Butter, dairy spreads and milk fats market in Northern Africa

Earlier Report Observations

After reaching 381.6 thousand tons in 2018, the market volume for butter and dairy fats in Northern Africa dropped to 330.1 thousand tons in 2019. This decline coincided with increased exports of cheaper dairy blends containing vegetable fats from Europe, following the abolition of EU milk quotas in 2015, which intensified competition for local butter. The market recovered to 349.6 thousand tons in 2020, a period where the COVID-19 pandemic affected global butter prices through reduced demand from the hospitality sector, influencing the regional market's cost structure.

Market volume grew modestly to 362.8 thousand tons by 2022, but the war in Ukraine triggered a sharp rise in global butter prices, tightening supply and raising import costs for Northern Africa. In 2023, the volume fell to 325.3 thousand tons as global butter production slowed amid strong international demand, and animal disease outbreaks in Europe further constrained exports to this import-dependent region.

Persistent structural factors, such as low local milk production, limited industrialization, and traceability issues, hindered the development of domestic processing. Concurrently, the market continued to be influenced by imports of reconstituted milk powders with vegetable fats, favored by competitive pricing and low taxation, which shaped consumer preferences and competitive dynamics throughout the period.

Production butter, dairy spreads and milk fats in Northern Africa

In kind, 2017-2020, K 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

Following a two-year decline, butter, dairy spreads, and milk fats production in Northern Africa rebounded. In 2020, the region produced 286.9 K t of these products, marking a 3.6% increase from the previous year. Over the 2017-2020 period, production fell by 14.2%, with an average annual decline of 5.0%. The lowest output was recorded in 2019 at 276.8 K t, which saw the largest drop of 13.9%.

Annual dynamics of production in Northern Africa in kind, 2017-2020, K t

In value, 2017-2020, M $ US

After two years of contraction, butter, dairy spreads, and milk fats production in Northern Africa saw a recovery. In 2020, the value of this output reached 1 932 M $ US, representing a significant 23.5% rise compared to 2019. From 2017 to 2020, production value decreased by 19.9%, translating to an average annual decline of 7.1%. The lowest value was in 2019 at 1 565 M $ US, which experienced the steepest decline of 34.4%.

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

Exports butter, dairy spreads and milk fats from Northern Africa

Exports in kind, t

In 2020, butter, dairy spreads, and milk fats exports from Northern Africa totaled 577 t, a sharp increase of 62.1% from the previous year. Over the 2017-2020 period, exports grew by 28.8%, with an average annual growth rate of 8.8%. The lowest export volume was in 2019 at 356 t, which saw the largest decline of 27.9%.

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

From 2017 to 2020, Northern Africa's butter, dairy spreads, and milk fats exports were distributed across a wide range of buyers. Lebanon accounted for 22.0% of exports in kind, the United States for 16.8%, and the United Arab Emirates for 7.9%, together making up 46.7% of total exports. Many other countries held smaller but notable shares.

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

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

Exports in value, M $ US

Export values showed significant fluctuations during this period. In 2019, exports hit a low of 1.9 M $ US, then surged to 3.9 M $ US in 2020, a 2.1-fold increase. The 2020 figure represented a sharp rise of 110.1% from the previous year. The largest decline occurred in 2019, dropping by 49.5%.

Annual dynamics of product's exports from Northern Africa in value, 2017-2020, M $ US

From 2017 to 2020, Lebanon, the United States, and Iraq were the key export partners in value terms. Lebanon contributed 22.9% of export value, the United States 20.8%, and Iraq 9.5%, together accounting for 53.2% of total export flows.

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

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

Imports butter, dairy spreads and milk fats to Northern Africa

Imports in kind, t

In 2020, butter, dairy spreads, and milk fats imports into Northern Africa reached 63 334 t, a strong increase of 18.1% compared to 2019. Over the 2017-2020 period, imports grew by 14.8%, with an average annual growth rate of 4.7%. The lowest import volume was in 2019 at 53 623 t, which saw the largest decline of 11.7%.

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

From 2017 to 2020, New Zealand, Ireland, and India were the leading sources for imports in kind. New Zealand accounted for 51.6% of imports, Ireland for 9.7%, and India for 8.6%, together making up 69.9% of total import flows.

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

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

Imports in value, M $ US

In 2020, Northern Africa imported 289.9 M $ US worth of butter, dairy spreads, and milk fats, a modest increase of 7.7% from the previous year. The lowest value was recorded in 2019 at 269.2 M $ US, while the highest was in 2018 at 360.7 M $ US. The largest decline occurred in 2019, falling by 25.4%, and the largest increase was in 2018, rising by 24.7%.

Annual dynamics of product's imports to Northern Africa in value, 2017-2020, M $ US

From 2017 to 2020, New Zealand, India, and Ireland were the key sources for imports in value terms. New Zealand accounted for 53.5% of import value, India for 8.9%, and Ireland for 8.5%, together representing 70.9% of total import flows.

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

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