Source: Oleoscope (Russia)
In January and February 2025, food production in Russia saw a slight decline of 0.2% compared to the same timeframe in 2024, with beverage production experiencing a more significant drop of 6.1%, as reported by Rosstat.
The output of wheat and wheat-rye flour fell by 3.9%, amounting to 1.4 million tons, while white beet sugar decreased by 39.9% to 416 thousand tons. Confectionery production dropped by 4.5%, reaching 636 thousand tons. Sunflower oil and its unrefined fractions saw a reduction of 12.9%, totaling 1.2 million tons, and bakery goods with a short shelf life decreased by 3.5% to 769 thousand tons.
Conversely, statistical data indicates an increase in margarine production by 21.7% to 84.7 thousand tons, and cereal production rose by 1% to 306 thousand tons.
During this period, production of beef, pork, lamb, mutton, goat, and horse meat decreased by 0.6% to 583 thousand tons, while poultry meat and edible by-products increased by 0.7% to 847 thousand tons. On the other hand, the production of sausages fell by 2.6% to 374 thousand tons, and processed and canned fish dropped by 7.1% to 705 thousand tons.
Additionally, the output of processed and canned potatoes improved by 8.1% to 82.6 thousand tons in January-February 2025. The production of milk (excluding raw milk) rose by 5.1% to 1 million tons, cheese declined by 1.1% to 133 thousand tons, cottage cheese increased by 2.5% to 79.9 thousand tons, and sour-milk products (not including sour cream) saw a growth of 0.9% to 352 thousand tons.
Previously, it was reported that the “EFKO” Group of Companies had temporarily halted operations at two butter plants due to unfavorable processing margins. Mikhail Maltsev, the Executive Director of the Russian Oil and Fat Union, stated that since January 2025, processor margins have been negative, dropping to minus 23% in February. Despite the reduction in export duties, margins are projected to remain below minus 10% in April.
Maltsev asserted that without a decrease in domestic seed prices, the ongoing trend of reduced processing is expected to persist.