Russia May Tighten Penalties for Replacing Dairy Fat with Vegetable Alternatives
Among the proposals under discussion:
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Introduction of turnover-based fines for manufacturers that violate regulations
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Destruction of counterfeit goods at the owner’s expense
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Stricter labeling requirements for products containing non-dairy fats
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Removal of preferential VAT treatment for goods made with dairy fat substitutes
According to the National Union of Milk Producers (Soyuzmoloko), the share of counterfeit dairy products reached around 5% in 2024. After years of decline, this figure is once again on the rise. Ksenia Khalimonova, executive director of the Anti-Counterfeit Association, noted that while monitoring is carried out via the "Mercury" and "Chestny ZNAK" traceability systems, some manufacturers continue to find workarounds.
Stefan Duerr, President of the EkoNiva Group and a participant in the meeting, advocated for industry self-regulation.
The shortage of dairy fat stems from growing demand that outpaces production capacity. Dmitry Leonov, Deputy Chairman of the Rusprodsoyuz Association, explained that the cost of producing a vegetable-based dairy analogue can be up to four times lower, making substitution financially appealing. Legally, the use of vegetable fat is not considered a violation if clearly indicated on the product packaging.
Legal expert Anna Barabash emphasized that high-value dairy products — such as cheese, butter, cottage cheese, and sour cream — are especially vulnerable. Violations are typically identified through lab testing, after which confiscation and disposal at the supplier’s expense may follow.
Experts believe that turnover-based fines ranging from 1% to 10% of revenue could be a more effective deterrent than fixed penalties, which are often seen as routine business costs.
Efforts to curb counterfeit dairy are particularly timely amid a decline in dairy consumption in Russia. According to Nielsen, retail sales by volume fell by 1.2% from June 2024 to May 2025.
