Russia's Dairy Industry in 2023

Production and Processing

With an annual production of approximately 31 million tons of milk, Russia remains a significant player in the global dairy market. The dairy cattle population stands at about 16.5 million, despite a 4.3% decline compared to the previous year. Russia's advanced processing capabilities allow for the processing of around 21 million tons of milk each year, which results in the production of 1.1 million tons of cheese and 1.6 million tons of milk powder and whey. Key enterprises in this sector include the Moscow Dairy Plant, St. Petersburg Dairy Combine, Udmurt Dairy Complex, Krasnodar Milk Processing Plant, and Irkutsk Dairy Plant. Prominent farms contributing to production include Miratorg Agribusiness Holding, Efko Group, Rusmolco, Eridan Group, and the Agrocomplex named after N.I. Tkachev.

Export and Import Dynamics

In 2023, Russia exported approximately 800,000 tons of dairy products and imported about 1.2 million tons, with imports valued at around USD 9.7 million. Belarus and Kyrgyzstan are major sources of these imports, with Belarusian products accounting for 94% of Russia's dairy imports.

Significant Events and Trends

Key developments include Danone's exit from the Russian market in March 2024 and the Vietnamese 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. Butter imports from Kyrgyzstan increased by 18%, while domestic dairy consumption rose by 6%, with raw milk production increasing by 2.5%. Russian drone strikes disrupted Ukrainian dairy farms, impacting the market. The European Parliament's approval of tariffs on Russian agricultural imports presents challenges, although exports to the UAE have increased 7.7 times. Russia accounts for nearly half of all dairy imports to Kazakhstan.

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 by 24%, reaching 20.7 thousand tons.

Packaging Restrictions

President Vladimir Putin imposed limitations on Tetra Pak packaging imports from Asia to protect domestic manufacturers.

Additional Developments

Russia remains a significant buyer of Iranian dairy products and has imposed temporary restrictions on imports from Hungary due to bluetongue virus concerns. EAEU countries, including Russia, offer effective marketing support for dairy farming, with Russian farmers receiving up to 50-60% reimbursement for expenses. Technological advancements, such as cow neuro-implants by the startup Neiry, are transforming the industry. The sector is experiencing consolidation driven by digitalization, modernization, and quality control automation.

Regional Import Trends

Ivanovo Oblast has become a leading importer of Belarusian dairy products, ranking among the top ten Russian regions for dairy imports through the Belarusian Universal Commodity Exchange.

Market Dynamics

Retail sales of dairy products in Russia decreased by 2.8% in volume from September 2024 to August 2025. Despite this, the market shows growth in monetary terms due to increased dairy product prices. Rosstat reported butter prices rose by 34% and milk by 22% in the first seven months of 2025. The Russian ice cream market showed a slight decline in production volumes during the same period.

Consumer Preferences

A study by Roskachestvo revealed that nearly 46% of Russians are willing to pay extra for products with "clean" and safe ingredients, with health care being the main motivation for 54% of respondents. Organic products have become commonplace in everyday purchases.

Condensed Milk Exports

Russian condensed milk exports increased by 21% in the first nine months of 2025, reaching 5.8 thousand tons valued at approximately 11.8 million USD.

Ready-to-Eat Food Market

The ready-to-eat food market in Russia is growing rapidly, with retail chains' share expected to increase from 25% to 40% by 2030. The market is growing at a rate 4-5 times faster than the global average.

Ice Cream Production

A cold summer in 2025 led to a 7% decrease in ice cream sales, with production decreasing to 485 thousand tons from January to September 2025. Ice cream production from January to November 2025 decreased to 485 thousand tons, which is lower than the figures for the same period in 2024. At the same time, domestic demand shows a positive trend. By the end of January-October 2025, ice cream consumption increased by 4.3% year-on-year, reaching 520.1 thousand tons. The reduction in output was accompanied by a decrease in inventory levels. As of early December 2025, ice cream stocks held by manufacturers amounted to about 36 thousand tons, which is 24% less than a year earlier.

Cheese and Cottage Cheese Exports

Approximately 27,000 tons of cheese and cottage cheese were exported, with export values increasing by 13% to $139 million in the first ten months of 2025.

Livestock Industry Challenges

The livestock industry in Russia faces challenges such as production costs and staff shortages, with the past year marked by stagnation.

Innovations and Strategic Focus

EkoNiva and Natura Pro launched products specifically for coffee drinks, while Molvest focuses on high-value dairy products to boost exports. Russia remains a significant supplier of cheese and curd to Kyrgyzstan and is a primary destination for Kazakhstan's ice cream exports. Overseas buyer delegations from Russia will attend, strengthening cross-border trade and global expansion opportunities. Russia is the second largest supplier of milk and cream to Georgia, supplying 3.2 thousand tons in 2025 valued at $4 million. Russia was the main supplier of livestock and poultry to Kazakhstan, supplying 6.5 million heads of poultry and being a main source for cattle imports.

Milk Production

Milk production in Russia increased by 2.5%, reaching 26.7 million tons. Preliminary estimates indicate that from January to December 2025, milk production in Russia rose by 2.5% compared to the same period in 2024, totaling 26.7 million tons. The primary contribution to this growth was from agricultural organizations, where production increased by 4.9%, reaching 20.8 million tons. A structural gap between the reduction in livestock numbers and an increase in milk production is intensifying in Russian animal husbandry. As of January 2026, the number of cattle in agricultural organizations decreased by 0.6%, while milk production increased by 3.6%, according to Rosstat data. Growth in dairy consumption amid record production in Russia. In 2025, Russia reached a historical peak in raw milk production — 34.2 million tons. The expansion of the raw material base allows for full utilization of dairy processing enterprises. By 2030, it is planned to increase raw milk production to 38.5 million tons.

Butter Production and Consumption

Butter production in Russia increased despite a decline in consumption. Preliminary data indicates that butter production in Russia increased by 2.1% from January to December 2025 compared to the same period in 2024, reaching 340.9 thousand tons. Meanwhile, domestic demand for butter decreased by 6.7%, amounting to 383.5 thousand tons. Warehouse stocks of the product increased significantly by 83%, reaching 30.5 thousand tons as of early January 2026.

Export Prices

Export prices for the Russian market remain unchanged. The minimum price for milk and cream with a fat content up to 1.5% is 235 Russian rubles per kg, and for dry dairy products, it is 170 rubles per kg. In the Russian market, there is an increasing discussion about the growing presence of Belarusian dairy products. Russian processors note that Belarusian producers are winning in terms of price: the cost difference for raw milk reaches about 20%.

Regional Import Restrictions

The authorities of Tatarstan have decided to restrict the import of livestock and feed from other Russian regions. The measures are aimed at preventing the introduction of infectious disease pathogens into Tatarstan and enhancing the biological security of farms.

Strategic Opportunities

Russia has the potential to fill the food supply volumes previously provided by Iran to Central Asian countries. Russian producers can replace the supplies that were previously provided by Iran, particularly important for countries like Tajikistan, Kyrgyzstan, and Turkmenistan.

Modified: 2026/03/22

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