Azerbaijan.US
Azerbaijan has increased the customs duty on imported butter from 5% to 15%, a move expected to push retail prices higher in the domestic market.
According to economist Kamran Hajiyev, imported butter currently accounts for around 70% of total consumption in Azerbaijan. The higher duty is likely to further increase prices for a product that is already among the most expensive items in the food basket.
“If a kilogram of butter costs about 20 manats today, prices could rise to around 23 manats after the duty increase,” Hajiyev said.
New Zealand remains the dominant supplier, holding roughly 75% of the import market. Butter is also imported from Iran, Belarus, other CIS countries, and several European states, including Germany, France, and Belgium, although their combined share does not exceed 1-2%.
Officials and experts say the primary goal of the higher duty is to stimulate domestic production and reduce dependence on imports. In 2017, Azerbaijan lowered the butter import duty from 15% to 5% as a temporary market regulation measure, but that policy was never intended to be permanent.
Economists argue that the new tariff could encourage local production and attract investment into the sector. At the same time, rising prices may influence consumer behavior, with buyers increasingly turning to more affordable locally produced alternatives.
