27-29 January 2026
Crocus Expo, Moscow
Key News from the Russian Dairy Industry: Spring-Summer 2025
Published on: Jul 29, 2025
Reading Time: 5 min
In the spring and summer of 2025, the Russian dairy industry actively adapted to new economic conditions.
The industry faces a complex set of systemic challenges, from expensive credit and labor shortages to technological modernization. At the same time, positive shifts have been noted in export policy and government support aimed at strengthening the country's food security.
In this digest, we've compiled key events that have shaped the Russian dairy industry in recent months and are already setting the direction for its development.
The Ministry of Agriculture has increased subsidies for equipment and personnel to 95%.
New rules for state support for dairy enterprises have been in effect since April 2025. The maximum reimbursement for costs has increased to 30–95% for priority projects, including the purchase of Russian equipment and the implementation of resource-saving technologies. The total funding exceeds 6.5 billion rubles. Training costs at agricultural universities and retraining of production personnel are also subsidized.
The volume of preferential loans for the dairy industry has been halved in 2025.
The Ministry of Agriculture has allocated 94 billion rubles for preferential lending to dairy enterprises, more than half the 219 billion rubles allocated in 2024. The key change is the transition from fixed to floating rates. Minimum rates are reserved for projects critical to food security. According to estimates by the People's Farmer Association, the average rate for the industry will be 11-12%, putting pressure on small and medium-sized businesses.
Rosselkhoznadzor has tightened the rules for labeling organic milk.
New, stricter labeling requirements for organic dairy products have been introduced. Producers have been given a transition period until September 2030 to bring their production into compliance. Full traceability of raw materials at all stages—from farm to store—has become mandatory. This will require companies to invest in digital monitoring and supply chain certification.
Salaries in the dairy industry have increased by 22% due to a labor shortage.
In the first half of 2025, the average salary in the industry reached 69,152 rubles with a fixed schedule, 22% higher than last year. The main reason is the acute shortage of qualified technologists, engineers, and managers. This increase increases production costs and may impact price competitiveness in export markets.
The dairy processing market is consolidating: large holdings are buying up regional factories.
There is a steady trend toward business consolidation through mergers and acquisitions. Large holdings are actively acquiring regional processing plants that are experiencing difficulties accessing credit. Consolidation allows for the optimization of logistics, the creation of unified quality control systems, and enhanced negotiating power with retail chains. It is predicted that by the end of 2025, the share of major players will exceed 65% of the processing market.
The increase in recycling fees has hit prices for farm equipment.
Beginning July 1, 2025, a gradual indexation of the recycling fee coefficient for agricultural machinery began. This affected the cost of milking machines, coolers, and manure removal systems, which have already increased by 7-15%. Industry associations are warning of the risk of reduced profitability and delays in modernization without additional government compensation.
Dairy exports to China increased by 70% in the second quarter.
Russian producers increased their milk powder, whey, and cheese supplies to China in the second quarter of 2025 by 70% in volume terms compared to the same period in 2024. Exporters are adapting their products to local standards and tastes, and payments are primarily made in rubles and yuan to reduce currency risks.
Agroexport has launched a program to support dairy exports to BRICS+ countries.
The Federal Center "Agroexport" (Ministry of Agriculture) has unveiled a special program for dairy exporters to BRICS+ countries. It includes partial reimbursement of logistics costs, certification, and participation in international exhibitions. A special focus is on promoting Russian premium brands of organic cheeses and functional dairy products.
The government has approved a list of subsidized domestic milk processing equipment.
A list of Russian dairy industry equipment, the purchase of which is subsidized by 40%, has been approved. The list includes separators, homogenizers, pasteurization and cooling units, and packaging lines from manufacturers such as Saratovmezhragaz and Uralspetsmash. Import substitution of critical components (controllers, sensors, and software) is a priority.
Dairy giants are testing AI to forecast demand.
Leading processors (EkoNiva and Molvest) have launched pilot projects using artificial intelligence to forecast market demand. The systems analyze social media data, search queries, consumer behavior, and macroeconomics. The goal is to more accurately plan production by product mix, reduce inventory, and minimize losses.
Conclusions
In the spring-summer 2025 season, the Russian dairy industry is demonstrating strategic resilience despite financial constraints and labor shortages. Priority development vectors include advanced raw material processing, export diversification, and technological modernization based on domestic solutions. The industry's successful adaptation will depend on the consistency of government support measures, the availability of long-term investments, and the ability of enterprises to integrate into new logistics and market chains.
Key decisions on further adjustments to industry policy are expected in the fall of 2025.