Russia's Dairy Industry in 2023
Production and Processing
Russia continues to be a major force in the global dairy sector, producing around 31 million tons of milk each year. Despite a 4.3% decline in the dairy cattle population, Russia maintains robust milk processing capabilities, handling approximately 21 million tons annually. This supports the production of 1.1 million tons of cheese and 1.6 million tons of milk powder and whey. Key enterprises include the Moscow Dairy Plant, St. Petersburg Dairy Combine, Udmurt Dairy Complex, Krasnodar Milk Processing Plant, and Irkutsk Dairy Plant. Leading 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 approximately 800,000 tons of dairy products while importing around 1.2 million tons, valued at about USD 9.7 million. Belarus and Kyrgyzstan are major sources of imports, with Belarus accounting for 94% of these imports. Export growth is notable, with shipments to the UAE increasing 7.7 times, and Russia remains a critical supplier to Kazakhstan and Georgia.
Significant Events and Trends
Significant developments in the industry include Danone's exit from the Russian market in March 2024 and TH Group's planned USD 204 million investment in a new dairy plant in the Far East. EkoNiva has expanded its operations to 70 regions by 2024. There is an 18% increase in butter imports from Kyrgyzstan and a 6% rise in domestic dairy consumption, indicating growing market demand. Raw milk production has increased by 2.5%.
Market Dynamics
Retail sales of dairy products saw a 2.8% decline in volume from September 2024 to August 2025, although the market grew in monetary terms due to rising prices. Rosstat reported a 34% increase in butter prices and a 22% increase in milk prices in the first seven months of 2025. Technological advancements, such as cow neuro-implants developed by startup Neiry, are transforming the industry. EkoNiva and Natura Pro have introduced 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, though domestic demand fell by 6.7%. Warehouse stocks of butter increased by 83%. At the start of 2026, the Russian butter market shows a growing imbalance between production, consumption, and stock levels. In January-February 2026, butter production decreased by 2.7% year-on-year to 51.1 thousand tons, while consumption declined by 5.9%, to 423 thousand tons. Butter stocks at processors increased by 67%, reaching 28.6 thousand tons.
Ice Cream Production and Exports
In January-February 2026, ice cream production in Russia decreased by 17.1% compared to the same period last year, totaling 58.1 thousand tons. The reduction in production was accompanied by a more moderate decline in consumption. Russian ice cream exports to China in the first quarter of 2026 showed a sharp decline, decreasing by 27 times compared to the same period last year.
Innovations and Strategic Focus
Dairy producers are increasingly viewing food service and ready-to-eat sectors as strategic sales channels. The National Union of Milk Producers notes that HoReCa and the ready-to-eat market account for about 10-15% of the total dairy production in Russia. President Vladimir Putin has imposed restrictions on Tetra Pak packaging imports from Asia to support domestic manufacturers. Consumer trends show that 46% of Russians are willing to pay more for products with "clean" and safe ingredients, driven by health concerns. Sanitary concerns related to residues in dairy products have been cited by Russian authorities. Russia remains a significant market for Conaprole, being the second-largest destination for its butter exports in 2025. Additionally, Russia is a leading global producer of key agricultural inputs such as urea, potash, and phosphates, which could impact the international fertilizer market amid geopolitical tensions. Arla's entry into the Russian market through DMK's facilities, and DMK continues to operate a fully functional cheese plant in the Voronezh region, raising questions about Arla's future strategy concerning these operations.
Modified: 2026/06/13