Butter, dairy spreads and milk fats market in Russia

Earlier Report Observations

The market for butter, dairy spreads, and milk fats in Russia grew from 388.3 thousand tons in 2018 to 428.5 thousand tons in 2020. This increase was partly driven by the ongoing impact of the food embargo and economic crisis, which boosted sales of spreads as more affordable substitutes for butter. Raw milk shortages constrained butter production, but manufacturers responded by expanding output of spreads with vegetable fats. In 2020, the COVID-19 pandemic affected logistics, yet rising demand for dairy fats from ice cream producers helped sustain market volume.

From 2021 to 2022, butter production jumped significantly, reaching 354.8 thousand tons in 2022, pushing the overall market size to 450.2 thousand tons. This surge was linked to temporary cuts in import duties on butter to offset shortages of dairy fats, alongside growing domestic demand for high-quality products. In 2023, the market stabilized at around 450 thousand tons, despite increased consumer preference for butter and a decline in interest in margarines and spreads. Continued temporary duty relief supported the market, but rising costs for raw milk and finished goods began to exert pressure.

By 2024, the market volume expanded to 459.2 thousand tons, even as butter output edged down slightly. A shortage of dairy fats led to a record 41% increase in retail prices compared to 2022. Temporary import duty reductions were extended through mid‑2025 to partially alleviate the deficit. The cost of raw milk rose by 28.8% by the end of 2024, further influencing prices. In 2025, production remained steady at approximately 360 thousand tons.

Production butter, dairy spreads and milk fats in Russia

In kind, 2018-2021, K t

From 2018 to 2021, Russia ranked 13th globally in the production of butter, dairy spreads, and milk fats.

Top producers of butter, dairy spreads and milk fats, 2018-2021

World map of production of butter, dairy spreads and milk fats, 2018-2021

Russia's production of butter, dairy spreads, and milk fats grew for the third year in a row. In 2021, the country produced 307.4 K t, up 0.8% from 2020. Over the 2018-2021 period, production rose by 2.6%, averaging an annual growth rate of 0.9%.

Annual dynamics of production in Russia in kind, 2018-2021, K t

Exports butter, dairy spreads and milk fats from Russia

Exports in kind, K t

In 2021, Russia exported 4.4 K t of butter, dairy spreads, and milk fats, down 3.0% from the previous year. From 2018 to 2021, exports increased by 31.4%, with an average annual growth rate of 9.5%. The lowest export volume was in 2019 at 2.8 K t, while the highest was in 2020 at 4.5 K t. The largest decline occurred in 2019, falling by 14.7%, and the biggest increase was in 2020, jumping by 58.9%.

Annual dynamics of product's exports from Russia in kind, 2018-2021, K t

Between 2018 and 2021, Kazakhstan and Ukraine were the top destinations for Russia's exports in kind, together accounting for 81.6% of total flows, with the rest spread across other countries.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Russia in kind, 2018-2021

Exports in value, M $ US

Market performance showed notable fluctuations during this period. Export volumes varied 2.1 times from the low in 2019 to the high in 2021. In 2021, Russia's cross-border shipments of butter, dairy spreads, and milk fats reached 18.2 M $ US, a solid increase of 18.4% year-over-year. The lowest value was in 2019 at 8.8 M $ US. The largest decline happened in 2019, dropping by 14.8%, while the biggest increase was in 2020, rising by 74.9%.

Annual dynamics of product's exports from Russia in value, 2018-2021, M $ US

From 2018 to 2021, Kazakhstan, Ukraine, and Azerbaijan emerged as the main markets for Russia's exports in value terms. Kazakhstan accounted for 44.3%, Ukraine for 30.8%, and Azerbaijan for 5.2%, together making up 80.4% of total flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Russia in value, 2018-2021

Imports butter, dairy spreads and milk fats to Russia

Imports in kind, K t

After rising for two years, Russia's imports of butter, dairy spreads, and milk fats declined. In 2021, imports totaled 125.7 K t, a moderate decrease of 5.8% from 2020. Over the 2018-2021 period, imports grew by 40.8%, with a compound annual growth rate of 12.1%. The highest import volume was in 2020 at 133.4 K t, and the largest increase occurred in 2019, up by 34.1%.

Annual dynamics of product's imports to Russia in kind, 2018-2021, K t

Between 2018 and 2021, Belarus, New Zealand, and Argentina dominated Russia's imports in kind. Belarus contributed 62.9%, New Zealand 15.3%, and Argentina 9.6%, together comprising 87.8% of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Russia in kind, 2018-2021

Imports in value, M $ US

Russia's imports of butter, dairy spreads, and milk fats in value terms declined for the second consecutive year. In 2021, imports reached 599.2 M $ US, remaining relatively stable compared to 2020. From 2018 to 2021, imports increased by 40.7%, with a compound annual growth rate of 12.1%. The peak value was in 2019 at 640.4 M $ US. The largest decline was in 2020, down by 6.3%, while the biggest increase was in 2019, up by 50.4%.

Annual dynamics of product's imports to Russia in value, 2018-2021, M $ US

From 2018 to 2021, Belarus, New Zealand, and Argentina were the primary sources for Russia's imports in value terms. Belarus made up 64.7%, New Zealand 15.1%, and Argentina 8.9%, together accounting for 88.7% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Russia in value, 2018-2021