AZE.US
Prices for butter have been climbing in Azerbaijan in recent days, with increases reported both in supermarkets and local food markets.
Retailers say the price changes are largely beyond the control of store chains, as suppliers and distributors have raised wholesale prices.
According to sellers, some brands that were previously sold for around 23 manats per kilogram have increased to 23.90 manats, while others have risen from 24.90 to about 25.90 manats.
Consumers say the price increase is noticeable, though butter remains a staple product that many households cannot easily replace. Some shoppers say they are simply buying smaller quantities than before.
Seasonal Supply Pressures
Economists say one of the main reasons behind the increase is seasonal production patterns. During the winter months, livestock productivity typically declines, reducing the supply of raw milk used to produce butter.
At the same time, farmers report higher feed costs, which further increases production expenses and eventually pushes retail prices upward.
Strong Dependence on Imports
Another major factor is Azerbaijan’s dependence on imported butter.
Experts estimate that only about half of domestic demand is covered by local production. Roughly 25,000 tons of butter are produced domestically, while about 27,000 tons are imported to meet market demand.
Azerbaijan primarily imports butter from New Zealand, Belarus, Iran, and Turkey.
Global trends are also playing a role. Since 2020, food-importing countries have faced persistently high logistics and supply costs, which continue to affect retail prices.
Economists say a significant drop in prices is unlikely unless domestic livestock production expands and local dairy output increases.