Russian "Ekoniva" forecasts a milk production increase to 1.4 million tons amid tightening fiscal conditions
"Last year, we produced 1.35 million tons of milk in physical weight. This year, we expect to exceed the 1.4 million tons mark, with a possible increase of around 100,000 tons," Stefan Dürr clarified, noting that while the desired growth rate could be higher, the current plans are based on existing capabilities.
The main dairy division of the holding includes 42 modern livestock complexes, including those under construction. The total cattle herd is about 250,000 head, with the milking herd currently numbering 120,000. By the end of the year, it is planned to increase the herd by another 10,000.
The active development of infrastructure continues: new farms with a total capacity of 16,500 head are being built in the Voronezh, Kaluga, Samara regions, and Altai Krai. In addition, an expansion of existing complexes is planned for 2026–2027. "For example, 10 of our farms are designed to milk 3,500 animals daily, but they currently house 2,800 milking cows. We plan to increase the milking herd by a quarter at each of these complexes by slightly expanding the cow barn buildings, with completion of work expected by 2026," explained Stefan Dürr.
However, the pace of investment activities is under pressure from the sharp rise in the Central Bank’s key interest rate. According to Stefan Dürr, servicing loans has become the fastest-growing expense item in milk production. "The preferential rate, following the key rate, has increased from 5% to 10.5–12%. Such a sharp rise was unexpected for businesses and has significantly increased costs, even with the continued preferential lending regime. Previously, the Ministry of Agriculture subsidized 90% of the rate for commercial banks, but now it is only 50%, which increases the cost of loans and affects the pace of new farm construction," the company's president stated.
Traditional dairy products—pasteurized and ultra-pasteurized milk—account for about 90% of Ekoniva's revenue. Processing capacities, developed since 2013, are currently fully loaded. The group operates four processing plants in the Voronezh, Kaluga, and Novosibirsk regions, producing a wide range of natural dairy products under its own brand.
The company is exploring opportunities to expand its product range, including increasing ice cream production. However, this project has been postponed due to the need for significant investments. An experimental direction is ready-made food production. The expansion of the yogurt line is also not ruled out.
Recently, Ekoniva launched a new product on the market—a dairy energy drink, High Focus. "The idea came about by chance: former Red Bull employees suggested the recipe. The product was launched in spring, and although the volumes are still small, the start seems promising," shared Stefan Dürr.
The Ekoniva Group is one of the five largest agricultural landowners in Russia, with a land bank of 632,400 hectares. In 2024, the group’s enterprises produced about 1.35 million tons of raw milk, and sales revenue grew by 29%, reaching 91.1 billion rubles. The group operates in 13 regions of Russia.
