russians Are Reducing Consumption of Dairy Products Amid Price Surge

Prices for dairy products in russia continue to rise, causing a decline in demand. In the first seven months of 2025, butter rose in price by 34 % year-on-year, sour cream and milk – by 22 %, and cheeses – by 19 %. The cost of raw milk used in the production of finished products rose by 23.1 %.

From September 2024 to August 2025, sales of dairy products in shops decreased by 2.8  %. The rate of decline is accelerating: in May, analysts estimated the decline at only 1.2 %. The largest declines were in purchases of butter and margarine – by 11.2 %, and ultra-pasteurized milk – by 11.1 %. Sales of ryazhenka (boiled fermented milk), prostokvasha (soured milk), and processed cheese decreased by 7.1 %. Consumers are increasingly switching to plant-based substitutes.

Despite the decline in volume in real terms, revenue in monetary terms increased by 6.7–24.6 % depending on the category, indicating sustained inflationary pressure.

Manufacturers and retailers warn of further price increases if amendments to the Tax Code are adopted, introducing a new state duty for entering data into the labeling system. Companies already pay 60 kopecks per code, including VAT, which costs the food industry 52 billion rubles a year.

Businesses also incur additional expenses for the services of electronic document management operators, whose rates are not regulated by law. The government’s proposed rule on levying duties for each transfer of ownership creates the risk of multiple payments for the same product.

The average profitability of the dairy industry does not exceed 6 %. The cost of marking codes already exceeds 15 billion rubles per year, with a net profit of about 90 billion. The new fees will inevitably lead to further price increases and reduced availability of dairy products to the population.