Butter, dairy spreads and milk fats market in Peru

Earlier Report Observations

Between 2018 and 2023, the Peruvian butter and dairy fats market showed considerable volatility, peaking at 23 851 t in 2020 before declining to 15 424 t by 2023. The period began with the approval of the Milk and Dairy Products Regulation (Decreto Supremo N° 007-2017-MINAGRI), which established foundational safety and quality requirements for the entire supply chain. This regulatory move set the stage for subsequent amendments, including the 2022 modification of the regulation that strengthened quality controls and introduced new labeling rules to protect consumers.

A key development in 2022 was the approval of the Peruvian Technical Standard for butter (NTP 202.024.2021), which clearly defined quality parameters and permitted ingredients for the category. Simultaneously, labeling changes requiring clear disclosure of milk powder use increased transparency for buyers. These measures coincided with growing consumer interest in healthier and low-fat options, prompting major players like Gloria to update their product portfolios. However, the market remained highly concentrated, with three companies controlling over 90% of the dairy sector, which limited the entry of new competitors.

Throughout the period, public initiatives such as the Sectoral Action Plan to strengthen small family dairy farming (2021-2024) and investments in modern pasteurization plants aimed at boosting production capacity, especially among small and artisanal producers. These value-chain development efforts may have helped cushion the overall market volume decline after 2020, supporting domestic production at around 10 000–11 000 t annually.

Production butter, dairy spreads and milk fats in Peru

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

Peru's production of butter, dairy spreads, and milk fats has grown for the third year in a row. In 2020, the country produced 14,158 tons, marking a 26.1% increase from the previous year. Looking at the period from 2017 to 2020, production rose by 43.2%, with an average annual growth rate of 12.7%.

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

Exports butter, dairy spreads and milk fats from Peru

Exports in kind, t

The market showed an unstable trend over this period. In 2019, exports hit their lowest point at 4 tons, but by 2020, they surged to 103 tons—a dramatic increase of 2,211.0% year-over-year. The difference between these peak and trough years was 23-fold. The largest decline occurred in 2018, with a drop of 65.9%.

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

From 2017 to 2020, Peru's exports of butter, dairy spreads, and milk fats were spread across many partner countries. Ecuador accounted for 13.8% of exports, Venezuela for 12.8%, and Chile for 2.4%. Together, these three countries represented just 29.0% of total export flows.

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

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

Exports in value, K $ US

Market performance saw noticeable fluctuations during this timeframe. In 2019, export value reached its lowest point at 31,000 US dollars, but by 2020, it peaked at 261,000 US dollars—a sharp rise of 741.9% compared to the previous year. The gap between these years was 8.4-fold. The largest decline was recorded in 2019, with a decrease of 66.4%.

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

Between 2017 and 2020, the main destinations for Peru's exports in value terms were Ecuador, with 31.5% of exports, Venezuela at 16.7%, and Spain at 4.6%. Collectively, these three countries accounted for 52.8% of total export flows.

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

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

Imports butter, dairy spreads and milk fats to Peru

Imports in kind, t

Peru imported approximately 9,796 tons of butter, dairy spreads, and milk fats in 2020, which is 62.4% higher than in 2019. The lowest import volume was recorded in 2019 at 6,033 tons. Over the period from 2017 to 2020, imports increased by 36.4%, translating to an annualized growth rate of 10.9%. The largest decline occurred in 2019, with a drop of 36.7%.

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

From 2017 to 2020, New Zealand, Chile, and Argentina were the primary sources for Peru's imports of butter, dairy spreads, and milk fats. New Zealand supplied 66.7% of imports, Chile 10.9%, and Argentina 5.8%. Together, these three countries made up 83.4% of total import flows.

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

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

Imports in value, K $ US

In 2020, Peru's imports of butter, dairy spreads, and milk fats amounted to 47,352,000 US dollars, up 45.6% from 2019. The minimum value was recorded in 2019 at 32,521,000 US dollars, while the maximum was in 2018 at 60,268,000 US dollars. Over the 2017-2020 period, imports grew by 12.3%, with an average annual rate of 3.9%. The largest decline was in 2019, with a decrease of 46.0%.

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

Between 2017 and 2020, New Zealand, Chile, and Argentina remained the key destinations for Peru's imports in value terms. New Zealand accounted for 67.3% of imports, Chile for 10.4%, and Argentina for 5.7%. Combined, these three countries represented 83.3% of total import flows.

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

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