Russia's Dairy Industry in 2023

Russia continues to be a major force in the global dairy market, with an annual milk production of approximately 31 million tons. Despite a 4.3% decrease in the dairy cattle population, the country has maintained substantial processing capabilities, handling around 21 million tons of milk annually. This processing capacity supports the production of 1.1 million tons of cheese and 1.6 million tons of milk powder and whey.

Production and Processing

Key enterprises in the Russian dairy sector include the Moscow Dairy Plant, St. Petersburg Dairy Combine, Udmurt Dairy Complex, Krasnodar Milk Processing Plant, and Irkutsk Dairy Plant. Prominent farms such as Miratorg Agribusiness Holding, Efko Group, Rusmolco, Eridan Group, and the Agrocomplex named after N.I. Tkachev play significant roles in milk production.

Export and Import Dynamics

In 2023, Russia exported around 800,000 tons of dairy products while importing approximately 1.2 million tons, with the imports valued at about USD 9.7 million. Belarus and Kyrgyzstan are the primary sources of these imports, with Belarus accounting for 94% of them.

Significant Events and Trends

Noteworthy developments include Danone's exit from the Russian market in March 2024 and TH Group's announcement of a $204 million investment in a new dairy plant in the Far East. EkoNiva expanded its operations to 70 regions by 2024. Increases in butter imports from Kyrgyzstan by 18% and a 6% rise in domestic dairy consumption reflect growing market demand. Meanwhile, raw milk production increased by 2.5%.

International trade dynamics have been affected by Russian drone strikes on Ukrainian dairy farms and the European Parliament's approval of tariffs on Russian agricultural imports. However, Russia's exports to the UAE have grown 7.7 times, and the country remains a vital supplier to Kazakhstan and Georgia.

Yogurt and Whole Milk Powder Market

The yogurt market expanded by 2.5% in early 2025, reaching 202.1 thousand tons. Whole milk powder production increased significantly by 24%, reaching 20.7 thousand tons.

Packaging and Consumer Preferences

President Vladimir Putin imposed restrictions on Tetra Pak packaging imports from Asia to support domestic manufacturers. Consumer trends indicate that 46% of Russians are willing to pay more for products with "clean" and safe ingredients, driven primarily by health concerns.

Market Dynamics

Retail sales of dairy products saw a 2.8% decline in volume from September 2024 to August 2025, but the market shows growth in monetary terms due to rising prices. Rosstat reported butter prices increased by 34% and milk by 22% in the first seven months of 2025.

Livestock Industry Challenges

The Russian livestock industry faces challenges, including rising production costs and staff shortages, contributing to stagnation in the past year.

Innovations and Strategic Focus

Technological advancements, such as cow neuro-implants developed by the startup Neiry, are transforming the industry. EkoNiva and Natura Pro have launched products tailored for coffee drinks, while Molvest focuses on high-value dairy products to enhance exports.

Butter Production and Consumption

Butter production in Russia rose by 2.1% in 2025, reaching 340.9 thousand tons, although domestic demand fell by 6.7%. Warehouse stocks of butter increased by 83%.

Strategic Opportunities

Russia holds potential to replace Iranian food supply volumes to Central Asian countries, particularly Tajikistan, Kyrgyzstan, and Turkmenistan. The country's agriculture sector, despite increased production, faced deteriorating financial results, missing out on over 100 billion rubles in profit by the end of 2025.

Russian farmers have appealed to the Ministry of Industry and Trade regarding the mandatory labeling of dairy products, which has led to increased costs and farm closures.

Modified: 2026/04/12

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