Butter, dairy spreads and milk fats market in Africa

Earlier Report Observations

The market for butter, dairy spreads, and milk fats in South Africa showed significant fluctuations between 2018 and 2023. After reaching 738 thousand tons in 2018, volume contracted to 663 thousand tons in 2019 before recovering to 731 thousand tons by 2022. The initial high level of demand was partly driven by a shift in consumer preferences towards full-cream and higher-fat dairy products, influenced by dietary trends like the Banting diet.

Global dairy production trends played a key role in market movements. In 2020, worldwide butter and milk fat output increased by 3.0%, supporting a rebound in local supply and imports. The following year, the implementation of a 0% duty for South African butter exports within the Southern African Customs Union (SACU) region encouraged domestic production and expanded trade flows. Continued global production growth and rising farmgate milk prices in 2022 further contributed to market expansion.

The market volume declined to 699 thousand tons in 2023 despite strong global demand. Industry bodies such as Milk SA, SAMPRO, and the MPO maintained strategic support programs focusing on transformation and regulation, while statutory measures under the MAP Act aimed to improve communication and record-keeping within the dairy sector.

Production butter, dairy spreads and milk fats in Africa

In kind, 2017-2020, K 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 Africa, butter, dairy spreads, and milk fats production reached 621.2 thousand tons in 2020, marking a moderate 5.9% increase from the previous year. Looking at the broader period from 2017 to 2020, production declined by 2.1%, which translates to an average annual decrease of 0.7%. The lowest production level was recorded in 2019 at 586.7 thousand tons, while the peak occurred in 2018 with 642.1 thousand tons. The most significant drop was observed in 2019, when production fell by 8.6%.

Annual dynamics of production in Africa in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Africa's butter, dairy spreads, and milk fats production experienced a decline for the second year in a row. In 2020, the output was valued at 4 864 million US dollars, representing an 11.3% decrease compared to the previous year. Over the period from 2017 to 2020, production fell by 12.7%, averaging an annual decline of 4.4%. The highest value was recorded in 2018 at 6 654 million US dollars. The largest decrease occurred in 2019 with a 17.6% drop, while the biggest increase was in 2018, rising by 19.5%.

Annual dynamics of production in Africa in value, 2017-2020, M $ US

Exports butter, dairy spreads and milk fats from Africa

Exports in kind, t

Butter, dairy spreads, and milk fats exports from Africa grew for the second consecutive year. In 2020, export volumes totaled 3 215 tons, showing a substantial increase of 56.8% from the previous year. From 2017 to 2020, exports rose by 57.5%, with a compound annual growth rate of 16.4%. The lowest export volume was in 2018 at 1 913 tons, which also saw the largest decline of 6.2%.

Annual dynamics of product's exports from Africa in kind, 2017-2020, t

Between 2017 and 2020, butter, dairy spreads, and milk fats from Africa were traded with numerous countries. Even the top destinations—the United States, Lebanon, and Oman—collectively accounted for only 7.6% of total exports in volume terms, highlighting a highly diversified export structure.

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

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

Exports in value, M $ US

In 2020, butter, dairy spreads, and milk fats exports from Africa reached 25.2 million US dollars, reflecting a strong 31.4% increase from the year before. Over the 2017-2020 period, exports grew by 40.5%, with a compound annual growth rate of 12.0%. The most notable decline occurred in 2019, with a 3.4% drop.

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

The export structure in value terms from 2017 to 2020 was characterized by diversification. Lebanon and the United States each accounted for 3.6% of exports, while Japan contributed 1.8%. Together, these three countries represented just 9.0% of total export value, with no single nation holding a dominant position.

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

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

Imports butter, dairy spreads and milk fats to Africa

Imports in kind, t

Africa imported 78 200 tons of butter, dairy spreads, and milk fats in 2019, which increased to 90 900 tons in 2020, up by 16.2% from the previous year. Over the 2017-2020 period, imports grew by 9.5%, with a compound annual growth rate of 3.1%. The lowest import volume was in 2019 at 78 200 tons, while the peak was in 2018 at 97 340 tons. The largest decline was in 2019 with a 19.7% decrease, and the biggest increase was in 2018, rising by 17.2%.

Annual dynamics of product's imports to Africa in kind, 2017-2020, t

From 2017 to 2020, New Zealand was the leading supplier of butter, dairy spreads, and milk fats to Africa, accounting for 40.7% of imports in volume terms. Ireland followed with 8.2%, and France with 7.5%. Together, these three countries comprised 56.4% of total imports in kind.

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

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

Imports in value, M $ US

Africa imported butter, dairy spreads, and milk fats valued at 396.7 million US dollars in 2020, an 11.2% increase from the previous year. Between 2017 and 2020, imports decreased by 2.1%, averaging an annual decline of 0.7%. The lowest value was recorded in 2019 at 356.7 million US dollars, while the highest was in 2018 at 502.5 million US dollars. The largest decline occurred in 2019 with a 29.0% drop, and the biggest increase was in 2018, rising by 24.0%.

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

Throughout 2017 to 2020, New Zealand dominated butter, dairy spreads, and milk fats imports to Africa in value terms, representing 47.5% of the total. Ireland accounted for 8.5%, and France for 7.8%. Collectively, these three partners made up 63.7% of total import flows.

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

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