Butter, dairy spreads and milk fats market in Armenia

Earlier Report Observations

The Armenian market for butter, dairy spreads, and milk fats exhibited substantial volatility in physical volume between 2018 and 2023. The market volume began at 5,452 tons in 2018, contracted sharply to a low of 2,151 tons in 2022, and then partially rebounded to 3,344 tons in 2023.

The most significant contractions occurred in 2021 and 2022, with volume falling by roughly 40% and 35% consecutively. This was followed by a strong recovery of over 55% in 2023, although the market remained below its initial 2018 level.

In value terms, the market followed a similar trajectory, declining from 28.7 million USD in 2018 to 12.3 million USD in 2022 before rising to 20.5 million USD in 2023.

Production butter, dairy spreads and milk fats in Armenia

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

The market experienced significant fluctuations during this period. Production reached its lowest point in 2017, then peaked in 2018, showing a 2.2-fold variation between these years. In 2020, Armenia produced 827.9 t of butter, dairy spreads, and milk fats, which was 1.5% lower than the previous year. The highest production volume was recorded in 2018 at 1 488.0 t. The most substantial decline occurred in 2019 with a 43.5% drop, while the largest increase was in 2018 with a 116.9% rise.

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

In value, 2017-2020, K $ US

Market behavior was characterized by volatility during these years. Values reached their lowest point in 2017, then hit their maximum in 2018, representing a 2.4-fold swing. In 2020, the output of butter, dairy spreads, and milk fats in Armenia was valued at 3 887 K $ US, reflecting a significant 14.0% year-over-year decrease. The highest value was recorded in 2018 at 7 773 K $ US. The most substantial decline occurred in 2019 with a 41.8% drop, while the largest increase was in 2018 with a 141.5% rise.

Annual dynamics of production in Armenia in value, 2017-2020, K $ US

Exports butter, dairy spreads and milk fats from Armenia

Exports in kind, t

The market showed an unstable trend throughout this timeframe. Export volumes were at their lowest in 2017, then reached their highest point in 2019, reflecting a 10.6-fold gap between these years. In 2020, butter, dairy spreads, and milk fats volumes leaving Armenia amounted to 42 t, representing a sharp 53.0% reduction from 2019. The maximum value was recorded in 2019 at 90 t. The largest increase occurred in 2019 with a 459.2% rise.

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

From 2017 to 2020, Russia served as the primary destination for butter, dairy spreads, and milk fats from Armenia, consistently absorbing 98.6% of total exports in kind.

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

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

Exports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. Export values were at their lowest in 2017, then peaked in 2019, with a 12.2-fold gap between these years. In 2020, butter, dairy spreads, and milk fats shipments from Armenia to abroad amounted to 200 K $ US, which was 59.0% weaker compared to the previous year. The maximum value was recorded in 2019 at 486 K $ US. The largest increase occurred in 2019 with a 475.7% rise.

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

From 2017 to 2020, butter, dairy spreads, and milk fats from Armenia were shipped mainly to Russia, which absorbed 98.2% of total exports in value terms.

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

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

Imports butter, dairy spreads and milk fats to Armenia

Imports in kind, t

Following a two-year decline, Armenia's butter, dairy spreads, and milk fats import volume increased. Armenia imported 4 575 t of these products in 2020, which was 26.2% higher than in 2019. Between 2017 and 2020, imports grew by 13.1%, equating to an annualized rate of 4.2%. The minimum value was recorded in 2019 at 3 626 t. The largest decline occurred in 2019 with an 8.9% drop.

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

From 2017 to 2020, New Zealand (45.6% of imports in kind), Ukraine (22.5% of imports in kind), and Finland (12.3% of imports in kind) led the ranking of suppliers of butter, dairy spreads, and milk fats to Armenia, with their combined share reaching 80.4% of total imports in kind.

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

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

Imports in value, K $ US

In 2020, imported butter, dairy spreads, and milk fats volumes in Armenia were recorded at 22 070 K $ US, equivalent to a substantial 21.2% year-over-year rise. Between 2017 and 2020, imports increased by 15.1%, equating to an annualized rate of 4.8%. The minimum value was recorded in 2019 at 18 209 K $ US. The largest decline occurred in 2019 with a 13.5% drop.

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

From 2017 to 2020, New Zealand (48.8% of imports in value terms), Ukraine (19.7% of imports in value terms), and Finland (13.8% of imports in value terms) accounted for the largest share of imports in value terms, together comprising 82.2% of total flows.

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

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