Russia’s Dairy Industry Shows Steady Growth: Production and Processing on the Rise
Production Figures: Upward Momentum
Drinking milk production grew by 5%, reaching 6.1 million tonnes compared to 2023. Significant growth was also recorded in the following segments:
- Cheese: +5.1% (841,000 tonnes)
- Cottage cheese: +5% (474,500 tonnes)
- Ice cream: +16.6% (600,000 tonnes)
- Cream: +14.7% (362,000 tonnes)
- Yogurt: +6.6% (791,000 tonnes)
- Fermented dairy products (excluding cottage cheese and derivatives): +3.2% (2.7 million tonnes)
Preliminary estimates indicate that total raw milk production across all farm categories reached 34.07 million tonnes, a 0.8% increase from 2023.
Growth Drivers: Investments and State Support
According to the Ministry of Agriculture, this positive dynamic has been driven by an expanded raw milk supply, facilitated by large-scale investment projects. The dairy sector remains one of the most heavily supported industries within Russia’s agricultural sector. In 2024, government subsidies and other financial support totaled 81 billion rubles, nearly 20 billion rubles more than in 2023.
Industry Challenges and Outlook
Artem Belov, CEO of the National Union of Dairy Producers (Soyuzmoloko), highlighted that despite macroeconomic challenges, the dairy sector has maintained stable positive growth. He noted that consumer demand for dairy products has been increasing at a faster rate than raw milk production, driven by rising disposable incomes.
However, a key strategic challenge remains: expanding raw milk production to match the pace of processing demand. Without this, domestic dairy processors may face a shortage of raw materials, potentially leading to increased reliance on imports in certain segments.
As Russia’s dairy industry enters 2025 with strong results, it faces new challenges: balancing production and processing, modernizing facilities, and adapting to evolving consumer preferences.
