Russia's Dairy Industry in 2023
Production and Processing
In 2023, Russia continues to be a significant player in the global dairy sector, producing approximately 31 million tons of milk annually. Despite a 4.3% decline in the dairy cattle population, the milk processing capabilities remain strong, with around 21 million tons processed each year. This robust processing supports the production of 1.1 million tons of cheese and 1.6 million tons of milk powder and whey. Key enterprises anchoring the Russian dairy sector include the Moscow Dairy Plant, St. Petersburg Dairy Combine, Udmurt Dairy Complex, Krasnodar Milk Processing Plant, and Irkutsk Dairy Plant. Significant contributions to milk production come from prominent farms such as Miratorg Agribusiness Holding, Efko Group, Rusmolco, Eridan Group, and the Agrocomplex named after N.I. Tkachev.
Export and Import Dynamics
In 2023, Russia exported around 800,000 tons of dairy products while importing approximately 1.2 million tons, valued at about USD 9.7 million. Belarus and Kyrgyzstan are the major sources of these imports, with Belarus accounting for 94% of imports. Russia's exports to the UAE have grown 7.7 times, and the country remains a vital supplier to Kazakhstan and Georgia.
Significant Events and Trends
Key developments in the Russian dairy industry include Danone's exit from the Russian market in March 2024 and TH Group's planned $204 million investment in a new dairy plant in the Far East. EkoNiva 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, reflecting 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, but the market shows growth in monetary terms due to rising prices. Rosstat reported that butter prices increased by 34% and milk by 22% in the first seven months of 2025. Technological advancements, such as cow neuro-implants developed by the startup Neiry, are transforming the industry. EkoNiva and Natura Pro have launched 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, although domestic demand fell by 6.7%. Warehouse stocks of butter increased by 83%. The Russian butter market at the beginning of 2026 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. Meanwhile, consumption declined even more significantly—by 5.9%, to 423 thousand tons. The key indicator is the stock dynamics, with butter stocks at processors increasing by 67% to reach 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, amounting to 58.1 thousand tons. The decrease in production was accompanied by a more moderate reduction 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 see food service and ready-to-eat sectors as strategic sales channels. The National Union of Milk Producers states that HoReCa and the ready-to-eat market account for about 10-15% of the total dairy production in Russia. President Vladimir Putin imposed restrictions on Tetra Pak packaging imports from Asia to support domestic manufacturers. Consumer trends indicate that 46% of Russians are willing to pay more for products with "clean" and safe ingredients, driven primarily by health concerns.
Modified: 2026/05/21