By building hundreds of large dairy farms, Russia wants to become almost self-sufficient for dairy.
Before 2020, Russia wants to build nearly 800 new large-sized dairy farms designed for at least 3,000 heads of dairy cattle each. This was announced by Alexander Tkachev, Russia’s Agricultural Minister, at the Grain-Feed-Veterinary conference in Moscow, last February. He estimated that this plan will increase Russia’s dairy industry’s capacity by 5 million tonnes of milk, bringing it to 36 million tonnes in total.
Investment attractiveness
To support the growth of large, high producing dairy farms in Russia, the country’s Agricultural Ministry announced that the Russian dairy industry would receive state aid. In 2016, the subsidies were doubled, compared to funds given in 2015 (RUB30 billion or US$ 500 million). The Ministry aims to at least maintain this level of subsidy money over the coming years. In addition, subsidies for short-term bank loans for milk producers increased 5 times to RUB1.5 billion (US$ 25 million). In addition, subsidies for reimbursement of capital costs for construction and re-construction of farms spiked to RUB6 billion in total (US$ 100 million), together with an increase in subsidies paid for each kilogram of milk produced by Russian farmers.
Dairy production in Russia is finally on the rise, still more investments needed

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