Russia's Dairy Industry in 2023
Russia continues to be a crucial player in the global dairy market, producing approximately 31 million tons of milk each year. This production level is supported by a dairy cattle population of about 16.5 million, despite a 4.3% decline in cattle numbers compared to the previous year.
Production and Processing
Annually, around 21 million tons of milk are processed within Russia. The country's advanced processing capabilities are highlighted by substantial production figures for cheese, which amounts to 1.1 million tons, and milk powder and whey, reaching 1.6 million tons.
Key Dairy Enterprises
Prominent dairy plants include the Moscow Dairy Plant, St. Petersburg Dairy Combine, Udmurt Dairy Complex, Krasnodar Milk Processing Plant, and Irkutsk Dairy Plant. Leading farms consist of Miratorg Agribusiness Holding, Efko Group, Rusmolco, Eridan Group, and the 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. Import values were around USD 9.7 million, with significant imports coming from Belarus and Kyrgyzstan. Belarusian products accounted for a dominant 94% of Russia's dairy imports.
Significant Events and Trends
Key market developments include Danone's exit from Russia in March 2024 and the Vietnamese TH Group's announcement of a $204 million investment in a new Far East dairy plant. EkoNiva expanded operations to 70 regions by 2024. Butter imports from Kyrgyzstan increased by 18%, and domestic dairy consumption rose by 6%, with raw milk production increasing by 2.5%.
Geopolitical Impacts
Russian drone strikes disrupting Ukrainian dairy farms have affected the market. The European Parliament's approval of tariffs on Russian agricultural imports presents challenges. Nonetheless, exports to the UAE increased 7.7 times, and Russia accounts for nearly half of all imports to Kazakhstan.
Yogurt and Whole Milk Powder Market
The yogurt market expanded by 2.5% in early 2025, reaching 202.1 thousand tons, while whole milk powder production increased by 24% to 20.7 thousand tons.
Packaging Restrictions
President Vladimir Putin has imposed limitations on Tetra Pak packaging imports from Asia to protect domestic manufacturers.
Additional Developments
Russia remains a significant buyer of Iranian dairy products and has imposed temporary restrictions on imports from Hungary due to bluetongue virus concerns. EAEU countries, including Russia, provide more effective marketing support for dairy farming, with Russian farmers receiving up to 50–60% reimbursement for expenses.
Investors are driving automation for transparent data, helping track farm data in real-time. Russia's dairy industry is undergoing a technological revolution, with the startup Neiry innovating dairy farming through cow neuro-implants. The industry is experiencing consolidation and structural changes, with large vertically integrated holdings playing a growing role. The sector is driven by digitalization, modernization, and quality control automation.
Regional Import Trends
Ivanovo Oblast has become a leading importer of Belarusian dairy products, ranking in the top ten Russian regions for dairy imports through the Belarusian Universal Commodity Exchange.
Market Dynamics
Retail sales of dairy products in Russia decreased by 2.8% in volume from September 2024 to August 2025. Despite the decline in volume, the market shows growth in monetary terms due to increased dairy product prices. Rosstat reported butter prices rose by 34% and milk by 22% in the first seven months of 2025.
Ice Cream Production
In the first eight months of 2025, the Russian ice cream market showed a slight decline in production volumes, despite several positive developments at the beginning of the year. Production of skimmed milk powder in Russia increased by 12.4%. From January to August 2025, the production of skimmed milk powder grew by 12.4%, reaching 90.3 thousand tons, while consumption decreased by 2.8%, to 87.6 thousand tons.
Yogurt production in Russia increased by 0.4% from January to August 2025 compared to the same period last year, reaching 536.9 thousand tonnes. Meanwhile, the production of fermented dairy products overall (excluding cottage cheese) fell by 1.6%, to 1.87 million tonnes. Yogurt consumption in the country increased by 2% from January to July 2025, reaching 496.2 thousand tonnes. Yogurt stocks in the warehouses of dairy processing enterprises at the beginning of September amounted to 8 thousand tonnes, which is 3% higher than the same period in 2024.
Consumer Preferences
According to a study by Roskachestvo, nearly 46% of Russians are willing to pay extra for products with 'clean' and safe ingredients. The main motivation is health care, cited by 54% of respondents. Organic products have become a part of everyday purchases for most respondents.
Modified: 2025/11/07