Butter, dairy spreads and milk fats market in Honduras

Earlier Report Observations

The Honduran market for butter, dairy spreads, and milk fats began the 2018-2024 period at a high volume of 14 990 tons, supported by significant imports after authorities approved import contingencies for dairy products to prevent shortages and price speculation. This policy-driven import flow contributed to the market's initial size, but a sharp drop in imports the following year led to a contraction, bringing the market down to 13 423 tons in 2019. Through 2020 and 2021, market volume remained relatively stable between 13 200 and 13 400 tons, as import levels stayed low while exports of these products increased.

Market volume rebounded to 14 287 tons in 2022, primarily due to an exceptional drop in exports to just 20 tons, which made more product available domestically. However, this gain was reversed in 2023 when exports surged again to 813 tons, outpacing a moderate rise in imports and pulling the market volume back down to 13 657 tons. Throughout these years, domestic production of butter and milk fats remained steady, showing little variation from year to year.

Recent developments highlight ongoing structural changes. In 2024, the state-owned company LACTHOSA consolidated its regional position through an acquisition, strengthening its production and distribution systems. Concurrently, authorities authorized substantial imports of dairy products, including butter, under free trade agreements, as a 14% decline in national milk production increased reliance on foreign supplies to meet domestic demand. Initiatives like the PAILA project continue to support small and medium-scale producers to improve quality and market access.

Production butter, dairy spreads and milk fats in Honduras

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

In 2019, Honduras produced 13 696 tonnes of butter, dairy spreads, and milk fats, marking the lowest output in recent years with a 1.2% decline. Production then increased to 13 950 tonnes in 2020, showing a modest growth of 1.8% compared to the previous year.

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

In value, 2017-2020, K $ US

After two consecutive years of decline, butter, dairy spreads, and milk fats production in Honduras rebounded in value terms. In 2019, output reached its lowest point at 33 259 thousand US dollars, following an 11.6% drop in 2018. By 2020, production value surged to 39 934 thousand US dollars, reflecting a significant 20.1% increase from 2019. Over the period from 2017 to 2020, overall production grew by 5.4%, averaging an annualized growth rate of 1.8%.

Annual dynamics of production in Honduras in value, 2017-2020, K $ US

Exports butter, dairy spreads and milk fats from Honduras

Exports in kind, t

Export volumes of butter, dairy spreads, and milk fats from Honduras showed notable fluctuations during this period. In 2018, exports hit their lowest point at 438 tonnes, with a sharp decline of 48.6%. By 2020, exports rebounded strongly to 993 tonnes, representing a substantial 95.9% increase from the previous year. The peak-to-trough ratio between 2018 and 2020 was 2.3 times, highlighting the market's volatility.

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

From 2017 to 2020, the United States was the primary destination for Honduras's butter, dairy spreads, and milk fats exports in volume terms, accounting for 74.7% of total shipments. The remaining 25.3% was distributed among various smaller markets.

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

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

Exports in value, K $ US

Export values for butter, dairy spreads, and milk fats from Honduras experienced significant volatility. In 2018, exports reached their lowest point at 1 057 thousand US dollars, declining by 54.7%. By 2020, exports peaked at 2 843 thousand US dollars, showing a sharp rise of 130.9% compared to the previous year. The swing from the low in 2018 to the high in 2020 was 2.7 times, underscoring the market's instability.

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

During 2017–2020, the United States and the Dominican Republic dominated Honduras's butter, dairy spreads, and milk fats exports in value terms. The United States accounted for 69.1% of total exports, while the Dominican Republic contributed 20.4%, together making up 89.4% of the total. Other partners accounted for the remaining 10.6%.

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

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

Imports butter, dairy spreads and milk fats to Honduras

Imports in kind, t

Import volumes of butter, dairy spreads, and milk fats into Honduras displayed considerable volatility. In 2017, imports were at their lowest with 252 tonnes. They then surged to a peak of 1 569 tonnes in 2018, marking an extraordinary increase of 821.7%. Imports fell sharply in 2019 by 85.1% before recovering slightly to 252 tonnes in 2020, up 7.9% from 2019. The difference between the peak in 2018 and the low in 2017 was 9.2 times.

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

From 2017 to 2020, the United States and Costa Rica were the leading sources of butter, dairy spreads, and milk fats imports into Honduras in volume terms, together accounting for 90.0% of total imports. The remaining 10.0% came from a diverse range of other countries.

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

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

Imports in value, K $ US

Import values for butter, dairy spreads, and milk fats into Honduras followed an unstable trend. In 2017, imports were at their lowest at 1 468 thousand US dollars. They then jumped to a peak of 7 381 thousand US dollars in 2018, reflecting a massive increase of 723.7%. Imports dropped by 83.4% in 2019 before rising to 1 468 thousand US dollars in 2020, up 19.5% from 2019. The factor difference between the 2018 peak and the 2017 low was 8.2 times.

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

During 2017–2020, the United States and Costa Rica together accounted for 97.0% of Honduras's butter, dairy spreads, and milk fats imports in value terms. Other countries contributed the remaining 3.0%, forming a diversified but less significant portion of imports.

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

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