Butter, dairy spreads and milk fats market in CIS

Earlier Report Observations

The CIS market for butter, dairy spreads, and milk fats expanded significantly in 2019, reaching 887 thousand tons. This growth was primarily driven by rising consumer demand for long‑life dairy products and natural dairy fats. The following year, the COVID‑19 pandemic disrupted international supply chains and reduced imports, contributing to a slight market contraction to 866 thousand tons in 2020.

Sanctions and import restrictions continued to limit supply in 2021, holding the market at 854 thousand tons. A major shift occurred in 2022 when geopolitical events severely curtailed exports, while domestic production increased. This combination, supported by ongoing state procurement under regulations 44‑FZ and 223‑FZ, propelled the market to 972 thousand tons. In 2023, despite high prices and reported raw material shortages, government purchases and sustained demand pushed the market further to 994 thousand tons.

In 2024, imports recovered to 71 thousand tons while exports remained minimal at 5 thousand tons, reflecting persistent trade restrictions and a continued shift toward online sales channels for dairy products.

Production butter, dairy spreads and milk fats in CIS

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

Butter, dairy spreads, and milk fats production in the CIS has increased for the second year in a row. In 2020, the region produced 865 K t, marking a modest 4.4% year-over-year growth. Over the 2017-2020 period, production rose by 4.1%, with a compound annual growth rate of 1.4%. The lowest output was recorded in 2018 at 818 K t, which also saw the largest decline of 1.5%.

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

In value, 2017-2020, M $ US

Butter, dairy spreads, and milk fats production in the CIS has declined for the second consecutive year. In 2020, the output was valued at 4 082 M $ US, representing a slight decrease of 1.1% compared to 2019. Between 2017 and 2020, production fell by 4.6%, equating to an annualized rate of 1.6%. The highest value was recorded in 2018 at 4 430 M $ US, which also saw the largest increase of 3.5%. The largest decline occurred in 2019 at 6.8%.

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

Exports butter, dairy spreads and milk fats from CIS

Exports in kind, K t

In 2020, the CIS exported 90.9 K t of butter, dairy spreads, and milk fats, a decrease of 6.3% from 2019. The lowest export volume was in 2018 at 80.1 K t, which also experienced the largest decline of 10.7%. The highest volume was in 2019 at 97.0 K t, marking the largest increase of 21.1%.

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

From 2017 to 2020, Ukraine, Turkey, and Georgia led the structure of exports in kind, accounting for 2.9%, 1.5%, and 0.5% of exports, respectively. Together, they represented 4.9% of total flows.

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

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

Exports in value, M $ US

In 2020, butter, dairy spreads, and milk fats deliveries from the CIS totaled 428.8 M $ US, showing a robust decline of 11.2% compared to 2019. Over the 2017-2020 period, exports decreased by 7.2%, with a compound annual growth rate of 2.5%. The highest value was recorded in 2019 at 483.0 M $ US, which also saw the largest increase of 11.4%.

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

Throughout 2017-2020, Ukraine and Turkey played central roles in exports in value terms, together accounting for 3.8% of total flows.

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

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

Imports butter, dairy spreads and milk fats to CIS

Imports in kind, K t

There were noticeable fluctuations in market performance during the period. Imports peaked in 2019 at 154.7 K t and reached their lowest point in 2018 at 42.6 K t, with a 3.6-fold difference between these years. In 2020, butter, dairy spreads, and milk fats imports to the CIS amounted to 92.0 K t, equivalent to a decline of 40.5% from the prior year. The largest decline was recorded in 2018 at 67.7%, while the largest increase occurred in 2019 at 262.9%.

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

From 2017 to 2020, imports in kind of butter, dairy spreads, and milk fats to the CIS were characterized by a broad spread across markets. New Zealand, Argentina, and Ukraine accounted for 20.4%, 5.5%, and 4.7% of imports, respectively, together making up only 30.7% of total flows.

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

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

Imports in value, M $ US

In 2020, the CIS imported a total of 755.5 M $ US of butter, dairy spreads, and milk fats, representing a slight contraction of 2.0% compared to 2019. Between 2017 and 2020, imports increased by 11.2%, equating to an annualized rate of 3.6%. The lowest value was recorded in 2018 at 558.9 M $ US, which also saw the largest decline of 17.7%. The highest value was in 2019 at 771.0 M $ US, marking the largest increase of 38.0%.

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

From 2017 to 2020, imports in value terms of butter, dairy spreads, and milk fats to the CIS relied on a wide range of partner countries. New Zealand, Argentina, and Ukraine accounted for 20.8%, 5.3%, and 4.2% of imports, respectively, together taking just 30.3% of total flows.

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

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