Butter, dairy spreads and milk fats market in Southern Europe

Earlier Report Observations

The market for butter, dairy spreads, and milk fats in Southern Europe expanded significantly from 2018 to 2021, with volume rising from 348 thousand tons to 564 thousand tons. This growth was particularly sharp in 2020, when production jumped by over 40% to 410 thousand tons. During this period, global dairy supply factors played a role, as increased milk production and butter exports from Oceania enhanced worldwide availability of milk fats, contributing to market conditions in Europe.

After reaching a peak in 2022, the market volume stabilized and then contracted to 534 thousand tons in 2023. In Italy, a key market, butter prices fell notably in late 2022 due to greater availability of cream and milk fat, which helped normalize costs after historically high levels. Early 2023 saw a slight price rebound, while consumer preferences continued to favor natural dairy fats. Concurrently, regulatory developments aimed at protecting dairy product denominations, such as proposals to combat 'milk sounding', sought to clarify the market for consumers and support the dairy sector.

Production butter, dairy spreads and milk fats in Southern Europe

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

Southern Europe's production of butter, dairy spreads, and milk fats has increased for the second year in a row. In 2020, the region produced 410.1 K t of these products, marking a significant 42.8% rise compared to 2019. Looking at the period from 2017 to 2020, production grew by 27.2%, which translates to an annualized rate of 8.3%. The lowest production level was recorded in 2018 at 276.8 K t, with the largest decline of 14.2% also occurring that year.

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

In value, 2017-2020, M $ US

Following a two-year decline, Southern Europe's production of butter, dairy spreads, and milk fats has rebounded. In 2020, the output was valued at 2 356 M $ US, showing a 29.6% increase year-over-year. From 2017 to 2020, production rose by 13%, equivalent to an annualized growth rate of 4.2%. The minimum value was observed in 2019 at 1 818 M $ US, while the largest decline of 6.9% took place in 2018.

Annual dynamics of production in Southern Europe in value, 2017-2020, M $ US

Exports butter, dairy spreads and milk fats from Southern Europe

Exports in kind, K t

In 2020, Southern Europe's exports of butter, dairy spreads, and milk fats reached 42.3 K t, reflecting a moderate 8.1% increase from the previous year. Over the period from 2017 to 2020, exports grew by 4.3%, with an annualized rate of 1.4%. The lowest export volume was recorded in 2019 at 39.1 K t, and the highest was in 2018 at 42.3 K t. The largest decline of 7.6% occurred in 2019.

Annual dynamics of product's exports from Southern Europe in kind, 2017-2020, K t

From 2017 to 2020, exports of butter, dairy spreads, and milk fats from Southern Europe were relatively evenly distributed among partner countries. France accounted for 17.4% of exports in kind, the Netherlands for 15.1%, and Germany for 9.3%, with these three countries together representing only 41.8% of total flows.

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

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

Exports in value, M $ US

Cross-border shipments of butter, dairy spreads, and milk fats from Southern Europe declined for the second consecutive year. In 2020, exports totaled 242.8 M $ US, indicating a 1.9% decrease compared to the previous year. Over the 2017-2020 period, exports fell by 7.3%, with a compound annual growth rate (CAGR) of -2.5%. The highest value was recorded in 2018 at 296.7 M $ US. The largest decline of 16.6% occurred in 2019, while the largest increase of 13.3% was in 2018.

Annual dynamics of product's exports from Southern Europe in value, 2017-2020, M $ US

Between 2017 and 2020, exports in value terms of butter, dairy spreads, and milk fats from Southern Europe were widely dispersed across partner countries. France contributed 17.7% of exports in value terms, the Netherlands 14.3%, and Germany 12.3%, with these three countries collectively accounting for only 44.4% of total flows.

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

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

Imports butter, dairy spreads and milk fats to Southern Europe

Imports in kind, K t

After a two-year increase, imports of butter, dairy spreads, and milk fats into Southern Europe declined. In 2020, the region imported 111.9 K t of these products, representing a 9.6% drop compared to 2019. The highest import volume was recorded in 2019 at 123.9 K t, with the largest increase of 8.8% also occurring that year.

Annual dynamics of product's imports to Southern Europe in kind, 2017-2020, K t

Throughout 2017 to 2020, Belgium, Germany, and the Netherlands were the key partners for imports in kind of butter, dairy spreads, and milk fats into Southern Europe. Belgium accounted for 18.0% of imports in kind, Germany for 17.6%, and the Netherlands for 15.7%, together representing 51.3% of total flows.

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

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

Imports in value, M $ US

Imports of butter, dairy spreads, and milk fats into Southern Europe declined for the second consecutive year. In 2020, imports stood at 515.5 M $ US, down by 18.9% compared to the previous year. Between 2017 and 2020, imports decreased by 19.6%, equating to an annualized rate of 7.0%. The maximum value was recorded in 2018 at 719.3 M $ US, with the largest increase of 12.3% also occurring that year.

Annual dynamics of product's imports to Southern Europe in value, 2017-2020, M $ US

From 2017 to 2020, Belgium, Germany, and the Netherlands remained the leading destinations in the import structure of butter, dairy spreads, and milk fats in value terms for Southern Europe. Belgium accounted for 19.3% of imports in value terms, Germany for 16.6%, and the Netherlands for 16.0%, with a combined share of 51.9% of total flows.

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

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