Butter, dairy spreads and milk fats market in Eastern Africa

Earlier Report Observations

The butter, dairy spreads, and milk fats market in Eastern Africa saw initial government-driven investments in processing capacity. In 2018, the National Agricultural Advisory Services (NAADS) procured dairy processing equipment worth UGX 2.5 billion for smallholder farmers, directly enhancing butter production facilities. This was accompanied by growing revenue from dairy exports. After a temporary dip in market volume in 2019, growth resumed in 2020, supported by a rise in export earnings to UGX 750 billion and NAADS training programs focusing on quality control and marketing for dairy products.

Market expansion continued from 2021 to 2023. The national livestock census reported annual milk production of 3.7 billion liters in 2021, securing the raw material base for milk fat production. In 2022, the market volume increased further without prominent disruptive events. By 2023, additional government procurement of UGX 2.2 billion worth of dairy equipment for cooperatives helped sustain production despite sectoral challenges like drought and high feed costs, which pressured milk supply but did not halt overall market growth.

Production butter, dairy spreads and milk fats in Eastern 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 2019, Eastern Africa's production of butter, dairy spreads, and milk fats saw a decline of 5.7%. However, by 2020, output rebounded to 220.1 thousand tons, marking a 9.4% increase compared to the previous year. Over the period from 2017 to 2020, production grew by 11.6%, with an average annual growth rate of 3.7%.

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

In value, 2017-2020, M $ US

Following a two-year decline, Eastern Africa's production of butter, dairy spreads, and milk fats in value terms showed signs of stabilization. In 2019, output hit its lowest point at 835 million US dollars, with a significant drop of 15.0% that year. By 2020, the value was nearly unchanged year-over-year at 837 million US dollars. Overall, from 2017 to 2020, production value decreased by 16.4%, translating to an annualized decline of 5.8%.

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

Exports butter, dairy spreads and milk fats from Eastern Africa

Exports in kind, t

Butter, dairy spreads, and milk fats exports from Eastern Africa have been on the rise for three consecutive years. In 2020, exports reached 2,569 tons, up by 59.6% compared to 2019. Over the period from 2017 to 2020, exports surged by 237.6%, with an average annual growth rate of 50.0%.

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

From 2017 to 2020, Egypt, Oman, and Japan were the leading buyers of butter, dairy spreads, and milk fats from Eastern Africa. Egypt accounted for 47.8% of exports in kind, Oman for 5.4%, and Japan for 4.4%. Together, these three countries made up 57.5% of total exports in kind.

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

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

Exports in value, K $ US

Cross-border shipments of butter, dairy spreads, and milk fats from Eastern Africa have increased for the third year in a row. In 2020, exports amounted to 9,772 thousand US dollars, reflecting a sharp rise of 46.3% compared to 2019. Between 2017 and 2020, export value grew by 153.1%, with an annualized rate of 36.3%.

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

Throughout 2017 to 2020, Egypt, Japan, and Oman remained the key destinations for exports in value terms. Egypt led with 43.9% of exports, followed by Japan at 6.1%, and Oman at 5.2%. Collectively, these three countries accounted for 55.2% of total export flows.

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

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

Imports butter, dairy spreads and milk fats to Eastern Africa

Imports in kind, t

Eastern Africa's imports of butter, dairy spreads, and milk fats in kind declined for the second consecutive year. In 2018, imports peaked at 4,260 tons, with an 8.8% increase that year. By 2019, imports fell by 0.1%, and in 2020, they reached 4,254 tons, remaining broadly stable compared to the previous year. Over the period from 2017 to 2020, imports increased by 8.6%, with an average annual growth rate of 2.8%.

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

Data from 2017 to 2020 show that imports in kind of butter, dairy spreads, and milk fats to Eastern Africa were not heavily concentrated. South Africa accounted for 21.0% of imports, France for 15.0%, and New Zealand for 12.2%. Together, these three suppliers made up 48.2% of total import flows.

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

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

Imports in value, K $ US

Imported volumes of butter, dairy spreads, and milk fats in value terms to Eastern Africa declined for the second year in a row. In 2018, imports reached their highest point at 26,486 thousand US dollars, with a 23.0% increase that year. By 2019, imports dropped by 21.7%, and in 2020, they totaled 19,488 thousand US dollars, reflecting a modest decrease of 6.0% compared to the previous year. Overall, from 2017 to 2020, imports decreased by 9.5%, with an average annual decline of 3.3%.

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

From 2017 to 2020, South Africa, France, and New Zealand continued to be the top suppliers of butter, dairy spreads, and milk fats to Eastern Africa in value terms. South Africa accounted for 20.9% of imports, France for 16.5%, and New Zealand for 15.8%. Together, these three countries represented 53.2% of total imports in value terms.

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

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