep prices inflated.”
One of the key concerns is the quality and origin of the butter sold under local labels. Nasirli notes that imported butter, especially from Iran, has a declared customs value of just 8.27 manats per kilogram—yet sells at much higher retail prices.
“Iran was the top exporter of butter to Azerbaijan last year,” Nasirli explained. “Much of this butter arrives in industrial bulk packages of 50 to 100 kilograms. It’s then reprocessed domestically, often diluted with 20–40% palm oil, and repackaged as a local product.”
He further emphasized that Azerbaijan currently lacks industrial-scale production of pure, high-quality butter.
The growing reliance on imported and potentially adulterated butter raises serious concerns for both consumer health and market transparency—especially as the country’s food security policies come under increased public scrutiny.
