Russia's Dairy Market: A Comprehensive Overview

Dairy Cattle and Milk Production

As of 2023, Russia was home to approximately 8.2 million dairy cattle, producing around 31 million tons of milk annually. This showcases the country's significant dairy farming infrastructure and its capacity to support a growing dairy industry.

Milk Processing and Cheese Production

Russia processes about 21 million tons of milk annually, with cheese production being a major part of this industry, amounting to approximately 1.1 million tons per year. Additionally, the country produces about 1.6 million tons of milk powder and whey each year, demonstrating its diversity in dairy processing activities.

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 about 800,000 tons of dairy products, while imports were approximately 1.2 million tons. This reflects Russia's expanding role in the international dairy market, although it indicates some domestic supply-demand imbalances.

Significant Events in the Dairy Industry

• Danone's Exit: On March 22, 2024, Danone exited the Russian market, incurring an estimated loss of €1.2 billion, reshaping the competitive landscape.
• TH Group's Entry: Vietnamese TH Group plans a $204 million investment in a Russian Far East dairy plant.
• Unilever Acquisition Approval: Russian FAS approved the acquisition of Unilever Rus for about $340-450 million.
• EkoNiva's Expansion: EkoNiva expanded its reach to 70 regions by 2024.
• Butter Imports and Prices: An 18% increase in butter imports from Kyrgyzstan with stable price fluctuations.
• Domestic Consumption: A 6% rise in domestic dairy consumption, yet only a 2.5% increase in raw milk production in early 2024, suggesting potential shortages.
• Global Trade Engagement: Continued strategic collaborations with Kazakhstan and butter imports from the UAE.
• Whey Exports: Kazakhstan remains the largest importer.
• Food Embargo Extension: The embargo is extended until the end of 2026.
• Price Increases: Butter prices increased by 5.04% in November 2024.
• Conflict Impact: Ukrainian dairy farm damage due to Russian drone strikes.
• Export Growth: A 20% rise in dairy exports reached $370 million by the first 11 months of 2024.
• Sovecon Forecast: A reduction in the forecast for 2025 wheat production.
• Ice Cream Exports: Ice cream exports reached $55 million by November 2024, up 15%.
• Kumis Consumption: Rose by 67% in 2024.
• Sberbank Withdrawal: From subsidized agriculture lending programs.
• Bilateral Agricultural Cooperation: Enhanced relations with Iran and increased engagement in the Russian dairy market from Uruguay.

Overall, in 2024, Russia's dairy sector faced challenges with declining cattle numbers and a slow production increase, causing potential shortages and price hikes. Yet, it remains active globally, with significant export growth and ongoing cheese industry expansion amid geopolitical shifts.

Modified: 2025/03/20

---