Overview of Russia's Dairy Industry in 2023
In 2023, Russia emerged as a major participant in the global dairy market, producing approximately 31 million tons of milk annually. This production is supported by a dairy cattle population of about 16.5 million, despite a 4.3% year-over-year decline in cattle numbers.
Milk Processing and Production
Russia processes around 21 million tons of milk annually. Cheese production is a significant focus, with about 1.1 million tons of milk used for this purpose. The production of milk powder and whey stands at approximately 1.6 million tons, indicating advanced processing capabilities.
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 comprise 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, highlighting a slight imbalance between domestic supply and demand. Import values were around USD 9.7 million, with significant imports from Belarus and Kyrgyzstan.
Significant Events and Trends
Notable market events 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. Additionally, 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, such as Russian drone strikes disrupting Ukrainian dairy farms, have affected the market. 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.
Packaging Restrictions
President Vladimir Putin has instructed limitations on 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. 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, 2.2% lower than in May but 18.9% higher than in June 2024. There is potential to increase dairy export to China, as Russian milk production currently amounts to about 34 million tons per year, with an optimistic forecast of reaching 40 million tons by the early 2030s.
Russia ranked fourth among the largest buyers of South Korean ice cream. In July of this year, Russian companies showed significant growth in ice cream imports from South Korea, doubling both the supply volumes and their value compared to last year's figures. From January to July 2025, the total volume of ice cream imported from South Korea to Russia was 1.6 thousand tons, totaling 4.9 million USD. Russia ranked 10th among all ice cream suppliers to China by the end of July. Despite a decrease in July, the total cumulative deliveries from January to July were $2.1 million, a 1% increase from the previous year.
Russia became the world's leading producer of sunflower meal in 2024. In 2024, Russia reached a volume of 7.9 million tons of sunflower meal. Over the past decade, production increased by 120%, and exports grew by 115%, reaching 2.8 million tons. Russia also ranks fifth among global producers of canola meal and eighth in soybean meal production. Sales of condensed dairy products in Russia fell by 8% from 2020 to 2024. The dynamics of the Russian condensed dairy products market were uneven, with surges in demand in 2020 and 2022, a 1% sales growth in 2023, and a 6% drop in 2024. Despite the decline in retail sales, condensed milk and cream remain in demand among Russian confectionery manufacturers.
The Russian ice cream market faced challenges due to unfavorable weather conditions. In Russia, ice cream consumption for the first half of the year fell by 4.1% year on year, to 326,000 tons. The demand for fruit ice increased by 7.2% compared to the same period last year.
Modified: 2025/09/03