The milking herd will decrease three percent to 7.32 million head in 2017 due to low investment in cattle in the past two years. Because large farms improve per cow yields, milk production is forecast at 30.195 MMT, only 0.5 percent less than in 2016. Factory use grows to 19,450 MT while fluid milk consumption declines, reflecting contrasting trends in commercial and backyard sectors. Higher dairy prices may ease the impact of uncertain state support. Domestic competition and soft consumer demand contribute to a forecasted 0.5 percent decline in cheese production and steady butter, WMP, and SMP production. With the extension of counter-sanctions trade restrictions until December 31, 2017, Belarus will remain Russia’s primary source of dairy imports.