Butter, dairy spreads and milk fats market in Romania

Earlier Report Observations

The Romanian market for butter, dairy spreads, and milk fats grew in volume from 21 679 t in 2018 to 27 919 t in 2020. However, the market value dipped in 2019, suggesting a period of price adjustment or changing product mix before resuming growth. From 2021, a decline in domestic milk collection and butter production contributed to a more constrained supply environment. The market was then significantly reshaped by external shocks; in 2022, the war in Ukraine triggered strong global price volatility and adjustments in demand, which led to a contraction in market volume to 26 650 t. In response, the Romanian government implemented a state aid scheme to support dairy operators, helping to stabilize the sector amidst rising production costs for feed and energy.

Market dynamics shifted again in 2023, as massive imports of dairy products at dumping prices, particularly from Hungary, created fierce competition and pressured sales of domestic milk. Despite this, overall market volume recovered to 29 130 t. A pivotal change occurred in 2024, when a crisis in the bulk butter market made local production more profitable, leading processors to shift from imports to domestic manufacturing. This drove a 9% increase in butter production and helped push total market volume to a new high of 32 085 t. Concurrently, major investments like the new 13 500 sqm logistics center opened by Olympus in Brașov strengthened the supply chain for both local and export markets.

Supporting this expansion, Romanian consumers showed increased demand for products like fermented milk, which influenced both production and import trends. The sector also saw a nearly 39% surge in raw milk imports to meet processing needs. While national legislation clarified quality standards for butter and yellow-fat dairy products, discussions emerged about non-dairy products using vegetable oils, highlighting evolving market composition. Overall, the period from 2021 to 2024 was marked by a transition towards greater local production capacity in response to global trade disruptions and competitive pressures.

Production butter, dairy spreads and milk fats in Romania

In value, 2017-2020, K $ US

In 2020, Romania's production of butter, dairy spreads, and milk fats reached a value of 78 865 K $ US, marking an 18.5% increase compared to the previous year. The minimum value was recorded in 2019 at 66 577 K $ US, with the largest decline that year at 9.8%. Over the period from 2017 to 2020, production grew by 13.7%, translating to an annualized rate of 4.4%.

Annual dynamics of production in Romania in value, 2017-2020, K $ US

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

After two years of decline, Romania's production volume of butter, dairy spreads, and milk fats rebounded. In 2020, the country produced 11 547 t, showing a significant year-over-year improvement of 19.2%. The minimum volume was recorded in 2019 at 9 688 t, with the largest decline occurring in 2018 at 12.4%.

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

Exports butter, dairy spreads and milk fats from Romania

Exports in kind, t

The data shows irregular changes, indicating a volatile market environment. Exports peaked in 2018 at 511 t and hit their lowest point in 2019 at 209 t, representing a 2.4-fold difference between these years. In 2020, Romania exported 371 t, which is 77.0% higher than in 2019. The largest decline was recorded in 2019 at 59.0%.

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

From 2017 to 2020, three main markets—Moldova, Germany, and Poland—collectively absorbed 68.8% of Romania's total exports in kind of butter, dairy spreads, and milk fats.

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

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

Exports in value, K $ US

In 2020, Romania's exports of butter, dairy spreads, and milk fats were valued at 1 862 K $ US, up by 55.9% from the previous year. The minimum value was recorded in 2019 at 1 194 K $ US, while the maximum was in 2018 at 3 081 K $ US, with the largest decline in 2019 at 61.2%. Between 2017 and 2020, exports decreased by 24.3%, equating to an annualized rate of 8.8%.

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

From 2017 to 2020, Moldova (39.5% of exports in value terms), Germany (22.2%), and Poland (8.8%) together accounted for 70.5% of Romania's total exports in value terms, remaining the primary destinations for butter, dairy spreads, and milk fats.

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

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

Imports butter, dairy spreads and milk fats to Romania

Imports in kind, t

Romania's imports of butter, dairy spreads, and milk fats increased for the third consecutive year. In 2020, imports amounted to 16 743 t, corresponding to a 17.3% rise compared to the previous year. Over the period from 2017 to 2020, imports grew by 47.2%, with a compound annual growth rate (CAGR) of 13.8%.

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

Throughout 2017 to 2020, Poland (37.0% of imports in kind), Germany (17.6%), and France (13.1%) formed the core group of markets for Romania's imports in kind, together representing 67.7% of total flows.

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

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

Imports in value, K $ US

In 2020, Romania imported butter, dairy spreads, and milk fats valued at 72 281 K $ US, which is 10.1% higher than a year earlier. The largest increase was recorded in 2018 at 11.6%, while the largest decline occurred in 2019 at 0.7%. Over the period from 2017 to 2020, imports increased by 22.1%, with a CAGR of 6.9%.

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

From 2017 to 2020, Poland (37.3% of imports in value terms), Germany (17.7%), and France (13.7%) formed the main cluster of markets for Romania's imports in value terms, with a combined share of 68.7% of total flows.

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

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