Russia's Dairy Market Overview

Dairy Cattle and Milk Production

In 2023, Russia maintained a strong dairy industry with approximately 8.2 million dairy cattle, leading to an impressive milk production volume of about 31 million tons annually. This highlights the efficiency and capability of Russian dairy farms.

Milk Processing and Cheese Production

Each year, Russia processes roughly 21 million tons of milk. A significant portion is allocated to cheese production, which annually generates about 1.1 million tons. The production of milk powder and whey is also substantial, recorded at 1.6 million tons per year, demonstrating advanced processing capabilities.

Key Dairy Enterprises

Major Dairy Plants

• Moscow Dairy Plant
• St. Petersburg Dairy Combine
• Udmurt Dairy Complex
• Krasnodar Milk Processing Plant
• Irkutsk Dairy Plant

Leading Dairy Farms

• Miratorg Agribusiness Holding
• Efko Group
• Rusmolco (Russian Milk Company)
• Eridan Group
• Agrocomplex named after N.I. Tkachev

Export and Import of Dairy Products

In 2023, Russia exported approximately 800,000 tons of dairy products, while imports stood at around 1.2 million tons, indicating a domestic supply-demand imbalance. Additionally, 2,343 tonnes of dairy products were imported, valued at USD 9.7 million.

Significant Events in the Dairy Industry

• Danone's Exit: On March 22, 2024, Danone left the Russian market, causing an estimated loss of €1.2 billion, significantly impacting the industry.
• TH Group's Entry: Vietnamese TH Group plans a $204 million investment in a dairy plant in Russia's Far East.
• Unilever Acquisition Approval: The acquisition of Unilever Rus was approved by the Russian FAS, valued between $340-450 million.
• EkoNiva's Expansion: EkoNiva expanded operations to 70 regions by 2024.
• Butter Imports: An 18% increase in butter imports from Kyrgyzstan, with stable price fluctuations.
• Domestic Consumption: A 6% rise in domestic dairy consumption and a 2.5% increase in raw milk production at the start of 2024 suggest potential shortages.
• Global Trade Engagement: Continued collaborations with Kazakhstan and new imports from the UAE, alongside an extended food embargo until the end of 2026.
• Price Increases: November 2024 saw a 5.04% rise in butter prices.
• Conflict Impact: Ukrainian dairy farms impacted by Russian drone strikes.
• Export Growth: A 20% growth in dairy exports, bringing in revenues of $370 million in the first 11 months of 2024.
• Forecasts: Sovecon reduced 2025 wheat production forecasts.
• Ice Cream Exports: Ice cream exports grew to $55 million by November 2024, increasing by 15%.
• Kumis Consumption: A remarkable 67% increase in kumis consumption in 2024.
• Sberbank Withdrawal: Sberbank exited subsidized agriculture lending programs.
• Bilateral Agricultural Cooperation: Russia enhanced agricultural ties with Iran, and Uruguay entered the Russian market.
• U.S. Assurance: The U.S. offered assistance to restore Russian grain and fertilizer export access globally.

Despite challenges like declining cattle numbers and slow production growth, Russia's dairy market remains resilient and globally active, showing strong export growth and dynamic changes within its cheese industry. The entry of the Vietnamese TH Group marks significant foreign investment, while consumption patterns show both growth and decline in specific dairy products. Notably, plant-based milk is gaining traction, catering to lactose-intolerant consumers and shifting consumer preferences towards eco-friendly options.

Modified: 2025/05/06

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