Concentrated not sweetened milk and cream market in Russia

Earlier Report Observations

The Russian market for concentrated unsweetened milk and cream operated without major regulatory changes in 2018. The following year, the introduction of electronic veterinary certification required producers to integrate new quality control systems, which, coupled with increased competition from a surge of new product launches, contributed to a decline in production volumes. In 2020, drought in southern Russia raised feed costs and production expenses, leading to a further slight decrease in output. Concurrently, the imposition of a food embargo at the start of the year spurred government support for domestic production, laying the groundwork for future expansion.

Strengthened positions of state-owned producers, such as Agrogroup Ekoniva, drove a recovery in production in 2021. Sanctions and import substitution policies, including export subsidies and new labeling requirements under amended technical regulations, pushed domestic output to a peak in 2022. However, by 2023, rising costs for raw materials and energy increased production expenses, which, despite growing export demand, resulted in a contraction of production volumes.

Production concentrated not sweetened milk and cream in Russia

In kind, 2017-2020, K t

Between 2017 and 2020, Russia ranked as the world's sixth-largest producer of concentrated unsweetened milk and cream.

Top producers of concentrated not sweetened milk and cream, 2017-2020

World map of production of concentrated not sweetened milk and cream, 2017-2020

Russia's production of concentrated unsweetened milk and cream declined for the third year in a row. In 2020, output reached 160.0 thousand tonnes, down 1.5% from 2019. Over the 2017-2020 period, production fell by 9.7%, which translates to an average annual decrease of 3.3%.

Annual dynamics of production in Russia in kind, 2017-2020, K t

In value, 2017-2020, M $ US

For the third consecutive year, Russia's production value of concentrated unsweetened milk and cream dropped. In 2020, it was valued at 208.0 million US dollars, a 7.3% year-on-year decline. From 2017 to 2020, production value decreased by 18.5%, with a compound annual growth rate (CAGR) of -6.6%.

Annual dynamics of production in Russia in value, 2017-2020, M $ US

Exports concentrated not sweetened milk and cream from Russia

Exports in kind, t

In 2020, Russia exported 4 418 tonnes of concentrated unsweetened milk and cream, a sharp decline of 11.2% compared to the previous year. Over the 2017-2020 period, exports decreased by 9.1%, with a CAGR of -3.1%. The lowest export volume was recorded in 2018 at 4 041 tonnes, while the highest was in 2019 at 4 976 tonnes. The largest drop occurred in 2018, falling by 16.8%, whereas the biggest increase was in 2019, rising by 23.1%.

Annual dynamics of product's exports from Russia in kind, 2017-2020, t

From 2017 to 2020, Russia's exports of concentrated unsweetened milk and cream were heavily dependent on Kazakhstan, which accounted for 99.4% of total export volumes.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Russia in kind, 2017-2020

Exports in value, K $ US

In 2020, Russia's exports of concentrated unsweetened milk and cream amounted to 5 744 thousand US dollars, a 16.5% decrease year-on-year. Between 2017 and 2020, export value fell by 18%, equating to an annualized rate of -6.4%. The lowest value was recorded in 2018 at 5 597 thousand US dollars. The largest decline occurred in 2018, dropping by 20.1%, while the biggest increase was in 2019, rising by 22.9%.

Annual dynamics of product's exports from Russia in value, 2017-2020, K $ US

During the 2017-2020 period, Russia's export value of concentrated unsweetened milk and cream was almost entirely tied to Kazakhstan, which held a 99.5% share of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Russia in value, 2017-2020

Imports concentrated not sweetened milk and cream to Russia

Imports in kind, t

The market showed an unstable trend over this period. Imports peaked in 2017 and fell to their lowest point in 2019, with a 6.6-fold difference between these years. In 2020, foreign supplies of concentrated unsweetened milk and cream to Russia totalled 8 749 tonnes, marking a significant increase of 111.0% compared to the previous year. The minimum volume was recorded in 2019 at 4 147 tonnes. The largest decline occurred in 2019, dropping by 72.9%.

Annual dynamics of product's imports to Russia in kind, 2017-2020, t

From 2017 to 2020, the import structure in volume terms was dominated by a single market: Belarus, with a share of 98.9% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Russia in kind, 2017-2020

Imports in value, K $ US

The market exhibited an unstable trend throughout the timeframe. Import values reached their maximum in 2017 and dropped to a minimum in 2019, a 5.1-fold shift. In 2020, cross-border shipments of concentrated unsweetened milk and cream to Russia totalled 8 122 thousand US dollars, up by 40.1% over the past year. The lowest value was recorded in 2019 at 5 796 thousand US dollars. The largest decline occurred in 2018, falling by 73.9%.

Annual dynamics of product's imports to Russia in value, 2017-2020, K $ US

Throughout 2017-2020, Belarus almost fully determined the geographical structure of Russia's imports in value terms for concentrated unsweetened milk and cream, with a share of 99.0% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Russia in value, 2017-2020