Russia's Dairy Industry in 2023

Russia continues to play a crucial role in the global dairy market, with an impressive annual milk production of approximately 31 million tons. This production 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

Russia processes about 21 million tons of milk annually, demonstrating advanced processing capabilities. The country produces significant amounts of dairy products, including 1.1 million tons of cheese and 1.6 million tons of milk powder and whey. Key enterprises such as the Moscow Dairy Plant, St. Petersburg Dairy Combine, Udmurt Dairy Complex, Krasnodar Milk Processing Plant, and Irkutsk Dairy Plant are central to these operations. Leading farms include 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, with imports valued at around USD 9.7 million. Belarus and Kyrgyzstan are significant sources of imports, with Belarusian products accounting for 94% of Russia's dairy imports.

Significant Events and Trends

Key developments in the market 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%. Russian drone strikes disrupting Ukrainian dairy farms have affected the market. The European Parliament's approval of tariffs on Russian agricultural imports presents challenges. However, 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, offer effective marketing support for dairy farming, with Russian farmers receiving up to 50-60% reimbursement for expenses. Technological advancements are transforming the industry, with innovations such as cow neuro-implants by the startup Neiry. The sector is experiencing consolidation and 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 this, 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. The Russian ice cream market showed a slight decline in production volumes during the same period.

Consumer Preferences

A study by Roskachestvo revealed that nearly 46% of Russians are willing to pay extra for products with "clean" and safe ingredients, with health care being the main motivation for 54% of respondents. Organic products have become commonplace in everyday purchases. Exports of cheese and curd increased by 17% in January-August 2025, amounting to over 21 thousand tons worth around $110 million.

Condensed Milk Exports

Russian condensed milk exports increased by 21% in the first nine months of 2025, reaching 5.8 thousand tons valued at approximately 11.8 million USD.

Ready-to-Eat Food Market

The ready-to-eat food market in Russia is growing rapidly, with retail chains' share expected to increase from 25% to 40% by 2030. The market is growing at a rate 4-5 times faster than the global average.

Ice Cream Production

A cold summer in 2025 led to a 7% decrease in ice cream sales, with production decreasing to 485 thousand tons from January to September 2025. Ice cream production from January to November 2025 decreased to 485 thousand tons, which is lower than the figures for the same period in 2024. At the same time, domestic demand shows a positive trend. By the end of January-October 2025, ice cream consumption increased by 4.3% year-on-year, reaching 520.1 thousand tons. The reduction in output was accompanied by a decrease in inventory levels. As of early December 2025, ice cream stocks held by manufacturers amounted to about 36 thousand tons, which is 24% less than a year earlier.

Cheese and Cottage Cheese Exports

Approximately 27,000 tons of cheese and cottage cheese were exported, with export values increasing by 13% to $139 million in the first ten months of 2025.

Livestock Industry Challenges

The livestock industry in Russia faces challenges such as production costs and staff shortages, with the past year marked by stagnation.

Innovations and Strategic Focus

EkoNiva and Natura Pro launched products specifically for coffee drinks, while Molvest focuses on high-value dairy products to boost exports. Russia remains a significant supplier of cheese and curd to Kyrgyzstan and is a primary destination for Kazakhstan's ice cream exports.

Modified: 2026/02/09

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