Azerbaijan’s Wheat and Butter Imports Signal Rising Dependence on External Supply

AZE.US

Azerbaijan imported 129,933 tonnes of wheat in January, worth $28.87 million, marking a 50% increase in volume and a 54.4% rise in value compared with the same period last year, according to data cited by economist Natig Jafarli.

The figures highlight the country’s continued reliance on imported food staples despite long-standing policy emphasis on agricultural self-sufficiency. Analysts say the inability to produce sufficient volumes of high-quality commercial wheat domestically remains a structural constraint for the sector.

Trends in the dairy market show a similar pattern. Azerbaijan imported 20,130 tonnes of butter in 2025 valued at $145.31 million. While import volumes declined by 18% year-on-year, the total value increased by 4%, indicating significant price growth.

Iran remained the largest supplier, though shipments fell by roughly 39%. The average price of Iranian butter rose by more than 21% during the year. Imports from New Zealand also declined, while the average price per tonne increased by nearly 20%.

Domestic production weakened in parallel. Azerbaijan produced 26,580 tonnes of butter in 2025, down 8.2% from the previous year, reflecting a broader decline in livestock numbers that has affected milk output and contributed to rising meat and dairy prices.

Economists say the data underscores persistent structural challenges in Azerbaijan’s agricultural sector, where state support and subsidy programs have yet to translate into sustained growth in core food production.