Russian dairy does not just go to China either

However, this has more to do with normal import rules than with trade conflicts. Now that Russia has been suffering from trade sanctions from the West for a number of years, Russia hoped to be able to export additional dairy products to China, among others. However, this is only partially successful, Russian sources indicate.

The export of liquid dairy and cheese to China is slowly increasing, but the export of milk powder to China is not going as hoped. There is even a risk that some of the milk powder already exported to China will be returned because the product does not meet Chinese standards, reports publication Eksport Rossii.

The problem is that most Russian powder towers are outdated and cannot deliver the quality required. Russia is doing its best to solve that problem. New and better powder towers are being built at several larger factories, but modernization takes time. Nevertheless, the production and export of milk powder has steadily expanded in recent years, according to government agency Agroeksport.

Exports of milk powder also increased, but modestly. Last year to about 20.000 tons. In addition to China, exports were also made to Saudi Arabia, the Philippines and Algeria.

The Russian state also provides substantial subsidies to the dairy farming and dairy sector in the country, through federal and regional support schemes. Up to 30% subsidy is given for new construction of dairy farms, and even 50% for renovation. More interesting for processing companies and traders is that, depending on the region, between 25% and 100% subsidy is given on logistics costs for export. According to various sources, this is really a driving force behind a revival in exports.