Butter, dairy spreads and milk fats market in Mongolia

Earlier Report Observations

Between 2018 and 2023, the Mongolian market for butter, dairy spreads, and milk fats experienced significant volatility in volume, oscillating without a clear trend. The market size ranged from a low of 22 812 t in 2023 to a high of 28 691 t in 2020, reflecting substantial year-to-year shifts in supply and demand.

A pronounced surge lifted the market volume to 28 691 t in 2020, followed by a sharp contraction to 23 390 t in 2021. A partial recovery to 26 655 t occurred in 2022, but volume fell again to 22 812 t in 2023, indicating recurrent instability. Domestic production closely followed this pattern, being the dominant component of market volume throughout the period.

Imports played a marginal role, peaking at 562 t in 2021 but generally remaining below 2% of the total market volume. Consequently, changes in local output were the primary driver of the market's fluctuations, with trade flows having negligible impact on overall availability.

Production butter, dairy spreads and milk fats in Mongolia

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

Mongolia's production of butter, dairy spreads, and milk fats has grown for the third year in a row. In 2020, the country produced 28,427 tonnes, marking a 14.8% increase from the previous year. From 2017 to 2020, overall production rose by 17%, which translates to an average annual growth rate of 5.4%.

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

Exports butter, dairy spreads and milk fats from Mongolia

Exports in kind, t

Export figures show irregular fluctuations, pointing to a volatile market. The lowest point was in 2017, while exports peaked in 2019, with a 17-fold difference between these years. In 2020, Mongolia exported 0.3 tonnes of butter, dairy spreads, and milk fats, a sharp decline of 85.0% compared to 2019. The highest export volume was recorded in 2019 at 2.0 tonnes, and the largest year-on-year increase occurred that same year, at 433.3%.

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

From 2017 to 2020, the United States was the primary market for Mongolia's exports in kind, accounting for 80.0% of the total, with other countries making up the remainder.

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

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

Exports in value, K $ US

The export market displayed volatility during the period under review. The lowest value was in 2017, and the peak was in 2019, with a 58-fold gap between these years. In 2020, exports of butter, dairy spreads, and milk fats from Mongolia totaled 2,000 US dollars, a 94.6% drop from the previous year. The maximum value was reached in 2019 at 45,000 US dollars, and the largest year-on-year increase happened in 2018, at 706.1%.

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

Between 2017 and 2020, the United States accounted for 87.4% of Mongolia's total export value for butter, dairy spreads, and milk fats, with the rest distributed among various smaller markets.

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

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

Imports butter, dairy spreads and milk fats to Mongolia

Imports in kind, t

Following a two-year decline, Mongolia's imports of butter, dairy spreads, and milk fats increased. In 2020, imports reached 264.5 tonnes, up 17.1% from the year before. From 2017 to 2020, imports fell by 35.3%, averaging an annual decrease of 13.5%. The lowest import volume was in 2019 at 225.9 tonnes, and the steepest decline occurred that year, at 31.0%.

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

From 2017 to 2020, the main sources for Mongolia's imports in kind of butter, dairy spreads, and milk fats were Belarus (23.7% of imports), France (20.4%), and New Zealand (19.2%), together representing 63.2% of total imports.

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

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

Imports in value, K $ US

After two years of contraction, Mongolia's import value for butter, dairy spreads, and milk fats saw an uptick. In 2020, imports amounted to 1,392,000 US dollars, a modest increase of 4.7% compared to 2019. Over the 2017-2020 period, imports decreased by 27.5%, with a compound annual growth rate of -10.1%. The lowest value was recorded in 2019 at 1,328,000 US dollars, and the largest decline took place that year, at 20.0%.

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

Between 2017 and 2020, France (27.9% of import value), Belarus (23.6%), and New Zealand (22.8%) were the top destinations for Mongolia's imports in value terms, collectively making up 74.3% of the total.

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

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