Russia's Dairy Market Overview

As of 2023, Russia has solidified its position as a significant contributor to the global dairy industry, boasting a production capacity of approximately 31 million tons of milk annually. This is supported by a substantial dairy cattle population of around 8.2 million.

Milk Processing and Production

Russia processes about 21 million tons of milk each year across various facilities. The country emphasizes cheese production, utilizing approximately 1.1 million tons of milk for this segment. Additionally, the production of milk powder and whey amounts to around 1.6 million tons, showcasing 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 importing around 1.2 million tons, indicating a slight domestic supply-demand imbalance. The imports were valued at approximately USD 9.7 million.

Significant Events in the Dairy Industry

Danone's Exit: On March 22, 2024, Danone's departure resulted in an estimated €1.2 billion loss.
TH Group's Entry: The Vietnamese TH Group announced a $204 million investment in a new dairy plant in Russia's Far East.
Unilever Acquisition Approval: The Russian FAS approved the acquisition of Unilever Rus, valued between $340-$450 million.
EkoNiva's Expansion: By 2024, EkoNiva expanded its operating regions to 70 in Russia.
Butter Imports: An 18% increase in butter imports from Kyrgyzstan amidst price changes.
Domestic Consumption Rise: A 6% rise in domestic dairy consumption and a 2.5% rise in raw milk production raised concerns about potential shortages starting in 2024.
Global Trade Engagement: Collaborations with Kazakhstan, new import agreements with UAE, and a food embargo extension till the end of 2026.
Price Increases: November 2024 witnessed a 5.04% butter price increase.
Conflict Impact: Russian drone strikes disrupted Ukrainian dairy farms.
Export Growth: Dairy exports increased by 20%, generating $370 million in revenue in the first 11 months of 2024.
Ice Cream Exports: A 15% growth led to $55 million in exports by November 2024.
Kumis Consumption Boom: Kumis consumption saw a dramatic 67% increase in 2024.
Sberbank Withdrawal: Sberbank ended participation in subsidized agricultural lending programs.
Bilateral Agricultural Cooperation: Strengthening ties with Iran and Uruguay's entry into the Russian market, amid U.S. support for restoring Russia's grain and fertilizer export access globally.

Despite challenges such as declining cattle numbers and slow production growth, Russia's dairy market remains dynamic and responsive to both global and domestic demands. Noteworthy developments, such as the Vietnamese TH Group's investment, demonstrate substantial foreign interest, while shifting consumer trends indicate a rise in eco-friendly and plant-based dairy alternatives. Russia maintains its crucial position in the global dairy trade, notably as the primary destination for Uruguayan butter.

Market milk production in Russia increased by 2.6% in the first quarter of 2025, and new agreements are creating unique competitive conditions for Russian producers. Additionally, Russian dairy exports to the UAE increased 7.7 times. Russia accounts for nearly half of all imports to Kazakhstan, with its share in total imports around 48% ($650.1 million, up 13.2% year-on-year). China's share in Russian exports has doubled over the past five years. The European Parliament has approved the introduction of tariffs on all agricultural imports from Russia. These tariffs are expected to increase to €430 per ton by 2028.

The yogurt market in Russia is showing growth in production and consumption. According to preliminary data, yogurt production in Russia in the first quarter of 2025 increased by 2.5% compared to the same period last year, reaching 202.1 thousand tons. Yogurt consumption also showed positive dynamics: in January-February 2025, domestic consumption increased by 3.4% and reached 137.2 thousand tons.

Vladimir Putin has instructed to limit the import of Tetra Pak packaging from Asia. The President of Russia, Vladimir Putin, has instructed to develop a mechanism to restrict the supply of Tetra Pak packaging materials from Asian countries in order to protect the interests of Russian manufacturers.

Modified: 2025/05/18