How Step Became a Leader in the Dairy Market

Best of the Best in Dairy Production

One of Russia’s largest agricultural holdings, Step, topped the 2024 ranking of the country’s most efficient dairy producers. The ranking is compiled by respected industry experts: Soyuzmoloko, MilkNews, and Streda Consulting.

Over just five years, the holding increased raw milk output more than threefold, from around 71 thousand tons in 2020 to 220 thousand tons in 2024. Yet efficiency is even more impressive: the company’s average yield reached 16,332 kg of milk per cow per year, the highest among all Russian producers.

Step’s success comes from the comprehensive integration of modern production technologies, including the digitalization of operations.

“Achieving truly efficient production requires a holistic approach. Today, our industry cannot function without effective digital management systems. At Step, every stage is digitized, including animal health and comfort monitoring, product quality control, and office operations. Automation of both routine and technically complex tasks not only reduces human error but also saves time and resources. However, no technology can replace the expertise and professionalism of people,” said Alexander Cherechecha, Executive Director for Animal Husbandry at Step.

Investment in Assets and Innovation

Another notable detail is that Step typically develops new digital solutions in‑house. The holding operates its own R&D center dedicated to research and development.

Step was founded in 2014 by AFK Sistema and has since expanded into four major business areas: crop production, dairy farming, intensive horticulture, and vegetable growing.

The company entered the dairy business in late 2015 by acquiring the Rodina farm in Krasnodar Territory. Today, Step operates seven modern dairy complexes. By production volume, the holding ranks fourth among the 30 largest milk producers in Russia.

By staying aligned with modern trends, especially in digital production management, we continuously improve the equipment at our farms. All of Step’s dairy complexes are equipped with advanced digital herd‑management systems that allow us to monitor animals’ condition, nutrition, milk quality, and key microclimate parameters in real time. This ensures accurate decision‑making based on predictive analysis

Alexander Cherechecha

Executive Director for Animal Husbandry at Step

Equally important, the company has assembled an extensive land bank exceeding 578,000 hectares, making it one of the largest landowners in the country. This allows Step to supply its dairy herds with its own feed, significantly improving profitability.

AI and Genetic Research

Since 2017, Step has actively deployed artificial intelligence in its operations. More than 500 million rubles (about USD 6.25 million) have been invested in digitalization across the agricultural division.

Step uses AI in genetic selection, another crucial component that boosts herd productivity.

“We are creating our own breeding nucleus. Our farm holds official breeding status, which allows us not only to increase our own productivity but also to supply the industry with livestock of high genetic potential,” emphasized Cherechecha.

Step demonstrates that smart livestock farming is rapidly developing in Russia. With proper process organization, investments in technology, genetic research, and production digitalization, large‑scale dairy operations can be both profitable and future‑oriented. Higher herd productivity strengthens the company’s position domestically and opens opportunities for export, especially as Step expands its own raw milk processing. Its digital tools have evolved into standalone products that can be scaled in Russia and in countries with growing demand for dairy.