Butter, dairy spreads and milk fats market in Ethiopia

Earlier Report Observations

The Ethiopian butter and dairy spreads market expanded from 30 581 t in 2018 to 45 397 t in 2020. This growth was supported by government and partner efforts to promote crossbreeding, which improved milk yields, and by an increase in the share of cow milk traditionally processed into butter, reaching about 41% of milk used. These developments helped raise overall production volumes.

Market volume contracted to 37 049 t in 2021 before recovering to 40 560 t by 2023. The implementation of new milk quality standards in 2021-2022 aimed to improve product safety, while the period from 2022 onward saw high inflation and consecutive drought conditions. These economic and climatic pressures limited retail volume growth, as consumers shifted toward more affordable unpackaged butter.

The market remains anchored in smallholder traditional processing and strong cultural preferences for local dairy products. Into 2024, persistent inflation and drought continue to influence dynamics, while modern marketing arrangements and packaged products gradually gain ground among urban consumers.

Production butter, dairy spreads and milk fats in Ethiopia

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

Ethiopia's production of butter, dairy spreads, and milk fats has increased for the third consecutive year. In 2019, the country produced 37,200 tonnes, which rose to 44,830 tonnes in 2020—a 20.5% increase. Over the period from 2017 to 2020, production grew by 51.4%, with an average annual growth rate of 14.8%.

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

In value, 2017-2020, M $ US

The value of butter, dairy spreads, and milk fats production in Ethiopia has risen for the third year in a row. In 2019, output was valued at 178.9 million US dollars, increasing to 258.8 million US dollars in 2020—a 44.7% gain. Between 2017 and 2020, production value increased by 65.7%, equating to an annualized growth rate of 18.3%.

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

Exports butter, dairy spreads and milk fats from Ethiopia

Exports in kind, t

Ethiopia's exports of butter, dairy spreads, and milk fats have declined for the third consecutive year. In 2019, exports were 5.8 tonnes, dropping to 5.0 tonnes in 2020—a significant decrease of 13.8%. Over the period from 2017 to 2020, exports fell by 70.4%, with an average annual decline of 33.4%.

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

From 2017 to 2020, Sudan was the leading market for Ethiopia's exports in kind, accounting for 71.2% of total flows, while other markets together made up the remaining share.

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

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

Exports in value, K $ US

After two years of decline, Ethiopia's exports of butter, dairy spreads, and milk fats in value terms increased in 2020. In 2019, export value was 27.9 thousand US dollars, rising to 28.8 thousand US dollars in 2020—a moderate uptick of 3.5%. Over the period from 2017 to 2020, exports decreased by 67.6%, with an average annual decline of 31.3%. The largest decline occurred in 2018, at 58.1%.

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

Between 2017 and 2020, Sudan and the United States were the dominant markets for Ethiopia's exports in value terms, jointly accounting for 81.2% of total flows, with other countries representing the residual share.

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

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

Imports butter, dairy spreads and milk fats to Ethiopia

Imports in kind, t

Ethiopia's imports of butter, dairy spreads, and milk fats have increased for the third consecutive year. In 2019, imports were 160.7 tonnes, surging to 572.1 tonnes in 2020—a remarkable improvement of 255.8%. Over the period from 2017 to 2020, imports grew by 1,746.8%, with an average annual growth rate of 164.3%.

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

From 2017 to 2020, imports in kind of butter, dairy spreads, and milk fats to Ethiopia were largely oriented towards Yemen and Egypt, whose combined share reached 85.8% of total flows, with other destinations playing a secondary role.

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

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

Imports in value, K $ US

Ethiopia's imports of butter, dairy spreads, and milk fats in value terms have risen for the third consecutive year. In 2019, imports amounted to 207.2 thousand US dollars, increasing to 937.5 thousand US dollars in 2020—up by 353.0% year-over-year. Over the period from 2017 to 2020, imports increased by 475.2%, with an average annual growth rate of 79.2%.

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

Throughout 2017 to 2020, Yemen (53.2% of imports in value terms), France (16.6%), and Egypt (6.1%) formed the core of Ethiopia's imports in value terms, together taking 75.8% of total flows.

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

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