Butter, dairy spreads and milk fats market in Sub-Saharan Africa

Earlier Report Observations

The market for butter, dairy spreads, and milk fats in Sub-Saharan Africa began the period at 356 thousand tons in 2018, dipped to 333 thousand tons the following year, and then rebounded to 362 thousand tons in 2020.

From 2021 onwards, developments in Kenya's dairy sector became influential. A 10.8% growth in dairy production boosted local output of butter and ghee, reducing reliance on imports. Concurrently, the Kenya Dairy Board enhanced market oversight with a new regulatory laboratory and an online licensing system, aiming to improve product quality. These elements supported a market volume that fluctuated between 357 and 370 thousand tons through 2022. Despite drought and high feed costs pressuring milk supply in 2023, the total market volume continued its upward trend, reaching 376 thousand tons, aided by growing export activities.

In 2024, the focus in Kenya remained on adding value through processing milk into butter and other products for export markets. Persistent drought conditions and elevated input costs continued to challenge production, while regulatory frameworks and consumer preferences increasingly favored locally produced, processed dairy items, shaping the market's structure.

Production butter, dairy spreads and milk fats in Sub-Saharan Africa

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

In Sub-Saharan Africa, butter, dairy spreads, and milk fats production reached 334.3 thousand tons in 2020, showing a moderate increase of 7.9% compared to 2019. Over the 2017-2020 period, production grew by 11.3%, with an average annual growth rate of 3.6%. The most significant decline occurred in 2019, when production fell by 3.4%.

Annual dynamics of production in Sub-Saharan Africa in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Sub-Saharan Africa's butter, dairy spreads, and milk fats production value declined for the second year in a row. In 2020, output was valued at 2 336 million US dollars, down 15.7% year-over-year. From 2017 to 2020, production value decreased by 14.1%, with an average annual decline of 4.9%. The highest value was recorded in 2018 at 3 431 million US dollars. The largest drop occurred in 2019 with a 19.3% decrease, while the biggest increase was in 2018, rising by 26.2%.

Annual dynamics of production in Sub-Saharan Africa in value, 2017-2020, M $ US

Exports butter, dairy spreads and milk fats from Sub-Saharan Africa

Exports in kind, t

Cross-border shipments of butter, dairy spreads, and milk fats from Sub-Saharan Africa increased for the second consecutive year. In 2020, export volume reached 3 046 tons, marking a dramatic rise of 57.4% compared to the previous year. Over the 2017-2020 period, exports grew by 86.6%, with an average annual growth rate of 23.1%. The lowest volume was recorded in 2018 at 1 511 tons, which also saw the largest decline of 7.5%.

Annual dynamics of product's exports from Sub-Saharan Africa in kind, 2017-2020, t

Between 2017 and 2020, butter, dairy spreads, and milk fats from Sub-Saharan Africa were traded with numerous countries. Even the top destinations—Egypt, the United States, and Oman—together accounted for only 18.4% of total exports in volume terms, highlighting a broad distribution.

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

World map of product's exports from Sub-Saharan Africa in kind, 2017-2020

Exports in value, M $ US

Sub-Saharan Africa's butter, dairy spreads, and milk fats export value increased for the third year in a row. In 2020, exports stood at 21.3 million US dollars, representing a strong gain of 23.0% compared to 2019. From 2017 to 2020, export value rose by 44%, equating to an annualized growth rate of 12.9%.

Annual dynamics of product's exports from Sub-Saharan Africa in value, 2017-2020, M $ US

During 2017-2020, Egypt (15.3% of exports in value terms), Japan (2.1%), and Oman (1.8%) formed the largest group of buyers for butter, dairy spreads, and milk fats from Sub-Saharan Africa. However, their combined contribution was limited to 19.3% of total export value, reflecting a highly diversified market structure.

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

World map of product's exports from Sub-Saharan Africa in value, 2017-2020

Imports butter, dairy spreads and milk fats to Sub-Saharan Africa

Imports in kind, t

Sub-Saharan Africa imported 30 199 tons of butter, dairy spreads, and milk fats in 2020, up 19.7% year-over-year. Over the 2017-2020 period, imports increased by 7%, with an average annual growth rate of 2.3%. The lowest volume was recorded in 2019 at 25 227 tons, which also saw the largest decline of 31.8%. In contrast, the highest volume was in 2018 at 36 970 tons, when imports surged by 31.0%.

Annual dynamics of product's imports to Sub-Saharan Africa in kind, 2017-2020, t

From 2017 to 2020, the country structure of imports in volume terms was highly diversified. New Zealand (21.0% of imports in kind), France (13.8%), and Indonesia (13.7%) together accounted for only 48.5% of total flows, with a long tail of smaller markets making up the remaining 51.5%.

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

World map of product's imports to Sub-Saharan Africa in kind, 2017-2020

Imports in value, M $ US

In 2020, Sub-Saharan Africa's butter, dairy spreads, and milk fats imports amounted to 106.7 million US dollars, up 22.1% compared to 2019. Over the 2017-2020 period, import value decreased by 7.9%, with an average annual decline of 2.7%. The lowest value was recorded in 2019 at 87.4 million US dollars, which also experienced the largest drop of 38.3%. The highest value was in 2018 at 141.8 million US dollars, when imports increased by 22.4%.

Annual dynamics of product's imports to Sub-Saharan Africa in value, 2017-2020, M $ US

Between 2017 and 2020, New Zealand (31.4% of imports in value terms), France (16.3%), and Ireland (8.4%) made the biggest contributions to imports in value terms. Together, they accounted for 56.1% of total flows.

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

World map of product's imports to Sub-Saharan Africa in value, 2017-2020