Milk and cream market in CIS

Earlier Report Observations

The volume of the milk and cream market in the CIS grew consistently from 37 514 thousand tons in 2018 to 40 228 thousand tons in 2020. This initial expansion was primarily driven by increased raw milk production in Russia, supported by state companies and large agriholdings like Ekoniva. The introduction of preferential lending programs for dairy processors in 2019 further stimulated investment and production capacity.

Market growth continued, reaching 42 741 thousand tons by 2023. The period saw rising consumer demand for specialized products such as lactose-free and vitamin-enriched milk, which encouraged producers to expand output. In 2022, higher milk and cream production in key regions contributed to growth. A notable surge in 2023 was linked to increased domestic demand for cream, cheese, and ice cream, supported by ongoing state lending schemes and the broadening of product assortments.

Throughout these years, modernization of production lines using state aid enhanced efficiency. Shifting consumer preferences toward functional and lactose-free dairy items, particularly among younger consumers, acted as a persistent demand driver. Challenges including rising feed and energy costs, along with summer heatwaves affecting raw milk supply, did not prevent the overall market expansion.

Production milk and cream in CIS

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

World map of production of milk and cream, 2017-2020

Milk and cream production in the CIS has grown for the third year in a row. In 2020, the region produced 40 396 thousand tonnes, marking a 4.2% increase from 2019. From 2017 to 2020, production rose by 9%, which translates to an average annual growth rate of 2.9%.

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

In value, 2017-2020, M $ US

In 2020, the value of milk and cream output in the CIS was 39 273 million US dollars, down 10.1% from the previous year. Over the period from 2017 to 2020, production value increased by 4.6%, with an average annual rate of 1.5%. The lowest value was recorded in 2018 at 37 164 million US dollars, while the peak occurred in 2019 at 43 675 million US dollars. The most significant rise was in 2019, with a 17.5% increase.

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

Exports milk and cream from CIS

Exports in kind, K t

Following a two-year decline, milk and cream exports from the CIS rebounded. In 2020, exports reached 246.1 thousand tonnes, showing a strong year-on-year growth of 22.9%. However, from 2017 to 2020, overall exports fell by 9.6%, averaging a 3.3% annual decrease. The lowest point was in 2019 at 200.3 thousand tonnes, with the steepest drop occurring in 2018 at 18.8%.

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

Between 2017 and 2020, Ukraine and China were the primary destinations for milk and cream exports in volume terms, together accounting for 7.8% of total export flows.

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

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

Exports in value, M $ US

Milk and cream export value in the CIS has increased for the second consecutive year. In 2020, exports amounted to 239.3 million US dollars, reflecting a 6.0% year-on-year improvement. From 2017 to 2020, however, export value decreased by 13.2%, with an average annual decline of 4.6%. The minimum was recorded in 2018 at 218.0 million US dollars, which also saw the largest drop of 21.0%.

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

Throughout 2017 to 2020, Ukraine and China remained the top buyers of milk and cream from the CIS in value terms, jointly representing 5.6% of total export value.

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

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

Imports milk and cream to CIS

Imports in kind, K t

The import market for milk and cream in the CIS showed an unstable trend over this period. Imports peaked in 2017 and hit their lowest point in 2018, with a 5.1-fold difference between these years. In 2020, imports totaled 77.7 thousand tonnes, a sharp 67.9% decrease from the previous year. The minimum was in 2018 at 51.1 thousand tonnes, which also experienced the largest decline of 80.3%. The most significant increase occurred in 2019, with a 374.3% rise.

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

From 2017 to 2020, Romania (3.7% of imports in volume), Ukraine (1.8%), and Iran (1.5%) were the key partners for milk and cream imports in kind, together making up 7.0% of total import flows.

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

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

Imports in value, M $ US

In 2020, milk and cream imports into the CIS were valued at 255.0 million US dollars, down 2.7% from the previous year. Over the 2017-2020 period, import value decreased by 5.4%, with an average annual rate of 1.8%. The lowest value was in 2018 at 218.4 million US dollars, which also saw the largest decline of 19.0%. The biggest increase was in 2019, with a 20.1% rise.

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

Between 2017 and 2020, Iran (4.1% of import value), Romania (1.7%), and France (1.6%) were the leading suppliers of milk and cream to the CIS in value terms, together accounting for 7.4% of total imports, amid a diverse range of smaller partners.

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

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