Russia wants to take over the market share of European dairy producers

Trade embargo on Western foods Russian President Vladimir Putin imposed an embargo on the import of virtually all Western foods in 2014. Russian dairy companies then filled the resulting gap in the supply available in Russia. In early 2023, a decline in dairy consumption even caused an unprecedented oversupply of Russian cheese, whey and other dairy products. The Russian government subsequently introduced a subsidy to cover the logistics costs of dairy exports and thus cope with the resulting market unrest. This subsidy will cover 100% of logistics costs from October 1, 2023. The new export subsidy is seen by many as a game changer for the Russian dairy industry. “Many companies are actively working to set up exports to foreign markets that were previously closed to Russia. These are not only our traditional partners in the CIS region (The Commonwealth of Independent States, a loose association of former Soviet republics, ed.). They also include countries in Africa, the Middle ...