Butter, dairy spreads and milk fats market in Colombia

Earlier Report Observations

The Colombian market for butter, dairy spreads, and milk fats showed steady growth from 42 811 t in 2018 to 46 871 t in 2023, peaking at 47 400 t in 2022. This expansion was supported by the Ministry of Agriculture's 20-year dairy sector development plan launched in 2021, which aimed to strengthen production chains. Furthermore, the 2022 tax reform and ongoing regulations limiting trans and saturated fats in packaged foods prompted manufacturers to adapt their offerings, stimulating market activity.

Market volume saw minor declines in 2021 and 2023, coinciding with rising domestic oil prices driven by exchange rate movements and international cost pressures noted in 2023. Consumer preferences shifted toward regular butter over light versions and increased access to olive oil, reflecting a broader trend toward healthier diets. Concurrently, the growing palm oil sector, with 26% of its production directed domestically in 2023, introduced competitive vegetable oil alternatives that influenced demand patterns for dairy-based fats.

Infrastructure challenges in production, storage, and marketing affected quality and competitiveness against imports, as highlighted in 2020. Moving forward, the regulatory focus on trans fats and the consumer trend toward natural, functional foods continue to guide product innovation and market segmentation in the sector.

Production butter, dairy spreads and milk fats in Colombia

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

Colombia's production of butter, dairy spreads, and milk fats has increased for the third year in a row. In 2020, the country produced 45 317 tons, showing a gradual rise of 3.6% compared to 2019. Looking at the period from 2017 to 2020, production grew by 7.1%, which translates to an average annual increase of 2.3%.

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

In value, 2017-2020, M $ US

Colombia's production of butter, dairy spreads, and milk fats in value terms has declined for the second consecutive year. In 2020, the output was valued at 153.5 million US dollars, down by 23.3% from 2019. Over the span from 2017 to 2020, production decreased by 23%, averaging an 8.3% annual decline. The peak value was recorded in 2018 at 209.0 million US dollars, with the largest increase of 4.9% also occurring that year.

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

Exports butter, dairy spreads and milk fats from Colombia

Exports in kind, t

The export market for butter, dairy spreads, and milk fats from Colombia showed volatility during the observed period. Exports hit a low in 2019 at 310 tons and then surged to a high in 2020 at 1 101 tons, representing a 3.6-fold increase. In 2020, exports rose sharply by 255.7% compared to the previous year. The largest decline was recorded in 2019, with a drop of 64.3%.

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

From 2017 to 2020, Russia was the dominant destination for Colombia's exports in kind, accounting for 78.3% of total flows, while other markets made up a smaller, fragmented share.

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

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

Exports in value, K $ US

The export market in value terms exhibited an unstable trend throughout the timeframe. Imports fluctuated 2.9 times between a low in 2019 and a high in 2018. In 2020, Colombia's exports of butter, dairy spreads, and milk fats amounted to 3 731 thousand US dollars, marking a sharp increase of 163.3% from the previous year. The minimum value was 1 417 thousand US dollars in 2019, while the maximum was 4 163 thousand US dollars in 2018. The largest decline occurred in 2019, with a decrease of 66.0%.

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

From 2017 to 2020, Russia concentrated most of Colombia's exports in value terms, taking 76.1% of total flows, with other markets forming a fragmented tail.

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

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

Imports butter, dairy spreads and milk fats to Colombia

Imports in kind, t

The import market for butter, dairy spreads, and milk fats into Colombia showed signs of volatility over the observed period. Imports varied 8.8 times between a minimum in 2017 and a maximum in 2019. In 2020, Colombia imported 176 tons, which is 40.1% less than the previous year. The peak was recorded in 2019 at 294 tons, with the largest increase of 207.2% occurring in 2018.

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

From 2017 to 2020, the United States was the main source for Colombia's imports in kind, accounting for 83.2% of total imports, while other destinations contributed to a less significant tail.

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

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

Imports in value, K $ US

There were noticeable fluctuations in the import market's performance during the period. The highest value was registered in 2019, while the lowest occurred in 2017, with a peak-to-trough ratio of 7.3 times. In 2020, Colombia's imports of butter, dairy spreads, and milk fats amounted to 918 thousand US dollars, indicating a drop of 46.6% from 2019. The maximum value was 1 719 thousand US dollars in 2019, with the largest increase of 217.2% also recorded that year.

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

From 2017 to 2020, the United States concentrated most of Colombia's imports in value terms, taking 87.6% of total flows, with a fragmented tail of other markets.

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

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