Russia’s raw milk production set for growth

To a large extent, the growth in raw milk production in the past few years was made possible by a solid rise in domestic consumption. Photo: Canva

Russia will boost milk production by nearly 5 million tonnes in the next 6 years, reaching an output of 39 million tonnes per year by 2030, Oksana Lut, Russia’s agricultural minister, said during a press conference on the Vologrda region.

The dairy industry is expected to contribute to a 25% growth in Russia’s agricultural industry performance in the next 6 years, Lut emphasised.

In 2023, Russian milk production stood at 33.5 million tonnes, which was 0.5 million tonnes up compared with the previous year, Dmitry Patrushev, the then agricultural minister, revealed earlier this year.

He said that the output in the raw milk sector had steadily grown during the previous 5 years on the back of increased productivity, the construction of new farms and the ongoing modernisation of existing operations.

Investments in R&D needed

Epifantseva, a member of the agricultural committee of the federation council, the upper chamber of Russia’s parliament, believes that the industry could see even more significant growth in the coming years. In an interview with the Russian publication Agroinvestor, she predicted that Russian raw milk production could increase by 36-42% compared to the 33.5 million tonnes achieved in 2023, potentially reaching nearly 45 million tonnes in 2030.

To beat that target, Epifantseva called on policymakers to facilitate investments in agricultural science. For example, she said, more work is needed in the field of cow genotype so that farmers can predict cows’ productivity at birth.

In general, Epifantseva said, Russia needs to introduce new technologies along the supply chain, not only in the raw material segment but also in the processing and storage segments.

Target markets

To a large extent, the growth in raw milk production in the past few years was made possible by a solid rise in domestic consumption.

As estimated by Alexey Voronin, spokesperson for Soyuzmoloko, the Russian union of dairy manufacturers, last year consumption jumped by 1.5 million tonnes, excluding the dynamic in backyard farms, where households manufacture dairy products for their own demand.

Agroinvestor estimated that Russia’s dairy consumption last year reached 249 kg per capita, which was the highest level in the last 28 years. However, the prospects of further growth remain questionable.

In the coming years, the further growth in raw milk output is likely to be facilitated by sales to foreign customers due to a 100% logistics subsidy approved by the Russian government for dairy exporters in 2023.