Overview of Russia's Dairy Industry

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

Milk Processing and Production

Russia processes around 21 million tons of milk annually across various facilities. Cheese production is a significant focus, utilizing approximately 1.1 million tons of milk. Additionally, the production of milk powder and whey stands at about 1.6 million tons, reflecting the advanced capabilities of its processing sector.

Key Dairy Enterprises

Major 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 include 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. The value of imports was around USD 9.7 million, with a significant portion coming from Belarus and Kyrgyzstan. Russia remains a leading supplier of milk and skimmed milk powder to Central Asia.

Significant Events and Trends

Key events shaping the market 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. There was an 18% increase in butter imports from Kyrgyzstan, and domestic dairy consumption rose by 6%, with raw milk production increasing by 2.5%.

Geopolitical Impacts

Geopolitical factors have impacted the market, with Russian drone strikes disrupting Ukrainian dairy farms. 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, demonstrating significant growth compared to the same period in 2024.

Packaging Restrictions

President Vladimir Putin has instructed to limit 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. Russia has suspended the import of dairy products from two Azerbaijani producers. 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.

The average price of cattle feed in Russia in June 2025 was 22.4 thousand rubles per ton. This figure is 2.2% lower than in May, but 18.9% higher than in June 2024. Potential to increase dairy export to China remains strong, as Russian milk production currently amounts to about 34 million tons per year. According to an optimistic forecast, with an annual growth of 3%, by the early 2030s, Russia may reach a production volume of 40 million tons.

Modified: 2025/08/13

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