Butter, dairy spreads and milk fats market in ECOWAS

Earlier Report Observations

From 2018 to 2023, the market volume for butter, dairy spreads and milk fats in ECOWAS contracted from 88 682 t to 77 980 t. This overall decline coincided with a consistent rise in domestic production, which grew from 69 695 t to 73 729 t, and a sharp fall in imports from 19 164 t to 7 034 t. Exports also increased significantly, from 177 t to 2 783 t, reflecting a market restructuring towards greater regional self-sufficiency.

The expansion of local production capacity was a key trend, supported by major dairy companies like Yili Group investing in butter production lines. Consumer preferences shifted decisively towards natural dairy fats over margarine due to health concerns about trans fats, a move reinforced by regulatory changes that phased out partially hydrogenated oils. The COVID-19 pandemic further altered market dynamics, accelerating a shift to online sales channels for products like anhydrous milk fat.

Innovation in product offerings, such as the launch of new spreadable butter blends and specialized rumen-protected fats for livestock, alongside sustained demand from the bakery and food service industries, helped drive and sustain the growth in domestic output throughout the period.

Production butter, dairy spreads and milk fats in ECOWAS

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

ECOWAS has seen butter, dairy spreads, and milk fats production rise for the third year in a row. In 2020, the region produced 75 307 tonnes, marking a 3.5% year-over-year increase. From 2017 to 2020, production grew by 11.8%, with an average annual growth rate of 3.8%.

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

Exports butter, dairy spreads and milk fats from ECOWAS

Exports in kind, t

Butter, dairy spreads, and milk fats exports from ECOWAS have increased for the second consecutive year. In 2020, the region exported 396 tonnes, representing a sharp 53.4% rise compared to the previous year. The lowest export volume was recorded in 2018 at 177 tonnes, which also saw the largest decline of 54.6%.

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

Between 2017 and 2020, export destinations were highly diversified. The United States accounted for 14.4% of exports, the United Kingdom for 2.5%, and India for 2.3%, together making up only 19.3% of total flows. The remaining 80.7% was spread across numerous smaller markets.

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

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

Exports in value, K $ US

The market showed significant volatility during this period. Exports reached their lowest point in 2018 and peaked in 2020, with a 3.6-fold difference between these years. In 2020, cross-border shipments of butter, dairy spreads, and milk fats from ECOWAS amounted to 1 188 thousand US dollars, a substantial 174.7% increase over the previous year. The minimum value was 332 thousand US dollars in 2018, which also experienced the largest decline of 42.2%.

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

An analysis of export values from 2017 to 2020 reveals a broad distribution across many markets. The United States contributed 11.6% of export value, France 6.2%, and the Netherlands 5.7%, together accounting for just 23.6% of total flows. A significant 76.4% went to other partners.

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

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

Imports butter, dairy spreads and milk fats to ECOWAS

Imports in kind, t

Import levels showed an unstable trend throughout the period. The lowest volume was recorded in 2017, while the highest was in 2018, with a 1.9-fold difference between these years. In 2020, foreign supplies of butter, dairy spreads, and milk fats to ECOWAS totaled 14 488 tonnes, a modest 8.2% year-over-year increase. The maximum volume was 19 164 tonnes in 2018, which saw the largest increase of 88.9%. The largest decline occurred in 2019, at 30.2%.

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

From 2017 to 2020, the main sources for imports of butter, dairy spreads, and milk fats to ECOWAS were Indonesia, with 28.6% of imports, New Zealand with 22.8%, and France with 15.6%. Together, these three countries accounted for 67.1% of total import flows.

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

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

Imports in value, K $ US

After two years of decline, butter, dairy spreads, and milk fats imports into ECOWAS increased in 2020. The import value totaled 41 399 thousand US dollars, up 40.4% from the previous year. Between 2017 and 2020, imports decreased by 13%, equivalent to an annualized rate of 4.5%. The lowest value was recorded in 2019 at 29 490 thousand US dollars, which also saw the largest decline of 37.8%.

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

Between 2017 and 2020, New Zealand was the leading source of imports by value, accounting for 46.4%, followed by France at 23.3%, and Indonesia at 7.2%. These three countries together made up 77.0% of total import flows.

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

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