Tbilisi (GBC) - TBC Capital reports a growing structural imbalance in Georgia’s livestock and dairy sector, highlighting a mismatch between domestic production capacity and market demand. Between 2019 and 2024, milk production remained relatively stable at around 570,000 tons annually, showing only minor year-on-year fluctuations without a sustainable growth trend.

During the same period, milk imports increased significantly by roughly 50%, with the fastest growth observed since 2021. Meanwhile, the national herd of cattle has been steadily declining since 2021, and cow productivity continues to lag behind EU and regional benchmarks. This limits the potential for domestic production growth despite relatively stable output.

As a result, growing domestic demand for both raw milk and higher-value dairy products is increasingly met through imports, including raw milk, milk powder, cheese, and butter. These imports are concentrated among a few supplier countries, predominantly within the European Union.

Georgia’s dairy sector continues to experience steady growth in consumption, particularly for high-value dairy products. Cheese maintains a dominant position in the consumption basket, both in terms of volume and value, reflecting shifting consumer preferences and market trends.