Milk production and sales in Russia

Agriculture in Russia

• Agriculture in Russia
• Labeling of dairy products

Export and import of dairy products in Russia

Main article: Export and import of dairy products in Russia

Fermented milk products (Russian market)

Main article: Fermented milk products (Russian market)

Chronicle

2024: Dairy production plant launched in Saratov for 1.6 billion rubles

In Saratov, in July 2024, a new dairy production plant was launched. Investments in the project amounted to ₽1,6 billion. The enterprise, built by Sokol Dairy Plant LLC, is located on the territory of the Stolypinsky Industrial Park. Read more here

2023

Growth in milk powder production by 7.3% to 204.8 thousand tons

Milk powder production in Russia is showing steady growth, as evidenced by data for 2023, published on August 2, 2024. In 2023, production increased by 7.3% or 14 thousand tons, reaching 204.8 thousand tons.

According to Agroexport, the export of milk powder from Russia for the period from January to November 2023 increased 5.4 times compared to the same period of the previous year, exceeding 17 thousand tons. In value terms, the volume of exports increased 2.9 times.

Milk powder production increased in Russia

The main share in the export structure is occupied by skimmed milk powder, the supply of which increased 5.9 times over 11 months, reaching 14.9 thousand tons. Shipments of whole milk powder also showed an increase of 3.3 times, amounting to 2.1 thousand tons.

The key importers of Russian milk powder in 2023 were neighboring countries. Exports to Kazakhstan increased 4.9 times to 10 thousand tons, to Armenia - 13 times to 1.9 thousand tons. 1.4 thousand tons of milk powder were sent to Georgia, despite the fact that in 2022 deliveries to this country were not carried out.

Among other large buyers, Azerbaijan (1.2 thousand tons, an increase of 118 times), Belarus (745 tons, an increase of 3.9 times) and China (656 tons, an increase of 29%) were noted.

Russian dairy products are becoming competitive both in the post-Soviet space and in the markets of non-CIS countries. Over the past few years, new support measures have been introduced to stimulate export supplies - Director General of the National Union of Milk Producers Artem Belov.

In 2023, Russian milk powder producers began to develop new markets. In June 2023, deliveries to Saudi Arabia started, in October 2023 - to the Philippines, and in November 2023 - to Algeria. The latter is the second largest importer of dry dairy products after China.^[1]

Named the largest milk producers in Russia

In July 2024, the 15 largest milk producers became known, each of which annually produces over 100 thousand tons of products. This information was presented in the joint rating of Soyuzmolok, Milknews and Streda Consulting.

According to Agroinvestor, the first place in the list by a significant margin is occupied by a company "EcoNiva" whose gross yield in 2023 amounted to 1.256 million tons. In second place is Agrocomplex named after N. I. Tkachev with an indicator of 328 thousand tons, and closes the top three, "Agroindustrial complex" producing 224 thousand tons of milk. The top five manufacturers also included agricultural holding ("Steppe" 179 thousand tons) and (Rusmolko 161 thousand tons).

Top milk producers in Russia named

According to the rating, the 30 largest companies account for 17% of the total milk production in the country. At the same time, the threshold for entering the top 30 increased to 65 thousand tons. Experts note that in the near future new players who are actively implementing investment projects, such as Rumelko, Vostok Agro and Kama Bacon, may be included in the rating.

The total production of marketable milk in Russia in 2023 increased by 5% and reached 25.8 million tons. For the first half of 2024, the increase in agricultural organizations amounted to 4%. Soyuzmolok CEO Artem Belov emphasizes the importance of expanding production capacities and increasing the production of marketable milk due to growing domestic demand and expanding export supplies.

Alexey Gruzdev, CEO of Streda Consulting, notes the tendency to enlarge dairy complexes. If earlier a complex of 1.2-1.8 thousand heads of dairy herd was considered typical, now it is 4.5-5 thousand heads or more. The main advantage of large farms is economies of scale and optimal logistics. However, there are also disadvantages: significant investments, the need for a large land bank and high requirements for personnel qualifications.^[2]

Growth in dairy production by 2.6% to 11.57 million tons

In 2023, approximately 11.57 million tons of dairy products were produced in Russia. This is 2.6% more than in the previous year, when the output was estimated at 11.27 million tons. The corresponding indicators are given in the BusinesStat review, which was published in early February 2024.

