Butter, dairy spreads and milk fats market in Tunisia

Earlier Report Observations

The Tunisian butter and dairy fats market volume grew initially to 18,108 t in 2019, supported by government incentives for the dairy sector which raised consumption. This expansion occurred despite emerging pressures, as insufficient farmer income and rising animal feed costs reduced industrial milk supply by 15% and triggered the closure of two dairy processing units, making imports increasingly vital to meet demand.

Market volume then contracted over 2020-2021, falling to 16,419 t. Butter production in the key region of Mahdia dropped sharply, reflecting broader chain fragility, while an estimated loss of 20% of the national dairy herd further constrained milk availability. This supply tightening led to a dramatic fall in imports. A turnaround began in 2022, accelerated by a severe butter shortage on shelves and a government reduction of taxes on butter and milk powder aimed at curbing prices. These factors facilitated a recovery in imports, lifting the market to 17,243 t. The rebound strengthened in 2023, with volume reaching 19,056 t, as a deep financial crisis in the dairy sector and rigid price policies for basic goods sustained reliance on imported butter to compensate for limited domestic output.

High inflation on dairy products and rising butter prices observed by 2024 highlighted the persistent imbalance between production costs and consumer prices, a structural challenge that defined the period's volatility.

Production butter, dairy spreads and milk fats in Tunisia

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

In 2020, Tunisia produced 16 343 tonnes of butter, dairy spreads, and milk fats, maintaining the same level as in 2019. Over the period from 2017 to 2020, production decreased by 5.4%, which translates to an average annual decline of 1.8%. The most significant drop occurred in 2018, with a 5.0% decrease, while 2019 saw no change in production levels.

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

Exports butter, dairy spreads and milk fats from Tunisia

Exports in kind, t

The export market experienced notable fluctuations during this period. Exports reached their lowest point in 2019 at 1 tonne and their peak in 2017, showing a 209-fold difference between these years. In 2020, Tunisia's exports of butter, dairy spreads, and milk fats stood at 5 tonnes, representing a substantial increase of 554.7% compared to the previous year. The largest decline was recorded in 2019, with a drop of 99.1%.

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

From 2017 to 2020, Libya was the primary buyer of butter, dairy spreads, and milk fats from Tunisia, accounting for 87.3% of total exports in volume. Other countries shared the remaining portion of exports.

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

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

Exports in value, K $ US

The export market displayed volatility over the observed period. The lowest export value was recorded in 2019 at 2 thousand US dollars, while the highest was in 2017, resulting in a 217-fold gap between these years. In 2020, shipments of butter, dairy spreads, and milk fats from Tunisia totaled 27 thousand US dollars, marking a significant increase of 1,675.6% compared to the previous year. The largest decline occurred in 2019, with a decrease of 98.7%.

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

Throughout 2017 to 2020, Libya dominated the export value of butter, dairy spreads, and milk fats from Tunisia, holding 75.5% of total flows. Other countries each accounted for significantly smaller shares.

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

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

Imports butter, dairy spreads and milk fats to Tunisia

Imports in kind, t

After two years of growth, imports of butter, dairy spreads, and milk fats into Tunisia declined. In 2020, imports amounted to 1 203 tonnes, indicating a sharp decrease of 29.5% compared to the previous year. Over the period from 2017 to 2020, imports increased by 27.6%, equivalent to an average annual growth rate of 8.5%. The highest import volume was recorded in 2019 at 1 705 tonnes, while the largest increase occurred in 2018, with a rise of 56.8%.

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

From 2017 to 2020, Ireland, Uruguay, and Poland were the leading suppliers of butter, dairy spreads, and milk fats to Tunisia. Ireland accounted for 28.7% of imports in volume, Uruguay for 18.3%, and Poland for 10.2%, collectively representing 57.3% of total imports.

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

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

Imports in value, K $ US

Imports of butter, dairy spreads, and milk fats into Tunisia declined for the second consecutive year. In 2020, imports totaled 4 705 thousand US dollars, reflecting a reduction of 37.5% compared to the previous year. Between 2017 and 2020, imports decreased by 31.3%, which corresponds to an average annual decline of 11.7%. The peak import value was recorded in 2018 at 7 888 thousand US dollars, with the largest increase also occurring in 2018, at 15.2%.

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

In the period from 2017 to 2020, Ireland, Uruguay, and Poland formed the main cluster of markets for imports in value terms. Ireland held 28.3% of import value, Uruguay 19.4%, and Poland 10.9%, together accounting for 58.6% of total flows.

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

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