Milk market in Russia

Earlier Report Observations

The Russian milk market stabilized in 2019 before entering a period of sustained growth from 2020 onward. This shift was primarily driven by the food embargo, which restricted imports and stimulated domestic production and investment. Major agricultural holdings like Ekoniva expanded raw milk output, while processors actively launched new products, particularly in yogurt and cheese segments, catering to the health and wellness trend.

Growth continued through the early 2020s despite rising production costs for feed, energy, and labor. The ongoing embargo further encouraged import substitution, leading to record raw milk production volumes. Supply chain disruptions for imported equipment and packaging spurred the development of local alternatives, and a shortage of dairy fats caused a sharp increase in butter prices. Consumer demand remained robust, supported by rising household incomes.

In 2024, the market volume saw a significant increase, surpassing 7.1 million tons. This was fueled by higher raw milk production and continued consumer spending growth. The industry adapted to cost pressures by focusing on improving milk yield per cow and commissioning new processing capacities for value-added products like cream, cheese, and ice cream, ensuring supply met the evolving demand.

Production milk in Russia

In kind, 2018-2021, K t

Between 2018 and 2021, Russia ranked as the 26th largest milk producer in the world.

Top producers of milk, 2018-2021

World map of production of milk, 2018-2021

Milk production in Russia grew for the second consecutive year. In 2021, Russia produced 6 262 K t of milk, marking a slight increase of 1.5% compared to 2020. From 2018 to 2021, production rose by 4.8%, which translates to an annualized growth rate of 1.6%. The lowest production level was recorded in 2019 at 5 891 K t, when output declined by 1.5%. The largest increase occurred in 2020, with production jumping by 4.7%.

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

Exports milk from Russia

Exports in kind, K t

Russia's milk exports expanded for the second year in a row. In 2021, the country exported 63.3 K t of milk, up 14.1% from the previous year. Over the 2018-2021 period, exports increased by 21.1%, with a compound annual growth rate of 6.6%. The lowest export volume was in 2019 at 46.0 K t, when shipments fell by 12.1%. The largest growth was recorded in 2020, with exports surging by 20.7%.

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

From 2018 to 2021, Ukraine, Kazakhstan, and Belarus were the main destinations for Russia's milk exports in volume terms. Ukraine accounted for 40.8% of exports, Kazakhstan for 33.7%, and Belarus for 8.6%. Together, these three countries represented 83.2% of Russia's total milk export flows.

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

Russia's milk exports in value terms grew for the third consecutive year. In 2021, exports reached 65.0 M $ US, a 17.7% increase year-over-year. Between 2018 and 2021, export value rose by 34.9%, equivalent to an annualized growth rate of 10.5%.

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

Between 2018 and 2021, Kazakhstan, Ukraine, and Belarus were the primary buyers of Russian milk in value terms. Kazakhstan accounted for 43.5% of exports, Ukraine for 22.3%, and Belarus for 14.4%. Collectively, these three markets made up 80.2% of Russia's total milk export value.

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

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

Imports milk to Russia

Imports in kind, K t

Russia's milk imports declined for the second year in a row. In 2021, imports totaled approximately 344.2 K t, a sharp drop of 16.1% compared to 2020. From 2018 to 2021, imports decreased by 19.5%, with an annualized decline rate of 7.0%. The highest import volume was in 2019 at 437.3 K t, when imports grew by 2.3%.

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

Throughout 2018-2021, Belarus was the dominant supplier of milk to Russia in volume terms, accounting for 84.7% of total imports. Other partners held relatively small shares in the import market.

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 milk imports in value terms fell for the second consecutive year. In 2021, imports amounted to 518.9 M $ US, down 1.5% from 2020. Between 2018 and 2021, import value increased by 6.3%, corresponding to an annualized growth rate of 2.1%. The peak import value was in 2019 at 649.5 M $ US, when imports rose by 33.1%. The largest decline occurred in 2020, with imports dropping by 18.9%.

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

From 2018 to 2021, Belarus was the leading source of milk imports to Russia in value terms, representing 83.9% of total import flows. Other markets contributed smaller shares, forming a long tail of minor partners.

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

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