The data covers food categories such as fermented milk products (varenets, yogurt, kefir, prostokvasha, ryazhka, sour cream), butter, milk and cream, milk powder, canned milk, ice cream, cheeses, cottage cheese and curd products. One of the key market players is named "Wimm-Bill-Dann," "Ah End En," Firm "Agrocomplex" named after N.I. Tkachev, "Milkom" and "Hochland Russland."

According to BusinesStat estimates, in 2019, dairy production in the Russian Federation amounted to 10.77 million tons. In 2020 and 2021, an increase of 2.8% and 2.2% followed, respectively - to 11.08 million and 11.32 million tons. It is said that output is most dependent on domestic demand for dairy products.

In 2022, due to the current geopolitical situation, production decreased by 0.4%, being at the level of 11.27 million tons. The industry has faced a number of difficulties, including failures in the supply of equipment, spare parts and starters. In addition, a rapid increase in prices for packaging dairy products was recorded. The fact is that European Commission it limited the supply Russia of paints (pigments), solvents, bases for the production of stickers and adhesives, which provoked significant difficulties in the release of the main types of packaging. Plus, firms Elopak Stora Enso Tetra Pak specializing in the production of packaging for perishable products announced their withdrawal from the Russian market. The situation began to stabilize after the business of these companies in the Russian Federation was transferred to the leadership of Russian divisions.^[3]

Lactose production triples in 4 years

In 2023, approximately 1.86 thousand tons of lactose were produced in Russia. This is almost three times more than in 2019, when the volume of production of these products was estimated at 0.71 thousand tons. Such data are provided in the BusinesStat report, released on May 24, 2024.

Lactose, or milk sugar, was not produced in industrial volumes in Russia after the collapse of the USSR - it was imported mainly from Europe (from,, France,, and Germany Lithuania). Netherlands Italy Poland The fact is that Soviet enterprises producing lactose and lactose syrup remained on the territory and countries of the Belarus Ukraine Baltic states.

The question of the need for import substitution of these products arose in 2017, and two years later the production of lactose and lactose syrup was organized on the basis of the Stavropol dairy plant. The project was implemented with partial subsidies from the federal budget and lending to replenish working capital. The initial capacity of the production line was 5 tons of finished product per shift, and in 2021 the capacity doubled. As of 2023, in addition to the Stavropol dairy plant, the list of leading dairy sugar producers in the Russian Federation includes the Voronezh dairy plant, Uzlovsky dairy plant, Milk and Syrodel.

Since 2019, the volume of lactose production in Russia has been steadily growing. So, in 2020, production reached 1.18 thousand tons, rising on an annualized basis by 64.5%. In 2021, an increase was recorded at 40.1%, and the final result was 1.65 thousand tons. Then the growth rate decreased: in 2022, 1.73 thousand tons of products were produced, which is 5.1% more than in the previous year. In 2023, growth was at around 7.6%.^[4]

The growth of imports of equipment for milk production doubled to 8.7 billion rubles

In 2023, the volume of imports of equipment for milk production to Russia reached approximately 8.7 billion rubles. This is more than twice the result for 2022, when the figure was 3.8 billion rubles. Such data in mid-March 2024 was published by the Association of Manufacturers of Specialized Equipment "Rosspetsmash."

It is noted that in 2023, supplies of equipment for the dairy industry in the Russian Federation from abroad returned to the level of 2020-2021. According to Rosspetsmash, the volume of production of machines and equipment for the production and processing of milk in Russia (milking equipment, milk processing systems, milk separators) amounted to about 3.7 billion rubles at the end of 2023. This is 5.5% less compared to 2022.

