TBC Capital report shows that Georgia’s dairy sector faces significant productivity challenges. The average milk yield in the country is only 4.7 liters per cow, compared with the European Union average of 22 liters, illustrating low efficiency in domestic production.
The report highlights that local supply is insufficient to meet rising demand, resulting in a sharp increase in milk imports which rose from 7,500 tons in 2019 to 16,000 tons in 2025, primarily sourced from Poland, France, Russia and Belarus. In the first ten months of 2025, Azerbaijan accounted for 24% of imports, followed by Russia (18%) and France (16%). Imports of butter reached 6,800 tons while cheese imports exceeded 33,000 tons, with the EU supplying more than two-thirds of total cheese imports.
TBC Capital notes that Georgia’s dairy sector suffers from a structural imbalance: domestic production has remained roughly stable at 570,000 tons from 2019 to 2024 while imports grew by approximately 50%, particularly after 2021. Cheese dominates consumption both in volume and value and demand for high-value dairy products continues to grow.
