Butter, dairy spreads and milk fats market in Rwanda

Earlier Report Observations

From 2018 to 2020, Rwanda's butter and dairy fats market expanded significantly, with volume rising from 3 347 t to 4 210 t. This growth was driven by the Rwanda Livestock Master Plan, which targeted a major increase in dairy cattle and milk production, and the harmonization of East African standards for milk products to boost regional trade. Continued policy support and investments under the Rwanda Dairy Development Project in processing and marketing infrastructure further enhanced local production capacity.

The market contracted in 2021 and 2022, falling to 3 820 t. The decline was influenced by food safety concerns stemming from a high prevalence of mastitis in dairy herds, which affected milk quality and supply. Additionally, surging inflation—reaching 13.9% in 2022 due to global commodity price shocks and supply chain disruptions—increased costs and subdued consumer demand, even as Inyange Industries commissioned the country's first milk powder plant with butter and ghee production lines.

In 2023, market volume stabilized and grew slightly to 3 874 t. Ongoing development projects continued to strengthen the dairy sector's resilience, while shifting consumer preferences toward natural fats supported demand for butter and dairy spreads.

Production butter, dairy spreads and milk fats in Rwanda

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

Rwanda's production of butter, dairy spreads, and milk fats has increased for the second year in a row. In 2020, the country produced 4,219 tonnes, marking a 14.5% rise from the previous year. Looking at the period from 2017 to 2020, production grew by 20.9%, which translates to an average annual increase of 6.5%. The lowest production level was recorded in 2018 at 3,427 tonnes, with the largest decline that year at 1.8%.

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

Exports butter, dairy spreads and milk fats from Rwanda

Exports in kind, t

The data shows irregular changes, pointing to a volatile market environment. Exports varied significantly, dropping from a high of 118.1 tonnes in 2018 to a low in 2017, with an 11.4-fold difference between these years. In 2020, Rwanda exported 17.6 tonnes of butter, dairy spreads, and milk fats, representing a moderate increase of 6.0% compared to 2019. The largest decline occurred in 2019 at 86.0%, while the largest increase was in 2018 at 1,038.5%.

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

From 2017 to 2020, Uganda was the dominant market for Rwanda's exports in kind, accounting for 78.4% of total flows, with other countries making up the remaining share.

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

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

Exports in value, K $ US

The market displayed an unstable trend throughout the period. Export volumes peaked in 2018 and fell to their lowest point in 2017, with a 6.3-fold difference between these years. In 2020, Rwanda's foreign supplies of butter, dairy spreads, and milk fats amounted to 42.4 thousand US dollars, down by 19.6% from the previous year. The maximum value was recorded in 2018 at 161.2 thousand US dollars. The largest decline was in 2019 at 67.3%, and the largest increase was in 2018 at 529.9%.

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

Between 2017 and 2020, Uganda and Syria were the leading buyers of butter, dairy spreads, and milk fats from Rwanda, together accounting for 82.6% of total exports in value terms, while other partners played a less significant role.

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

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

Imports butter, dairy spreads and milk fats to Rwanda

Imports in kind, t

Rwanda's imports of butter, dairy spreads, and milk fats have declined for the third consecutive year. In 2020, the country imported 7.9 tonnes, indicating a reduction of 44.1% from the previous year. From 2017 to 2020, imports decreased by 80.8%, equating to an average annual decline of 42.3%.

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

From 2017 to 2020, Uganda (44.3% of imports in kind), Belgium (21.6% of imports in kind), and the Netherlands (12.3% of imports in kind) led the structure of imports in kind, together representing 78.2% of total flows.

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

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

Imports in value, K $ US

Rwanda's imports of butter, dairy spreads, and milk fats have fallen for the third year in a row. In 2020, imports totaled 51.9 thousand US dollars, down by 36.3% from the previous year. Over the period from 2017 to 2020, imports decreased by 73.3%, with an average annual decline of 35.6%.

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

Between 2017 and 2020, Belgium (43.2% of imports in value terms), Uganda (22.4% of imports in value terms), and the Netherlands (14.9% of imports in value terms) stood out as the main markets for imports in value terms, together accounting for 80.4% of total flows.

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

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