The purpose of the research: the main goal of the study is to identify opportunities for the development of milk production and processing, to determine the strategic role of livestock in food security.

The methodology of the research: the study is based on research methods such as comparative analysis, statistical analysis, observations, and logical generalization.

The practical importance of the research: the article analyzes the current state of milk production and processing in Azerbaijan, presents data and recommendations on development prospects.

The results of the research: to increase competitiveness and efficiency in the non-oil sector of the country, as well as in connection with ensuring the demand of the population through local products, the development of livestock and processing enterprises is shown as a priority.

The originality and scientific novelty of research: well-founded and some specific suggestions are given that clusters can be more effective in the development of milk production and processing. The practical significance of the study is reflected in proposals and recommendations that are important for the full provision of dairy products to the population, improving competitiveness, reducing costs, and developing livestock production in the country.

Keywords: milk, milk processing, import, breeding, self-sufficiency, leasing, animal husbandry.