Butter, dairy spreads and milk fats market in SADC

Earlier Report Observations

From 2018 to 2020, the butter and milk fats market in SADC experienced steady expansion. The implementation of zero-tariff trade within the Southern African Customs Union (SACU) from 2019 facilitated smoother cross-border movement of goods, enhancing regional market access. The COVID-19 pandemic in 2020 further accelerated growth, as shifts in consumer behavior, including increased home consumption, drove higher demand for dairy fats, contributing to a notable rise in market volume.

Between 2021 and 2023, production and market size continued to increase, supported by persistent global demand and strategic industry shifts. Processors favored butter and milk fat production due to attractive returns, while development initiatives led by organizations like Milk SA focused on industry transformation. Sustained consumption growth in key international markets, particularly India, alongside ongoing regional trade integration, underpinned the market's upward trajectory, reaching 175.3 thousand tons by 2023.

Production butter, dairy spreads and milk fats in SADC

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

SADC's production of butter, dairy spreads, and milk fats has grown for the third year in a row. In 2020, the region produced 144.0 thousand tons, marking a significant year-over-year increase of 10.4%. From 2017 to 2020, production rose by 30.3%, with an average annual growth rate of 9.2%.

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

Exports butter, dairy spreads and milk fats from SADC

Exports in kind, t

The market showed an unstable pattern over the period. Exports hit their lowest point in 2020 at 122 tons, down 91.5% from the previous year, and peaked in 2019 at 1 438 tons, representing an 11.8-fold difference. The largest increase occurred in 2019, with a jump of 144.2%.

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

From 2017 to 2020, France consistently led as the top destination for SADC's butter, dairy spreads, and milk fats exports in volume, accounting for 0.9% of total flows.

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

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

Exports in value, K $ US

In 2020, the value of butter, dairy spreads, and milk fats exported from SADC was 10 364 thousand US dollars, up 1.5% from the previous year. The lowest value was recorded in 2019 at 10 209 thousand US dollars, while the highest was in 2018 at 12 017 thousand US dollars. The largest decline happened in 2019, dropping 15.0%, and the biggest increase was in 2018, rising 13.8%.

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

From 2017 to 2020, Special Categories topped the list of buyers for SADC's butter, dairy spreads, and milk fats in value terms, making up 0.8% of total exports.

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

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

Imports butter, dairy spreads and milk fats to SADC

Imports in kind, t

After a two-year decline, SADC's imports of butter, dairy spreads, and milk fats rebounded. In 2020, imports totaled 12 000 tons, a 22.5% increase from the prior year. Between 2017 and 2020, imports fell by 21%, equivalent to an annualized rate of 7.6%. The lowest volume was in 2019 at 9 940 tons, with the largest drop that year at 35.1%.

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

From 2017 to 2020, imports of butter, dairy spreads, and milk fats to SADC were relatively evenly distributed. New Zealand (23.0% of volume), Portugal (14.9%), and Ireland (12.0%) together accounted for 49.9% of total flows, with no single country dominating.

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

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

Imports in value, K $ US

In 2020, the value of butter, dairy spreads, and milk fats imported by SADC reached 55 787 thousand US dollars, a 10.9% year-over-year increase. Over the 2017-2020 period, imports decreased by 4.3%, with an average annual decline of 1.5%. The lowest value was in 2019 at 50 299 thousand US dollars, and the highest was in 2018 at 84 631 thousand US dollars. The largest decline occurred in 2019, falling 40.6%, while the biggest increase was in 2018, up 45.2%.

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

The import structure in value terms from 2017 to 2020 was diversified. New Zealand (25.9% of value), Ireland (14.8%), and the United Kingdom (7.3%) combined for 48.0% of total flows, with no country holding a clearly dominant position.

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

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