Butter, dairy spreads and milk fats market in Tanzania

Earlier Report Observations

Between 2018 and 2020, the market for butter, dairy spreads, and milk fats in Tanzania expanded from 81.7 thousand tonnes to 102.2 thousand tonnes. This growth was primarily fueled by ongoing market liberalization and rapid urbanization, which increased demand and encouraged local production. The COVID-19 pandemic in 2020 further shifted consumer preferences toward locally processed dairy products, supporting domestic output despite global supply chain disruptions.

From 2021 to 2023, the market continued to rise, reaching 122.8 thousand tonnes. The entry of new players like ASAS Dairies Ltd. and Tan Dairies Ltd., along with the launch of new product lines, broadened market supply. Simultaneously, investments in processing infrastructure and technology enhanced production capacity, while changes in distribution policies improved market access. Growing consumer inclination toward natural and healthy dairy fats also sustained demand growth.

Production butter, dairy spreads and milk fats in Tanzania

In kind, 2017-2020, t

Between 2017 and 2020, Tanzania ranked as the 28th largest global producer of butter, dairy spreads, and milk fats.

Top producers of butter, dairy spreads and milk fats, 2017-2020

World map of production of butter, dairy spreads and milk fats, 2017-2020

Tanzania's production of butter, dairy spreads, and milk fats grew for the third year in a row. In 2020, the country produced 101 640 tonnes, marking a strong increase of 12.1% from the previous year. From 2017 to 2020, production rose by 43.5%, which translates to an average annual growth rate of 12.8%.

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

Exports butter, dairy spreads and milk fats from Tanzania

Exports in kind, t

The market experienced volatility during this period. Export volumes reached their highest point in 2017 and fell to their lowest in 2018, with a peak-to-trough ratio of 145 times. In 2019, Tanzania exported 1.8 tonnes of butter, dairy spreads, and milk fats, a sharp increase of 6 665.4% compared to 2018. The lowest volume was recorded in 2018 at 0.0 tonnes, and the largest decline occurred that same year, at 99.3%.

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

From 2017 to 2020, Zambia and Comoros were the main buyers of Tanzania's butter, dairy spreads, and milk fats, together accounting for 94.8% of total exports in volume. Other countries made up the remaining share.

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

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

Exports in value, K $ US

Tanzania's export value of butter, dairy spreads, and milk fats fell for the second consecutive year. In 2019, exports totaled 4 000 US dollars, a decrease of 54.5% from 2018. Between 2017 and 2019, exports dropped by 62.5%, with a compound annual growth rate of -27.9%.

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

During 2017–2020, Zambia and Oman dominated Tanzania's export markets in value terms, jointly representing 83.4% of total flows. Other countries accounted for the rest.

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

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

Imports butter, dairy spreads and milk fats to Tanzania

Imports in kind, t

Market performance showed notable fluctuations over the period. Import volumes peaked in 2019 and hit their lowest in 2017, with a top-to-bottom ratio of 1.8 times. In 2020, Tanzania imported 551.1 tonnes of butter, dairy spreads, and milk fats, a significant decline of 21.6% from the previous year. The highest volume was recorded in 2019 at 703.2 tonnes, and the largest increase occurred that year, at 82.3%.

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

From 2017 to 2020, Denmark (22.6% of import volume), the United Arab Emirates (18.7%), and Uganda (14.5%) were the key partners for Tanzania's imports of butter, dairy spreads, and milk fats, together making up 55.7% of total flows.

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

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

Imports in value, K $ US

In 2020, Tanzania's import value for butter, dairy spreads, and milk fats was 759 000 US dollars, down 41.1% from 2019. Over the period 2017–2020, imports decreased by 24.7%, with a compound annual growth rate of -9.0%. The highest value was recorded in 2019 at 1 290 000 US dollars, and the largest increase occurred that year, at 36.3%.

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

Between 2017 and 2020, three main markets—Uganda, South Africa, and Kenya—collectively accounted for 69.5% of Tanzania's total import value for butter, dairy spreads, and milk fats.

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

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