Butter, dairy spreads and milk fats market in Paraguay

Earlier Report Observations

Production of butter, dairy spreads and milk fats in Paraguay increased steadily from 912 t in 2018 to 3 154 t in 2023. This growth was initially supported during the COVID-19 pandemic in 2020, when household stocking and price controls boosted demand for basic dairy products. Subsequently, the expansion was driven by rising exports, particularly after Paraguayan butter entered new markets like the United Arab Emirates following Halal certification in 2022, and benefited from favorable international butter prices.

The domestic market volume also expanded, reaching 2 491 t in 2023, more than doubling from the previous year. This surge was partly due to a significant drop in exports in 2023 to 755 t, which increased local availability. Earlier, export growth had been strong, with dairy sector revenues reaching $45.4 million in 2022, but macroeconomic factors such as exchange rate fluctuations influenced trade dynamics in 2023.

In 2024, regional market data showed a deceleration in the decline of butter consumption, and by 2025, sales improvements were reported, indicating a recovery in volumes for the broader regional market.

Production butter, dairy spreads and milk fats in Paraguay

In kind, 2018-2021, t

Top producers of butter, dairy spreads and milk fats, 2018-2021

World map of production of butter, dairy spreads and milk fats, 2018-2021

Paraguay's production of butter, dairy spreads, and milk fats has grown for the third year in a row. In 2021, the country produced 2 010 tons, marking an 11.7% increase from 2020. Looking at the period from 2018 to 2021, production surged by 120.3%, which translates to an average annual growth rate of 30.1%.

Annual dynamics of production in Paraguay in kind, 2018-2021, t

In value, 2018-2021, K $ US

The value of Paraguay's butter, dairy spreads, and milk fats production has also risen for the third consecutive year. In 2021, output was valued at 8 129 thousand US dollars, up 36.0% compared to the previous year. From 2018 to 2021, production value increased by 127.9%, averaging a 31.6% annual growth rate.

Annual dynamics of production in Paraguay in value, 2018-2021, K $ US

Exports butter, dairy spreads and milk fats from Paraguay

Exports in kind, t

Export volumes showed an unstable trend over the period. In 2019, exports hit a low of 486 tons, then surged by 81.3% in 2020, and reached 1 076 tons in 2021, a 22.1% increase from 2020. The difference between the 2019 low and the 2021 high was 2.2-fold, with the largest decline of 3.6% occurring in 2019.

Annual dynamics of product's exports from Paraguay in kind, 2018-2021, t

From 2018 to 2021, the main markets for Paraguay's butter, dairy spreads, and milk fats exports in volume terms were Russia, accounting for 61.1% of exports, Bolivia with 14.3%, and Georgia at 12.7%. Together, these three countries made up 88.1% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Paraguay in kind, 2018-2021

Exports in value, K $ US

The value of Paraguay's butter, dairy spreads, and milk fats exports has increased for the third straight year. In 2021, export value totaled 4 351 thousand US dollars, a sharp 48.8% rise from 2020. Between 2018 and 2021, export value grew by 121%, equating to an average annual rate of 30.2%.

Annual dynamics of product's exports from Paraguay in value, 2018-2021, K $ US

In value terms from 2018 to 2021, Russia was the largest buyer, representing 63.1% of exports, followed by Georgia at 13.8% and Bolivia at 10.3%. These three markets combined accounted for 87.2% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Paraguay in value, 2018-2021

Imports butter, dairy spreads and milk fats to Paraguay

Imports in kind, t

Paraguay imported 65 tons of butter, dairy spreads, and milk fats in 2019, the lowest point in the period. Imports then rose by 21.8% in 2020 to 79 tons, the highest level, before falling by 10.2% in 2021 to 71 tons. Overall, from 2018 to 2021, imports increased by 6.3%, with an average annual growth rate of 2.1%.

Annual dynamics of product's imports to Paraguay in kind, 2018-2021, t

Between 2018 and 2021, Argentina dominated Paraguay's imports in volume terms, holding an 87.6% share of total flows. The remaining imports were spread across various other markets.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Paraguay in kind, 2018-2021

Imports in value, K $ US

In 2019, Paraguay's imports of butter, dairy spreads, and milk fats in value terms were at their lowest, totaling 358 thousand US dollars. They increased by 16.8% in 2020 to 418 thousand US dollars, the peak, before contracting by 14.3% in 2021 to 358 thousand US dollars. Over the 2018-2021 period, imports decreased by 3.6%, with a compound annual growth rate of -1.2%.

Annual dynamics of product's imports to Paraguay in value, 2018-2021, K $ US

From 2018 to 2021, Argentina remained the primary source for Paraguay's imports in value terms, capturing 87.7% of total flows. The rest was distributed among several smaller markets.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Paraguay in value, 2018-2021