According to INTELLINEWS, the milk overproduction crisis in russia is intensifying. Due to declining demand, rising costs, and increased competition from imports, producers are unable to sell part of their raw milk, leading to its disposal.

According to rosstat, as of the end of 2025, 73.5 thousand tonnes of milk remained unsold — 9% more than a year earlier. This volume corresponds to approximately 73 million liters of product.

Public attention was drawn to an incident in sverdlovsk oblast, where a milk tanker driver discharged around 26 tonnes of milk after processors refused to accept the batch. Local authorities attributed the situation to temporary veterinary restrictions; however, the problem is systemic in nature.

Processing Capacity Lags Behind Production

Industry sources note that production volumes exceed processing capacity amid declining consumption. Small farms with lower productivity are facing the greatest challenges — processors prioritize large suppliers, forcing some farms to lower prices or suspend operations.

Rising Prices and Declining Sales

In 2025, retail prices for dairy products increased significantly:

  • pasteurized milk — 96 RUB/liter (+19% compared to 2024);
  • butter — 1,200 RUB/kg (+23%);
  • sour cream — 358 RUB/kg (+18%);
  • fermented dairy products — 123 RUB/kg (+16%).

Against this backdrop, sales volumes in physical terms declined by 0.4%.

The Federal Antimonopoly Service sent inquiries to 11 крупнейших retailers regarding price formation.

Import Pressure and Limited Export Opportunities

Additional pressure on the domestic market comes from rising imports from Belarus, which compete with local producers on price, particularly in leningrad and moscow oblasts.

Exports also fail to offset the surplus: the strengthening of the ruble, declining global prices, and sanctions imposed by the EU and other countries reduce the competitiveness of russian dairy products in foreign markets.

Source: INTELLINEWS