Milk and cream market in Eastern Europe (including Northern Asia)

Earlier Report Observations

Between 2018 and 2020, the market volume for milk and cream in Eastern Europe showed notable fluctuations. Starting at 40.6 thousand tons in 2018, it dipped to 38.3 thousand tons in 2019 even as new private producers entered the segment, intensifying competition. The market rebounded to 41.2 thousand tons in 2020, driven primarily by increased consumer demand for basic dairy products during the COVID-19 pandemic, which stimulated production.

The period from 2021 to 2023 was marked by volatility linked to geopolitical and supply-side factors. In 2021, market volume fell sharply to 35.8 thousand tons, hampered by logistical difficulties arising from military actions that disrupted supply chains, though consumer interest in local products persisted. By 2022, the market recovered to 40.4 thousand tons, partly due to a decline in dairy imports which bolstered domestic producers. However, in 2023, the market contracted again to 34.7 thousand tons as a shortage of raw milk on the domestic market, coupled with ongoing logistical issues and power supply interruptions related to the war, constrained production capacity.

Production milk and cream in Eastern Europe (including Northern Asia)

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

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

Following two years of decline, milk and cream production in Eastern Europe (including Northern Asia) has rebounded. In 2019, production reached its lowest point at 39 858 K t, marking a significant 5.5% decrease. However, by 2020, output had recovered to 42 806 K t, representing a solid 7.4% year-over-year increase.

Annual dynamics of production in Eastern Europe (including Northern Asia) in kind, 2017-2020, K t

In value, 2017-2020, M $ US

After two consecutive years of decline, milk and cream production value in Eastern Europe (including Northern Asia) has shown signs of recovery. The lowest value was recorded in 2019 at 23 769 M $ US, reflecting a substantial 13.3% drop. In 2020, production value rose to 24 542 M $ US, a 3.3% increase from the previous year. Looking at the broader period from 2017 to 2020, production value decreased by 13.7%, averaging an annual decline of 4.8%.

Annual dynamics of production in Eastern Europe (including Northern Asia) in value, 2017-2020, M $ US

Exports milk and cream from Eastern Europe (including Northern Asia)

Exports in kind, K t

Milk and cream exports from Eastern Europe (including Northern Asia) have grown for the third straight year. In 2020, exports reached 2 312 K t, up 3.2% from 2019. Over the 2017-2020 period, exports increased by 11.7%, with a compound annual growth rate of 3.7%.

Annual dynamics of product's exports from Eastern Europe (including Northern Asia) in kind, 2017-2020, K t

From 2017 to 2020, Germany was the leading destination for milk and cream exports in kind, accounting for 47.6% of total flows. Italy followed with 6.0%, and China with 2.7%. Together, these three countries represented 56.3% of all exports in kind during this period.

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

World map of product's exports from Eastern Europe (including Northern Asia) in kind, 2017-2020

Exports in value, M $ US

Milk and cream export value from Eastern Europe (including Northern Asia) has declined for the second consecutive year. The highest value was recorded in 2018 at 1 378 M $ US, showing a 1.3% increase. In 2019, export value fell by 3.0% to its lowest point. By 2020, export value stood at 1 326 M $ US, a slight 0.8% decrease from 2019. Overall, from 2017 to 2020, export value decreased by 2.6%, with an average annual decline of 0.9%.

Annual dynamics of product's exports from Eastern Europe (including Northern Asia) in value, 2017-2020, M $ US

Between 2017 and 2020, Germany was the top destination for milk and cream exports in value terms, making up 41.7% of total flows. Italy accounted for 5.9%, and China for 2.9%. Combined, these three countries represented 50.5% of all export value during this timeframe.

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

World map of product's exports from Eastern Europe (including Northern Asia) in value, 2017-2020

Imports milk and cream to Eastern Europe (including Northern Asia)

Imports in kind, K t

Milk and cream imports into Eastern Europe (including Northern Asia) have increased for the second year in a row. In 2018, imports hit their lowest point at 504 K t, a sharp 22.5% decline. The following year, imports surged by 32.7% to reach a higher level. By 2020, imports amounted to 679 K t, up 1.5% from 2019. Over the 2017-2020 period, imports grew by 4.4%, averaging an annual increase of 1.5%.

Annual dynamics of product's imports to Eastern Europe (including Northern Asia) in kind, 2017-2020, K t

The import structure for milk and cream in kind from 2017 to 2020 was highly diversified. Lithuania was the largest source, accounting for 10.6% of imports, followed by Germany at 8.2% and Kazakhstan at 3.3%. Together, these three countries made up just 22.0% of total flows, with the remaining 78.0% spread across a wide range of other partners.

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

World map of product's imports to Eastern Europe (including Northern Asia) in kind, 2017-2020

Imports in value, M $ US

Milk and cream import value into Eastern Europe (including Northern Asia) has shown mixed trends. In 2018, import value decreased by 4.9%, the largest decline in the period. The following year, it increased by 2.0%, the largest rise. By 2020, import value totaled 703 M $ US, a modest 2.7% reduction compared to 2019. Overall, from 2017 to 2020, import value fell by 5.6%, with an average annual decrease of 1.9%.

Annual dynamics of product's imports to Eastern Europe (including Northern Asia) in value, 2017-2020, M $ US

The import structure in value terms from 2017 to 2020 indicates a diverse set of trading partners. Lithuania led with 14.7% of imports, followed by Germany at 12.2% and Kazakhstan at 1.9%. Collectively, these three countries accounted for only 28.9% of total flows, while the remaining 71.1% was distributed among numerous smaller markets.

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

World map of product's imports to Eastern Europe (including Northern Asia) in value, 2017-2020