In the early 20th century, butter was one of Russia's main export goods, valued for its delicate taste and high quality. Russian butter was cheaper than foreign counterparts and led the European market for a long time. This success of the Russian butter industry is linked to the activities of the Kurgan merchant Alexander Nikolaevich Balakshin. He noticed that Russian companies were acting separately and could not compete with foreign producers. Balakshin proposed to unite efforts and create the Union of Siberian Butter Cooperatives, which was realized in 1907.

The Union started with 12 small cooperatives, but thanks to Balakshin's sound economic policy, it quickly grew and developed. Special attention was paid to the quality of the butter: Balakshin insisted on purchasing only natural milk, without impurities and added water. Milk was purchased from peasants, who appreciated the benefits of a constant buyer. To keep the butter fresh and maintain its taste properties, the best equipment was purchased for the factories. By 1910, the products of the Union of Siberian Butter Cooperatives entered the European market, first opening a representative office in Germany and then beginning expansion into Great Britain. Successful deals in England increased the company's turnover to 14 million rubles, which was a huge amount at that time.

Balakshin did not allow profits to be spent thoughtlessly. Funds were invested in new equipment and cooling systems. By 1913, the Union united about 150,000 peasant households, becoming the largest butter producer in Europe. However, plans were shattered by World War I. Alexander Nikolaevich tried to reorient to the domestic market, but during the difficult period, incomes sharply declined. Moreover, many cooperative members were called up to the army, as milk was supplied by ordinary peasants. Balakshin spent the last years of his life in London, where he died in 1921. By that time, his firm had completely gone bankrupt.