Dairy Industry Overview in Russia, 2023

In 2023, Russia emerged as a major participant in the global dairy market, producing approximately 31 million tons of milk annually. This output is supported by a dairy cattle population numbering around 16.5 million, despite a year-over-year decline of 4.3% in cattle numbers.

Milk Processing and Production

Russia processes about 21 million tons of milk each year, with a significant portion dedicated to cheese production, utilizing approximately 1.1 million tons of milk. The production of milk powder and whey is also notable, standing at around 1.6 million tons, reflecting the country's advanced processing capabilities.

Key Dairy Enterprises

Prominent dairy plants in Russia include the Moscow Dairy Plant, St. Petersburg Dairy Combine, Udmurt Dairy Complex, Krasnodar Milk Processing Plant, and Irkutsk Dairy Plant. Leading dairy farms comprise Miratorg Agribusiness Holding, Efko Group, Rusmolco, Eridan Group, and Agrocomplex named after N.I. Tkachev.

Export and Import Dynamics

In 2023, Russia exported approximately 800,000 tons of dairy products while importing about 1.2 million tons, indicating a slight imbalance between domestic supply and demand. Import values were around USD 9.7 million, with significant imports from Belarus and Kyrgyzstan.

Significant Events and Trends

Key market events include Danone's exit from Russia in March 2024, resulting in an estimated €1.2 billion loss, and the Vietnamese TH Group's announcement of a $204 million investment in a new dairy plant in Russia's Far East. EkoNiva expanded its operations to 70 regions by 2024. Additionally, butter imports from Kyrgyzstan increased by 18%, and domestic dairy consumption rose by 6%, with raw milk production increasing by 2.5%.

Geopolitical Impacts

Geopolitical factors, such as Russian drone strikes disrupting Ukrainian dairy farms, have influenced the market. The European Parliament approved tariffs on all agricultural imports from Russia, set to reach €430 per ton by 2028. Despite these challenges, Russia's dairy exports to the UAE increased 7.7 times, and the country accounts for nearly half of all imports to Kazakhstan.

Yogurt and Whole Milk Powder Market

The yogurt market in Russia is expanding, with production increasing by 2.5% in the first quarter of 2025, reaching 202.1 thousand tons. Whole milk powder production increased by 24% in the first quarter of 2025, reaching 20.7 thousand tons.

Packaging Restrictions

President Vladimir Putin has instructed limitations on the import of Tetra Pak packaging from Asia to protect Russian manufacturers.

Conclusion

Despite challenges such as declining cattle numbers and slow production growth, Russia remains a crucial player in the global dairy trade. Noteworthy developments, such as the TH Group's investment, demonstrate substantial foreign interest, while shifting consumer trends indicate a rise in eco-friendly and plant-based dairy alternatives. 85% of dairy products produced in Russia are exported, primarily to post-Soviet countries. Cheese production in Russia declines in 2025 after years of steady growth. The Russian ice cream market faced a slowdown in dynamics, yet exports increased by 40% in the first half of 2025. UHT milk production in Russia may increase by nearly 5% year-on-year by the end of 2025, potentially reaching 1.65 million tons, driven by demand from cafés and catering establishments. Russia was a major buyer of Iranian dairy products.

Modified: 2025/09/18

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