The volume of imports of equipment for milk production to Russia reached approximately 8.7 billion rubles

The report, published on March 14, 2024 by the analytical agency Milknews and the industry association Soyuzmoloko, said that the dairy industry in Russia had adapted to the current geopolitical situation and sanctions by early 2024. The supply of process equipment and spare parts through parallel imports has been established. At the same time, supply chain gaps and a multiple increase in delivery times, as well as currency jumps and difficulties with international payments have a serious impact on the industry.

Analysts point to a difficult situation with modernization projects and the construction of new facilities. This applies primarily to large industries, where the most high-tech solutions are used with high requirements for performance and quality of execution, reliability and maintainability. Previously, such sites were equipped with equipment from leading world suppliers. However, in 2022, a number of major manufacturers stopped direct supplies of equipment to the Russian Federation.

The collapse in the industry was avoided thanks to the prompt reaction of market players and equipment suppliers, which sharply increased stocks of original parts. This gave time to find analogues and new suppliers in friendly countries, primarily in China and Turkey, as well as adapt logistics and payment schemes as part of parallel imports, the study says.[5]

Dairy consumption set an almost 30-year record of 249 kg per year per capita

In 2023, dairy consumption per capita in Russia reached 249 kg per year. This is 3% more compared to 2022, when the indicator was estimated at 241 kg per person per year. The recorded result was the highest in 28 years and almost corresponds to the level of 1995. Such data are given in a study by the National Union of Milk Producers (Soyuzmoloko), the results of which were published on February 19, 2024.

The report says that an increase in dairy consumption in the Russian Federation has been observed since 2019, when sales were approximately 234 kg per capita per year. In 2020, the value rose to 240 kg, and a year later increased to 241 kg. In addition, there is an increase in raw milk production: in 2023, it showed an increase of 2.5% on an annualized basis, reaching 33.8 million tons.

Dairy consumption per capita in Russia reached 249 kg per year

According to the Vedomosti newspaper, referring to Soyuzmolok's statistics, according to the results of 2023, Russia produces more than 85% of dairy products consumed itself, while imports account for less than 15%. At the same time, almost all imports (about 90%) are provided by Belarus.

The retail value of dairy products at the end of 2023 was only 0.5% higher compared to a year ago. The average retail price of pasteurized milk was 74 rubles per 1 kg, ultra-pasteurized milk - 79 rubles. Analysts note that on average during 2023, retail prices for dairy products were 2.6% higher than in 2022 and restrained food inflation. The cost of milk and dairy products among producers for the year increased by 1.67%. Relatively low producer prices are also associated with export difficulties: the growth of supply in the domestic market restrains prices.^[6]

Decrease in production of equipment for milk production by 16% to 3.3 billion rubles

According to the Rosspetsmash association, published at the end of January 2024, at the end of 2023, the volume of production of machines and equipment for the production and processing of milk (milking equipment, equipment for processing and processing milk, milk separators, excluding packaging and marking equipment) in Russia amounted to 3.3 billion rubles, which is 16% less than a year earlier.

According to experts, high dependence on imports remains in the segment of milking equipment, as well as high-performance equipment. In general, the entire range of dairy equipment is produced in Russia, the weak point is the underdeveloped services for the engineering of production lines.

The volume of production of machines and equipment for the production and processing of milk amounted to 3.3 billion rubles

According to the materials of Rosspetsmash, in 2023 the volume of imports, after a sharp decline in 2022, returned to the level of 2020-2021. There is no significant change in the geography of supplies in 2023 compared to 2022. The main countries supplying their products to Russia are Poland, Italy, Spain, Germany, the Netherlands, France, Turkey and others. Turkey demonstrates a significant increase in the supply of equipment to Russia, the study notes.

The association stressed that domestic enterprises are ready to replace foreign equipment. The bulk of Russian manufacturers constantly invest in the development of production. A number of companies are implementing comprehensive projects related to the construction of new production sites.

Earlier in January 2024, Roman Salomatin, deputy director of Rosspetsmash for Food Engineering, cited data according to which in the segment of milk processing equipment, production in 2023 decreased by about 15%, imports - 11%. At the same time, the share of domestic equipment on the market is more than 40%.^[7]

Growth in milk production to 33.5 million tons

Milk production in Russia in 2023 reached 33.5 million tons, which is about 0.5 million tons more than the previous year. Such figures were cited by the Minister of Agriculture of the Russian Federation Dmitry Patrushev on January 23, 2024 during the 25th Congress of the National Union of Milk Producers.

