Azerbaijan.US
Butter prices in Azerbaijan may increase in the coming months after the government raised import duties from 5% to 15%, ending a preferential regime that had been in place for nearly eight years.
Butter is a staple product in Azerbaijan’s consumer basket, making any price movement highly sensitive for households. Consumers say prices have already changed several times over the past year, with gradual but noticeable increases.
Retailers report no sharp price hikes so far, but market analysts warn that the full effect of the new customs duty may take time to reach store shelves. Currently, both locally produced and imported butter are available on the market, with products arriving from Germany, Russia, Ukraine, Iran and other countries.
Local butter is typically priced between 16 and 24 manats, while imported brands range from 24 to 36 manats, depending on origin, quality and composition.
According to experts, the primary goal of the higher import duty is to support domestic production and regulate competition in the market. However, they estimate that butter prices could rise by 15-17% in 2026 as a result of the policy change.
In the short term, consumers may face higher prices. In the medium to long term, authorities hope the measure will stimulate local dairy production, improve income stability for farmers and reduce reliance on imports.
At the same time, specialists point to structural challenges. Azerbaijan’s cattle population has been declining, and issues related to pasture availability and feed supply remain unresolved. While higher prices could make dairy farming more attractive economically, production capacity cannot expand quickly without addressing these constraints.
Official data show that Azerbaijan’s annual demand for butter stands at approximately 38,000-40,000 tons. The country currently relies heavily on imports, mainly from New Zealand, Belarus and Ukraine.
