Russia Global Dairy Exports Up 20% in 2024

Russia’s Ministry of Agriculture Agroexport Center has said that Russia exported dairy products worth US$370 million in 11M 2024, up 20% year-on-year. More than 30% of these export revenues came from cheeses and cottage cheese, 22% from fermented dairy products, 14% from ice cream, 11% from powdered milk, 9% from milk and cream and 6% from dry whey.

In physical terms, Russian companies exported 31,000 tonnes of milk and cream in 11M, up 9% YoY. Exports of cheeses and cottage cheese increased 23% to 27,000 tonnes, powdered milk was up 31% to 18,000 tonnes, and ice cream exports increased 11% to 14,000 tonnes.

The largest consumers of Russian dairy products were Kazakhstan, Belarus and Uzbekistan.

Artyom Belov, the CEO of Russia’s National Union of Milk Producers (Soyuzmoloko), said that “Key buyers of Russian dairy products are traditionally the post-Soviet states. Russia exports not only drinking milk but also fermented dairy products, cottage cheese, cheeses and products made using cheese-making technology to these countries, where Russia has strong positions and a recognizable brand.”

In January-November this year, China entered the top five importers of Russian dairy products for the first time, with exports to China up 70% YoY to US$16 million in value. In particular, powdered milk sales to China doubled, cheese and cottage cheese exports’ value grew 12-fold, ice cream exports’ value increased 58% and milk and cream sales grew more than 3-fold. The main supplies to non-CIS foreign markets are from the exchange group – non-fat and whole powdered milk and dry whey. Exports of these products grew 26%, 67% and 11%, respectively, in 9M, Belov said. “Russia continued to increase supplies to China, Algeria, Egypt, Saudi Arabia and other countries,” he said.

Other Russian producers are expanding their diary export market. Milkom, part of Komos Group, plans to export 10,000 tonnes of finished products in 2024, which will amount to an increase in revenues of around ₽700 million (US$6.7 million), according to Kirill Chechin, the Komos Group CEO. Growth is expected to be 20% in physical terms. Chechin added “We significantly increased exports of dry whey and achieved a trade balance (exports/imports), using foreign currency earnings to import the necessary equipment, packaging materials and ingredients. The main drivers of export growth this year remain the CIS countries, which continue to form the main element of our exports.”

The company’s Shanghai office managed to raise exports to China to second place among foreign countries. Dry Whey is used in bakery, confectionery, desserts, ice cream, soups and sauces, beverages and infant nutrition products in China. The company also resumed exports of dairy products to the UAE, Vietnam and Azerbaijan during the year.

Russian dairy product exports could nearly double to US$700 million by 2030, according to Agroexport’s estimates.