According to the head of the Ministry of Agriculture of the Russian Federation, over the past five years, Russia has confidently maintained an increase in the production of raw milk. At one time, the annual increase was even 700-800 thousand tons, the minister said. Patrushev also cited data according to which the production of cream in Russia at the end of 2023 increased by 21%, raw - by 16%, ice cream - by 12%.

As noted in the Ministry of Agriculture, thanks to the improvement of genetics and the use of modern technologies in the industry, a trend has formed in recent years to increase dairy productivity. In the first six months, about 4062 kg of milk were fed up in agricultural organizations (except for micro-enterprises) per 1 cow. This is 6.6% higher than in the first half of 2022. The increase makes it possible to compensate for the reduction in the number of cattle in private farmsteads and to ensure a stable positive dynamics in the development of the industry.

The Ministry of Agriculture calls dairy cattle breeding one of the investment-intensive and promising areas of animal husbandry. To stimulate this sector, the department implements various state support measures, including reimbursement of part of the capital costs for the construction and modernization of dairy complexes, including specialized sites for raising young cattle, as well as preferential investment and short-term lending, compensating and stimulating subsidies. At the same time, the focus of attention is to support effective projects with high productivity of the dairy herd, the ministry added.^[8]

2022: Russia's largest milk processors named

In July 2023, a new edition of the rating of the largest milk processors in Russia was published. The study was conducted by analysts from the National Union of Milk Producers (Soyuzmoloko), industry agency Milknews and Streda Consulting.

According to the results of the study, in 2022, Russian companies accelerated their growth rates to 15%, despite foreign sanctions and the rejection of marketing activity. Danone remained the leader in the rating (on July 16, 2023, Russian assets were transferred to the interim management of the Federal Property Management Agency), whose revenue amounted to 126.9 billion rubles, which is 3.4% more than a year by year.

PepsiCo was in second position in the ranking with revenue of 117.2 billion rubles. Molvest Group of Companies has the third place with revenue of 45.2 billion rubles. On the fourth line is the holding "Komos Group," which increased revenue by a quarter, to 39.9 billion rubles. Renna Group of Companies is in fifth place with revenue of 38.8 billion rubles and dynamics plus 7.2%.

Analysts noted that the companies included in the top three have very different revenue growth topics - 3.4, 8.7 and 17.4%, respectively. Danone has the lowest growth rates. The highest revenue growth rates of EkoNiva Group of Companies - by 74.9% to 11.9 billion rubles.

Soyuzmoloko CEO Artem Belov, whose words are quoted in the rating, noted that thanks to compensation for a sharp increase in production costs, some companies managed to achieve growth by more than 35-40%. The companies of the second and third tens with a traditional all-white assortment were especially successful.

As noted by Streda Consulting Alexei Gruzdev, in 2022 the share of the top 30 players in the market remained at the level of about 50%, and despite inflation of 19%, the total turnover of these players' companies grew by only 15%, since against the background of weak consumer demand, not all companies managed to grow together with the market and achieve comparable growth rates.^[9]

2021: Rusagro got rid of the dairy business

Rusagro got rid of the dairy business, which the group announced on October 19, 2021. The company sold the last cow's milk farm - it is located in the Belgorod region. The buyer of this asset has not been named. Read more here.

2020

Danone and Wimm-Bill-Dann give up positions in the Russian dairy market

The volume of the Russian dairy market at the end of 2020 reached 1.25 trillion rubles, an increase of 9.5% compared to 2019. This is stated in a study published in July 2021, which was jointly conducted by the consulting company Streda Consulting, Soyuzmoloko and the Milknews news agency.

As Vedomosti writes with reference to this report, Danon's share in the Russian dairy market in 2020 amounted to 9%, down 1.8 percentage points compared to 5 years ago. The share of Wimm-Bill-Dann (part of PepsiCo) in the same period fell by 2.3 percentage points, to 8%.

