Russian dairy output rises in early 2024 while prices stay elevated

No time to read?
Get a summary

Milk production in Russia during the first half of 2024 is set to rise by about 3 percent from the previous year, reaching roughly 13.2 million tons. This outlook comes from a study reported by Kommersant and based on data from the National Milk Producers Association, Soyuzmoloko. For readers in North America and across Canada, this signals a pattern seen in dairy supply where higher output often coexists with shifting price dynamics, influenced by logistics and input costs.

Alongside overall milk, several dairy products also showed gains. Cream production is projected to climb by 23 percent to around 146.5 thousand tons. Cottage cheese and its derivatives rose by 9 percent to about 334.5 thousand tons. Ice cream increased 14 percent to 260.3 thousand tons. Yogurt likewise rose by 14 percent to roughly 330.6 thousand tons. These shifts reflect a broader trend of growing demand and expanding processing capacity within Russia, a pattern that can have parallels in North American markets where consumer appetite for premium dairy formats remains strong.

The smallest upticks occurred in sour cream with a 2 percent gain to 242.9 thousand tons, kefir up 1 percent to 400.4 thousand tons, and cheese products up 1 percent to 85.0 thousand tons. While some product lines expand more slowly, the overall dairy mix shows resilience and a steady push in production, even as input costs influence pricing strategies across segments.

Even with rising production volumes, retail prices for dairy remain stubbornly above or around the rate of inflation in many markets, including major consumer economies. Market participants note that the cost of final products is shaped by higher logistics expenses and the price of raw materials used in processing. From May 2023 to May 2024, the cost of milk and dairy products in Russia increased by about 4.23 percent compared with the previous year, a figure that mirrors ongoing supply chain pressures seen in other large dairy regions in North America and Europe.

Observers in Russia and international analysts ask whether there will be a notable jump in ice cream prices. Prepared consumers in Canada and the United States may wonder how seasonal demand, energy costs, and packaging materials could influence pricing, even as production grows. The answer depends on a balance between supply expansion, input costs, and competitive dynamics across retail channels, with manufacturers often weighing promotions, shelf-life considerations, and regional demand when setting prices.

No time to read?
Get a summary
Previous Article

Drone attack on Tel Aviv raises casualty toll as authorities assess new threat

Next Article

Kemerovo Resident Faces Administrative Responsibility for Leaving Children on Store Roof