Concentrated or sweetened milk and cream market in Madagascar

Earlier Report Observations

The market for concentrated or sweetened milk and cream in Madagascar grew in 2018 and 2019, driven by a significant increase in imports that competed aggressively on price with local products. This prompted domestic producer Socolait to launch campaigns promoting local 'Vita Malagasy' goods. A turning point came in 2020 when a provisional 32% safeguard tax was imposed on imports to protect the local industry, coinciding with COVID-19 disruptions, leading to a drop in imports and a contraction in total market volume.

Despite the ongoing protective measures, import volumes and market size recovered temporarily in 2021. However, the persistent safeguard tax and broader regulatory efforts advocated by the Malagasy Dairy Board contributed to a sharp decline in imports and market volume by 2022. The market stabilized at this lower level in 2023, with Socolait continuing to work with local farmers and development projects like PROFI Lait supporting the supply chain. By 2024, the sector's development plan prioritized dairy, aiming to address chronic production shortfalls and boost local consumption.

Production concentrated or sweetened milk and cream in Madagascar

In kind, 2017-2020, t

Top producers of concentrated or sweetened milk and cream, 2017-2020

World map of production of concentrated or sweetened milk and cream, 2017-2020

Madagascar's production of concentrated or sweetened milk and cream has declined for the second year in a row. In 2020, the country produced 2,872 tonnes, representing a slight decrease of 0.6% compared to the previous year. Looking at the period from 2017 to 2020, overall production fell by 12.3%, with an average annual decline of 4.3%. The most significant drop occurred in 2019, when production decreased by 11.8%. In contrast, 2018 saw no change, with production remaining stable.

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

Exports concentrated or sweetened milk and cream from Madagascar

Exports in kind, t

The export market for concentrated or sweetened milk and cream from Madagascar showed considerable volatility during this period. The difference between the peak in 2017 and the low point in 2018 was substantial, with a 215-fold variation. In 2020, exports dropped sharply to just 0.2 tonnes, marking a dramatic year-over-year decline of 99.5%.

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

From 2017 to 2020, France was the dominant market for Madagascar's exports of concentrated or sweetened milk and cream in volume terms, accounting for 98.1% of the total.

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

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

Exports in value, K $ US

Export values for concentrated or sweetened milk and cream from Madagascar experienced notable fluctuations over these years. The period from 2017 to 2018 saw the most extreme swing, with a peak-to-trough difference of 412 times. In 2020, export revenue fell to 3,000 US dollars, representing a steep 99.8% decrease compared to the previous year.

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

During the 2017–2020 period, France and Mauritius together accounted for the vast majority of Madagascar's export revenue from concentrated or sweetened milk and cream, with a combined share of 99.8%.

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

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

Imports concentrated or sweetened milk and cream to Madagascar

Imports in kind, t

After increasing for two consecutive years, Madagascar's imports of concentrated or sweetened milk and cream declined in 2020. The import volume for that year was 10,176 tonnes, which is 23.3% lower than in 2019. Over the full period from 2017 to 2020, imports decreased by 11.4%, with an average annual decline of 4.0%. The highest import volume was recorded in 2019 at 13,269 tonnes, which also saw the largest increase of 9.6%.

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

From 2017 to 2020, Malaysia was the primary supplier of concentrated or sweetened milk and cream to Madagascar in volume terms, accounting for 70.3% of total imports. The remaining imports came from a diverse group of other countries.

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

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

Imports in value, K $ US

Following two years of growth, the value of Madagascar's imports of concentrated or sweetened milk and cream declined in 2020. Import spending for that year totaled 18,817,000 US dollars, showing a moderate decrease of 7.7% compared to 2019. The peak import value was recorded in 2019 at 20,378,000 US dollars, while the largest increase occurred in 2018 with a rise of 7.4%.

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

Between 2017 and 2020, the main sources of Madagascar's imports in value terms were Malaysia, France, and New Zealand. Malaysia accounted for 44.9% of import spending, France for 25.1%, and New Zealand for 10.9%. Together, these three countries represented 80.9% of total import flows.

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

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