Butter, dairy spreads and milk fats market in Morocco

Earlier Report Observations

From 2018 to 2021, butter and dairy fats production in Morocco remained stable, with a slight increase to 77 068 t in 2021. This period benefited from ongoing improvements in dairy sector productivity and industrial processing capacity, which supported local output. However, starting in 2021, rising prices for imported raw materials such as skimmed milk powder and corn began to increase production costs for manufacturers.

A sharp decline occurred in 2022, with production falling to 62 304 t and market volume dropping to 78 381 t, down 15% from the previous year. This was driven by a prolonged drought, a reduction in the dairy cow herd from 1.91 million to 1.67 million head, and an 88% surge in animal feed prices. Additionally, a boycott of some dairy products and lingering COVID-19 effects dampened consumption. In response, the government suspended customs duties and VAT on imports of skimmed milk powder and butter until October 2023 to support the sector.

In 2023, production fell further to 59 274 t, and market volume contracted to 72 873 t. To address the herd shortage, authorities introduced a subsidy of 6 000 DH per head for importing heifers, valid until the end of 2026, while the farm-gate milk price paid to producers rose by 19% that year. By 2024, Ireland emerged as the leading butter supplier to Morocco, exporting 2 000 t, reflecting a shift in import sources amid domestic production challenges.

Production butter, dairy spreads and milk fats in Morocco

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

Morocco's production of butter, dairy spreads, and milk fats has increased for the second year in a row. In 2020, the country produced 76 995 tonnes, marking a slight year-on-year rise of 1.0%. The most significant decline occurred in 2018, when production remained unchanged.

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

Exports butter, dairy spreads and milk fats from Morocco

Exports in kind, t

Morocco's exports of butter, dairy spreads, and milk fats have fallen for the third consecutive year. In 2020, exports dropped to 4 tonnes, a 26.4% decrease compared to 2019. Over the period from 2017 to 2020, exports plummeted by 94.5%, with a compound annual growth rate (CAGR) of -61.9%.

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

From 2017 to 2020, Lebanon, Angola, and Mauritania were the main destinations for Morocco's exports of butter, dairy spreads, and milk fats. Lebanon accounted for 66.6% of exports in volume, Angola for 11.2%, and Mauritania for 3.5%. Together, these three countries made up 81.4% of total export flows.

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

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

Exports in value, K $ US

The value of Morocco's butter, dairy spreads, and milk fats exports has declined for the third year in a row. In 2020, exports amounted to 28 thousand US dollars, a 42.3% drop from the previous year. Between 2017 and 2020, export value fell by 94.6%, with a compound annual growth rate (CAGR) of -62.3%.

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

Between 2017 and 2020, Lebanon was the leading market for Morocco's butter, dairy spreads, and milk fats in value terms, representing 71.1% of total exports. Other destinations played a much smaller role during this period.

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

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

Imports butter, dairy spreads and milk fats to Morocco

Imports in kind, t

After two years of decline, Morocco's imports of butter, dairy spreads, and milk fats increased in 2020. Import volume reached 16 628 tonnes, a 7.1% rise compared to 2019. However, from 2017 to 2020, overall imports decreased by 18%, equivalent to an annualized rate of -6.4%. The lowest import volume was recorded in 2019 at 15 519 tonnes, which also saw the largest decline of 16.0%.

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

From 2017 to 2020, New Zealand, Ukraine, and Ireland were the primary suppliers of butter, dairy spreads, and milk fats to Morocco. New Zealand contributed 33.9% of imports in volume, Ukraine 20.4%, and Ireland 17.1%. Collectively, these three countries accounted for 71.4% of total import volume.

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

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

Imports in value, K $ US

Morocco's imports of butter, dairy spreads, and milk fats in value terms have decreased for the third consecutive year. In 2020, imports stood at 70 005 thousand US dollars, showing little change from 2019. Over the period from 2017 to 2020, import value fell by 29.1%, with an annualized rate of -10.8%.

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

During 2017–2020, New Zealand, Ukraine, and Ireland remained the top suppliers of butter, dairy spreads, and milk fats to Morocco in value terms. New Zealand accounted for 35.3% of imports, Ukraine for 18.9%, and Ireland for 15.8%. Together, these three countries made up 70.0% of total import value.

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

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