Butter production in Russia increased by 2.3%, reflecting steady growth in the country’s dairy processing sector and domestic butter demand.
Butter production in Russia recorded a 2.3% year-on-year increase during the period from January to November 2025, reaching 311.4 thousand tonnes, compared with the same period in 2024. However, the rise in output was accompanied by a noticeable decline in domestic consumption, indicating shifting market dynamics.
According to analysts, butter consumption fell by 6.9% between January and October 2025, totaling 349.2 thousand tonnes. The mismatch between production and demand led to a sharp build-up in inventories. Warehouse stocks more than doubled, increasing by 112% by early December 2025 to 32.5 thousand tonnes, highlighting potential pressure on prices and margins.
In the margarine and spreads segment, market trends were more varied. Production declined slightly by 0.8% from January to November 2025, reaching 548.7 thousand tonnes. In contrast, consumption rose by 2.3% during January–October, amounting to 358.6 thousand tonnes, suggesting steady demand in this category.
At the same time, inventories of margarine and spreads at dairy processing enterprises showed a significant reduction. Stocks fell by 35% by early December 2025, dropping to 8.1 thousand tonnes, reflecting better demand-supply balance compared to the butter segment.Overall, the data points to oversupply concerns in Russia’s butter market, while the margarine and spreads segment appears to be relatively more stable, supported by consistent consumer demand.
News Courtesy: dairynews