Sales of Danone dairy products on the Russian market at the end of 2020 increased by 1.7% to 122.6 billion rubles, Wimm-bill-danna - decreased by 1.3% to 99 billion rubles. The top three leaders included the Renna group (owner of the Korovka from Korenovka and Alekseevskoye brands). The top 5 was closed by the GC "" Molvest("Vkusnoteevo," "Fruate," revenue of 28.7 billion rubles) and "Komos Group - Milkom" ("Zelenoe Village," revenue of 26.9 billion rubles).

Market leaders continue to actively increase capacity, and the industry, despite the difficult situation in the economy in recent years, remains attractive for investors, - said the general director of Soyuzmolok Artem Belov.

According to him, the dairy sector is becoming more and more interesting due to the opening export opportunities. International companies in recent years have given priority to the modern dairy category and more complex and high-margin products, while in traditional categories and cheeses the leading positions are gradually occupied by regional players and large federal companies, he added.

According to analysts, the rating participants consolidated 50% of the market - these are high indicators compared to the raw milk production sector, where the trend towards consolidation is only gaining momentum.^[10]

Milk production growth by 2.7%, to 32.2 million tons - Rosstat

Milk production in Russia at the end of 2020 increased by 2.7% compared to 2019 and reached 32.2 million tons. This is evidenced by the data of the Federal State Statistics Service (Rosstat). According to the ministry, in December 2020, milk production in the Russian Federation increased even more - by 3.1%, to 2.4 million tons.

Minister of Agriculture Dmitry Patrushev, speaking at the XII Congress of the National Union of Milk Producers (Soyuzmoloko), noted that the indicators of 2020 in the industry turned out to be the best over the past 10 years.

According to Patrushev, milk production in the Russian Federation in 2020 increased by 855 thousand tons, and milk yield per cow, which exceeded 6 thousand kg (in agricultural organizations), also became a record.

It is noted that in the dairy industry in 2020, the production of ice cream, cheeses, cottage cheese, butter increased. The production of fermented milk products and milk powder remained at the level of 2019.

In 2020, an increase in the cost of production of Russian raw materials milk was recorded, which is mainly associated with an increase in the price of the feed base due to adverse weather factors, especially in the regions of Siberia (an increase in the cost of feed of about 45%), in the Center (+ 10%), Volga region (+ 7%). At the same time, the Russian dairy raw materials market continues to be influenced by relatively expensive imports.

The Minister of Agriculture also said that in 2020, foreign trade in dairy products exceeded $300 million, which is 12% more than a year earlier. For five years, export volumes in this category increased by a third. The supply of cheeses, cottage cheese, butter and whey is growing most actively. Sales markets for us are traditional - this, Kazakhstan,, Belarus, Azerbaijan Uzbekistan he added.^{[11][12][13][14]}

2016: Reduced production and shortage of milk 7 million tons

Milk production in Russia decreased in 2016 by 0.2% to 30.7 million tons. Milk production in farms increased in 2016 by 6%, in agricultural enterprises - by 2%. According to Rosstat.

The Ministry of Agriculture estimates the shortage of milk at 7 million tons. The shortage of milk in Russia will continue in 2017 due to a reduction in production in personal subsidiary farms, said in March 2017 the head of the National Union of Milk Producers (Soyuzmoloko) Andrei Danilenko.

"The

milk shortage persists. Unfortunately, it is intensifying, because a very large share (milk - ed.) Is still produced in the private sector. The volume of production in the private sector will gradually decrease, at least by 5% annually, "Danilenko said, Interfax reports.

Processing enterprises are provided with milk by only 70% of the need. At the same time, domestic dairy products occupy about 90% of the assortment in stores.

"So we do not provide ourselves with raw materials for the production of the necessary volume of products. Because in dairy farming the situation is as follows: you invest today, and you get results in seven to ten years. Accordingly, approaches to state support and state strategy should be long-term, "Soyuzmoloko emphasized^[15]

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Notes