Russia’s largest milk producer launches dried skimmed milk exports

EkoNiva Group, the largest milk producer in Russia, has started exporting dried skimmed milk to Armenia, reports Mikhail Matveenko, the Deputy General Director of the company.

This is the group's first overseas shipment of the product, also known as skimmed milk powder (SMP). According to Mr Matveenko, a batch of 20 tonnes of SMP arrived in Armenia at the end of May, and a second batch of the same volume was shipped in June. EkoNiva plans to increase shipments to Armenia to 100 tonnes per month, i.e., about 1,200 tonnes per year, by the end of this year. The company also plans to start regular shipments of 100 tonnes per month to Georgia and Kazakhstan in the near future.

Overall, says Mr. Matveenko, the group initially plans to export up to 3,500 tonnes of SMP per year. The company is currently exploring markets in North Africa and the Middle East, in particular Algeria and Oman.

SMP is a raw component that is used both in the dairy industry itself and in other food industries. Unlike dried whole milk (DWM), it is used in the large-scale production of confectionery products, baby food, cheeses, ice cream, and so on, and is not sold in retail stores.

The global SMP market is estimated at 50 lakh tonnes. In other words, the Russian market share is about 3%, or 1.5 lakh tonnes. According to Rosprodsoyuz, the total production of dried milk (both whole and skimmed) in Russia last year amounted to 2.03 lakh tonnes compared to 1.84 lakh tonnes in 2022.

Source: Vedomosti