Overview of Russia's Dairy Industry
In 2023, Russia emerged as a key participant in the global dairy market, with an annual milk production of approximately 31 million tons. This substantial output is supported by a dairy cattle population of about 16.5 million. However, there is a noted decline in cattle numbers, with a 4.3% year-over-year decrease.
Milk Processing and Production
Russia processes about 21 million tons of milk each year across various facilities. Cheese production is a significant focus, utilizing around 1.1 million tons of milk. Additionally, the production of milk powder and whey is approximately 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 (Russian Milk Company), 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. Russia remains a leading supplier of milk and skimmed milk powder to Central Asia, while Belarus accounted for 79% of Russia’s total butter imports in 2024.
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. Conversely, the Vietnamese TH Group announced 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 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. Consumption also rose by 3.4% in January-February 2025, amounting to 137.2 thousand tons.
Whole Milk Powder Production
Production of whole milk powder 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. Milk and dairy production in Russia continues to grow, with butter production exceeding 83,000 tons in the first quarter of 2025. The Ekoniva Group, the largest dairy holding in Russia and Europe, operates in 13 regions, with a land bank of 632,400 hectares. In 2024, the group’s enterprises produced about 1.35 million tons of raw milk, with sales revenue growing by 29%, reaching 91.1 billion rubles. Russia has suspended the import of dairy products from two Azerbaijani producers. Cheese production in Russia declines in 2025 after years of steady growth. From January to May 2025, Russia recorded a decline in the production of cheese and cheese-based products amid stabilizing demand and oversupply in warehouses. The total output in this category reached 416.4 thousand tons — a 3.3% drop compared to the same period in 2024. From 2020 to 2024, Russia saw steady growth in cheese production, with a surge especially pronounced in 2023–2024, when production surpassed 800 thousand tons, likely driven by increased processing capacity and a push for import substitution. Russian authorities are considering stricter measures against the sale of counterfeit dairy products. Efforts to curb counterfeit dairy are particularly timely amid a decline in dairy consumption in Russia. According to Nielsen, retail sales by volume fell by 1.2% from June 2024 to May 2025.
Modified: 2025/07/23