Overview of Russia's Dairy Industry

In 2023, Russia's dairy sector emerged as a pivotal part of the global market, producing around 31 million tons of milk annually. Supported by a robust dairy cattle population of approximately 8.2 million, Russia has positioned itself as a major contributor to global dairy production.

Milk Processing and Production

Russia processes about 21 million tons of milk annually through a diverse range of facilities. The country places a strong emphasis on cheese production, utilizing around 1.1 million tons of milk for this segment. Furthermore, Russia's production of milk powder and whey is approximately 1.6 million tons, highlighting 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.

Significant Events and Trends

The Russian dairy market has experienced several notable events. In March 2024, Danone exited the Russian market, 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. Additionally, the Russian FAS approved Unilever Rus's acquisition, valued between $340-$450 million.

EkoNiva expanded its operations to 70 regions across Russia by 2024. There was an 18% increase in butter imports from Kyrgyzstan amid changing prices, and domestic dairy consumption rose by 6%, with raw milk production increasing by 2.5%, raising concerns about potential shortages starting in 2024.

Russia's dairy exports saw a 20% increase, generating $370 million in revenue in the first 11 months of 2024. Ice cream exports also grew by 15%, reaching $55 million by November 2024. Kumis consumption experienced a dramatic 67% increase in 2024.

Geopolitical factors have also impacted the market, with Russian drone strikes disrupting Ukrainian dairy farms. Additionally, the European Parliament approved tariffs on all agricultural imports from Russia, set to reach €430 per ton by 2028. Nevertheless, 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.

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.

Modified: 2025/05/18

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