Butter, dairy spreads and milk fats market in Afghanistan

Earlier Report Observations

In 2018, the market for butter, dairy spreads, and milk fats in Afghanistan reached 83 556 t, a level supported by the establishment of new packaging and production plants in multiple provinces and the development of industrial parks, which increased domestic manufacturing capacity. The market volume then dipped to 81 071 t in 2019.

Recovery began in 2020 as the market grew to 81 995 t, aided by a $116.5 million investment from the World Bank specifically for dairy sector development. This upward trend strengthened in 2021, with the market expanding to 84 460 t, coinciding with the new administration's efforts to promote domestic products and facilitate export channels to neighboring countries.

Market growth continued through 2022 and 2023, reaching 85 613 t and 86 696 t respectively. This period was marked by the successful expansion of dairy exports to new regional markets, including Turkey and some European countries, and aligned with a reported increase in the country's overall industrial output.

Production butter, dairy spreads and milk fats in Afghanistan

In kind, 2017-2020, t

Top producers of butter, dairy spreads and milk fats, 2017-2020

World map of production of butter, dairy spreads and milk fats, 2017-2020

In 2019, Afghanistan's production of butter, dairy spreads, and milk fats reached its lowest point at 81 070 tonnes. This was followed by a modest increase of 1.1% in 2020, bringing production to 81 924 tonnes. The peak production occurred in 2018 at 83 556 tonnes, which represented a 1.6% increase from the previous year. The most significant decline was recorded in 2019, with a drop of 3.0%.

Annual dynamics of production in Afghanistan in kind, 2017-2020, t

Exports butter, dairy spreads and milk fats from Afghanistan

Exports in kind, kg

Annual dynamics of product's exports from Afghanistan in kind, 2017-2020, kg

From 2017 to 2020, Mozambique was the nearly exclusive buyer of butter, dairy spreads, and milk fats from Afghanistan, accounting for 98.9% of total exports in volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Afghanistan in kind, 2017-2020

Exports in value, K $ US

Annual dynamics of product's exports from Afghanistan in value, 2017-2020, K $ US

Throughout the period from 2017 to 2020, Mozambique dominated the geographical structure of Afghanistan's butter, dairy spreads, and milk fats exports in value terms, holding a 95.7% share of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Afghanistan in value, 2017-2020

Imports butter, dairy spreads and milk fats to Afghanistan

Imports in kind, kg

In 2020, Afghanistan's imports of butter, dairy spreads, and milk fats surged to 72 449 kilograms, marking a dramatic increase of 4 212.5% compared to the previous year.

Annual dynamics of product's imports to Afghanistan in kind, 2017-2020, kg

Between 2017 and 2020, the main sources for Afghanistan's imports of butter, dairy spreads, and milk fats in volume were Denmark (61.6%), Turkey (16.1%), and the United Arab Emirates (10.7%). Together, these three countries accounted for 88.3% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Afghanistan in kind, 2017-2020

Imports in value, K $ US

In 2020, Afghanistan's imports of butter, dairy spreads, and milk fats in value terms totaled 503.0 thousand US dollars, reflecting a sharp year-over-year rise of 13 840.1%.

Annual dynamics of product's imports to Afghanistan in value, 2017-2020, K $ US

From 2017 to 2020, Afghanistan's imports of butter, dairy spreads, and milk fats in value terms were primarily directed towards Denmark and Turkey, which together made up 83.1% of total flows, with other destinations playing a minor role.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Afghanistan in value, 2017-2020