Overview of Russia's Dairy Industry in 2023
Russia continues to be a crucial player in the global dairy market, producing around 31 million tons of milk each year. This production level is supported by a dairy cattle population of approximately 16.5 million, despite a 4.3% decline in cattle numbers compared to the previous year.
Production and Processing
Annually, about 21 million tons of milk are processed in Russia, with significant portions dedicated to cheese production (1.1 million tons) and milk powder and whey (1.6 million tons). The country's advanced processing capabilities are evident in these figures.
Key Dairy Enterprises
Prominent dairy plants include the Moscow Dairy Plant, St. Petersburg Dairy Combine, Udmurt Dairy Complex, Krasnodar Milk Processing Plant, and Irkutsk Dairy Plant. Leading farms are 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 while importing about 1.2 million tons. Import values were around USD 9.7 million, with significant imports coming from Belarus and Kyrgyzstan. Belarusian products account for a dominant 94% of Russia's dairy imports.
Significant Events and Trends
Key market developments include Danone's exit from Russia in March 2024 and the Vietnamese TH Group's announcement of a $204 million investment in a new Far East dairy plant. EkoNiva expanded operations to 70 regions by 2024. Butter imports from Kyrgyzstan increased by 18%, and domestic dairy consumption rose by 6%, with raw milk production increasing by 2.5%.
Geopolitical Impacts
Russian drone strikes disrupting Ukrainian dairy farms have affected the market. The European Parliament's approval of tariffs on Russian agricultural imports presents challenges. Nonetheless, exports to the UAE increased 7.7 times, and Russia accounts for nearly half of all imports to Kazakhstan.
Yogurt and Whole Milk Powder Market
The yogurt market expanded by 2.5% in early 2025, reaching 202.1 thousand tons, while whole milk powder production increased by 24% to 20.7 thousand tons.
Packaging Restrictions
President Vladimir Putin has imposed limitations on Tetra Pak packaging imports from Asia to protect domestic manufacturers.
Conclusion
Despite challenges such as declining cattle numbers and slow production growth, Russia remains a crucial player in global dairy trade. Developments like the TH Group investment show foreign interest, while consumer trends shift towards eco-friendly and plant-based alternatives. About 85% of Russian dairy products are exported, mainly to post-Soviet countries. Cheese production is expected to decline in 2025 after years of growth. UHT milk production may increase by nearly 5% by the end of 2025, driven by café and catering demand.
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, provide more effective marketing support for dairy farming, with Russian farmers receiving up to 50–60% reimbursement for expenses compared to lower support in Kazakhstan.
Investors are driving automation for transparent data, helping track farm data in real-time. Russia's dairy industry is undergoing a technological revolution, with the startup Neiry innovating dairy farming through cow neuro-implants. The industry is experiencing consolidation and structural changes, with large vertically integrated holdings playing a growing role. The sector is driven by digitalization, modernization, and quality control automation.
Ivanovo Oblast has become a leading importer of Belarusian dairy products, ranking in the top ten Russian regions for dairy imports through the Belarusian Universal Commodity Exchange.
Retail sales of dairy products in Russia decreased by 2.8% in volume from September 2024 to August 2025. The decline in sales has accelerated compared to May, when the reduction was only 1.2%. Despite the decline in volume, 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.
Modified: 2025/10/24