Russia's Dairy Industry in 2023
Russia continues to assert its position as a major player in the global dairy sector, producing approximately 31 million tons of milk annually. Despite a 4.3% decline in the dairy cattle population, Russia's milk processing capabilities remain substantial, with around 21 million tons processed each year. This supports the production of 1.1 million tons of cheese and 1.6 million tons of milk powder and whey.
Production and Processing
Key enterprises in the Russian dairy sector include the Moscow Dairy Plant, St. Petersburg Dairy Combine, Udmurt Dairy Complex, Krasnodar Milk Processing Plant, and Irkutsk Dairy Plant. Prominent farms such as Miratorg Agribusiness Holding, Efko Group, Rusmolco, Eridan Group, and the Agrocomplex named after N.I. Tkachev play significant roles in milk production.
Export and Import Dynamics
In 2023, Russia exported around 800,000 tons of dairy products while importing approximately 1.2 million tons, valued at about USD 9.7 million. Belarus and Kyrgyzstan are the primary sources of these imports, with Belarus accounting for 94% of them.
Significant Events and Trends
Noteworthy developments include Danone's exit from the Russian market in March 2024 and TH Group's announcement of a $204 million investment in a new dairy plant in the Far East. EkoNiva expanded its operations to 70 regions by 2024. Increases in butter imports from Kyrgyzstan by 18% and a 6% rise in domestic dairy consumption reflect growing market demand. Meanwhile, raw milk production increased by 2.5%.
International trade dynamics have been affected by Russian drone strikes on Ukrainian dairy farms and the European Parliament's approval of tariffs on Russian agricultural imports. However, Russia's exports to the UAE have grown 7.7 times, and the country remains a vital supplier to Kazakhstan and Georgia.
Yogurt and Whole Milk Powder Market
The yogurt market expanded by 2.5% in early 2025, reaching 202.1 thousand tons. Whole milk powder production increased significantly by 24%, reaching 20.7 thousand tons.
Packaging and Consumer Preferences
President Vladimir Putin imposed restrictions on Tetra Pak packaging imports from Asia to support domestic manufacturers. Consumer trends indicate that 46% of Russians are willing to pay more for products with "clean" and safe ingredients, driven primarily by health concerns.
Market Dynamics
Retail sales of dairy products saw a 2.8% decline in volume from September 2024 to August 2025, but the market shows growth in monetary terms due to rising prices. Rosstat reported butter prices increased by 34% and milk by 22% in the first seven months of 2025.
Livestock Industry Challenges
The Russian livestock industry faces challenges, including rising production costs and staff shortages, contributing to stagnation in the past year.
Innovations and Strategic Focus
Technological advancements, such as cow neuro-implants developed by the startup Neiry, are transforming the industry. EkoNiva and Natura Pro have launched products tailored for coffee drinks, while Molvest focuses on high-value dairy products to enhance exports.
Butter Production and Consumption
Butter production in Russia rose by 2.1% in 2025, reaching 340.9 thousand tons, although domestic demand fell by 6.7%. Warehouse stocks of butter increased by 83%.
Strategic Opportunities
Russia holds potential to replace Iranian food supply volumes to Central Asian countries, particularly Tajikistan, Kyrgyzstan, and Turkmenistan. The country's agriculture sector, despite increased production, faced deteriorating financial results, missing out on over 100 billion rubles in profit by the end of 2025. Russian farmers have appealed to the Ministry of Industry and Trade regarding the mandatory labeling of dairy products, which has led to increased costs and farm closures.
Russia increased the export of oilseed meals and cakes by 23% in early 2026, with shipments exceeding 683 thousand tons and valued at more than 178 million US dollars.
Russian Ice Cream Exports
Russian ice cream exports to China in the first quarter of 2026 showed a sharp decline, decreasing by 27 times compared to the same period last year. By the end of 2025, Russian ice cream deliveries to this market decreased by 15% to $2.3 million from $2.7 million in 2024.
The volume of feed production in Russia could reach 40 million tons by 2030. By the end of 2025, feed production amounted to 36.8 million tons, showing a growth of 1.2%. The production structure shows a stable dominance of large agricultural holdings, which account for 73% of the output.
Cheese Production
Cheese production in Russia showed moderate growth. In January-February 2026, cheese production in Russia increased by 1.1%, reaching 135.9 thousand tons. However, total production in the cheese segment faced a decline due to decreased output and demand.
Butter Stocks in Russia Increase by 67% Amid Production Decline
The Russian butter market at the beginning of 2026 shows a growing imbalance between production, consumption, and stock levels. In January–February 2026, butter production decreased by 2.7% year-on-year to 51.1 thousand tons. Meanwhile, consumption declined even more significantly—by 5.9%, to 423 thousand tons. The key indicator is the stock dynamics. As of early March, butter stocks at processors increased by 67% to reach 28.6 thousand tons.
A major Russian ice cream producer, JSC 'TD Russian Cold', has informed its partners of a temporary suspension of product deliveries starting May 1, 2026.
Ice Cream Production in Russia Decreases by 17.1% in January-February
In January-February 2026, ice cream production in Russia decreased by 17.1% compared to the same period last year, amounting to 58.1 thousand tons. The decrease in production was accompanied by a more moderate reduction in consumption. In the first two months of 2026, ice cream consumption decreased by 3.5% year-on-year to 534.9 thousand tons. Ice cream stocks in manufacturers' warehouses also remained below last year's level by early March. According to analysts, the inventory amounted to 49.2 thousand tons, which is 14% less than on the same date in 2025.
Demand for Milk in Large Packages Grows in Russia
In Russia, the popularity of family-sized milk packaging is increasing. According to the analytical company NTech, sales of 1400 ml milk packages rose by 3% in 2025, while 2000 ml packages saw an 11% increase.
Modified: 2026/05/12