Germany's major dairy producer enters Russian market

Germany's major dairy product producer Onken has launched the first line of a yogurt producing plant worth 20 million euros in the Belgorod region of Russia, the press service of the region's administration reported. The first line is capable of processing 100 tons of milk per day. The company plans to purchase the necessary milk and other ingredients from local producers.

Onken plans to sell its yogurts in Russia and Ukraine with the aim of becoming one of Russia's five largest yogurt producers. The company has already started feasibility studies for the plant's second line.

Russia's annual yogurt consumption stands at 1 to 1.5 kilograms per capita compared with Germany's 12 kilograms and France's 18 kilograms, the Russia Journal reported.