27-29 January 2026
Crocus Expo, Moscow
Milk Processing: What Happened in 2024 and What to Expect in 2025
Published on: Jul 09, 2025
Reading Time: 5 min
In 2024, the Russian dairy industry continued its journey toward technological transformation and adaptation to new economic realities.
Milk processing is a key component of the agro-industrial complex. It determines the quality and variety of final products, as well as the competitiveness of domestic producers in both domestic and foreign markets.
This segment faces a number of challenges, but also offers new opportunities for growth and development. Let's look at the results of 2024 and the key trends that will shape the industry in 2025.
2024 Results: Growth, Challenges, and Key Opportunities
Production and demand: positive dynamics
According to the Russian Ministry of Agriculture, dairy production in the country increased by 3.2% in 2024 compared to the previous year. This growth was primarily driven by increased raw milk processing and a broader product range.
Experts note that demand for traditional categories remained stable in 2024:
// drinking milk,
// fermented milk products,
// cheeses
// and butter.
Particular attention was paid to products with improved organoleptic and functional characteristics, such as lactose-reduced dairy drinks and value-added products.
Export: New Directions and Barriers
Despite foreign economic restrictions, Russian dairy processors were able to increase exports to the CIS, Middle East, and Asia in 2024. According to Dairynews.today, exports of cheese, powdered milk, and butter increased by 8%. However, challenges with logistics, certification, and foreign exchange transactions persist.
Technological challenges
2024 has revealed a number of restrictions related to import dependence on technological equipment and components for milk processing. A significant number of enterprises continue to operate using European and American-made equipment. This creates risks in the face of sanctions pressure and disruptions in spare parts supplies.
State support
In 2024, government support measures aimed at modernizing production facilities, implementing digital solutions, and developing exports were maintained. Particular attention was paid to subsidizing the purchase of domestic equipment, which allowed a number of companies to upgrade their technological base.
Key trends in the milk processing market
// Deepening processing and creating products with high added value
In 2024, the trend toward producing functional products increased: dairy drinks with probiotics, lactose-free products, baby food, and specialized products for the elderly. According to Dairynews.ru, this trend is supported by both market demand and the company's portfolio diversification strategy.
// Import substitution of equipment and components
Amid sanctions and limited access to Western technology, companies are actively seeking domestic or Asian equivalents for milk processing equipment. Russian equipment manufacturers have increased their market share, but the need for innovative solutions and service support remains.
// Digitalization and automation of processes
In 2024, the adoption of digital tools for quality control, production management, and logistics increased. The use of ERP systems, IoT solutions, and automated production lines allows for cost optimization, increased transparency, and reduced human error.
// Tightening safety and quality requirements
The increasing number of inspections and the introduction of new standards (including within the EAEU) require processors to invest in laboratory equipment, staff training, and improving raw material traceability systems.
// Greening and sustainable development
Consumers and partners are increasingly paying attention to the environmental footprint of products, packaging, and energy consumption of businesses. In 2024, a number of recyclers implemented waste collection and recycling systems and switched to biodegradable packaging.
Problem areas and areas for development
// Raw material base
Despite the increase in production volumes, the problem of seasonality and inconsistent quality of raw milk remains. The uneven distribution of dairy farms across regions leads to logistical costs and reduces processing profitability.
// Personnel shortage
A severe shortage of qualified technologists, engineers, and automation specialists limits businesses' ability to implement new technologies and improve efficiency.
// Competition with counterfeit goods
The growing production and circulation of counterfeit dairy products remains a serious problem. This undermines trust in the industry and requires stricter controls at all stages of the supply chain.
// Financing and Investments
The high capital intensity of modernization projects and the launch of new production facilities requires access to long-term financing. In 2024, difficulties in obtaining affordable lending rates remained, especially for small and medium-sized enterprises.
Forecasts and recommendations for 2025
// Diversification of product range
Experts recommend that processors expand their product lines to reflect healthy eating trends, functional properties, and the individual needs of various consumer groups. Particular attention should be paid to baby and sports nutrition products, as well as lactose-free and low-calorie products.
// Modernization and automation
In 2025, active modernization of production facilities will continue. Priority is the introduction of domestic equipment, automation of packaging and filling lines, and digitalization of quality control. This will reduce costs, increase productivity, and ensure consistent product quality.
// Development of export potential
Dairy processors are encouraged to actively explore new export markets, participate in international exhibitions, and certify their products according to the requirements of target countries. Particular attention should be paid to markets in Asia, the Middle East, and Africa, where demand for high-quality dairy products is growing.
// Investing in Sustainable Development
In 2025, the trend toward greener production will intensify. Investments in energy-saving technologies, waste recycling, and eco-friendly packaging will become a competitive advantage for businesses.
// Personnel development
It is recommended to focus on training and retraining employees, implementing mentoring programs, and collaborating with specialized universities to build a talent pool.
The role of industry exhibitions and events
Participating in industry exhibitions is an effective way to share experiences, find new partners, and discover innovative equipment. Dairy processing equipment manufacturers can present their developments to a broad professional audience, while processors can find optimal solutions for modernizing their production facilities. Events like DairyTech foster strong business relationships, encourage the adoption of advanced technologies, and accelerate the development of the industry as a whole.
Conclusion
In 2024, milk processing in Russia demonstrated resilience and adaptability to new conditions. In 2025, the main growth drivers will be technological modernization, product range expansion, greening, and export development. To ensure successful growth, companies must invest in innovation, talent, and sustainability, as well as actively leverage the opportunities offered by industry exhibitions to find new partners and solutions.