Milk and cream market in Libya

Earlier Report Observations

The market for milk and cream in Libya contracted significantly between 2018 and 2023, with total volume falling from 353 thousand tonnes to 250 thousand tonnes. This decline was primarily driven by a sharp drop in imports, which plummeted from 120 thousand tonnes to just 23 thousand tonnes over the period. Global supply chain disruptions and rising raw material prices in 2020 severely affected import flows and local production costs, setting the stage for a multi-year downturn.

In 2022, the market faced additional pressures when the Ministry of Health issued a warning against certain infant milk products due to bacterial contamination, eroding consumer trust. Simultaneously, increased fertilizer imports and higher global fertilizer prices raised agricultural production costs, which translated into higher milk prices and further dampened demand. Despite these challenges, the opening of the Wiba holding group's large and technologically advanced milk and juice plant in 2023 aimed to meet demand and support local production, though overall market volume continued to decline.

By 2024, imports remained low at 25 thousand tonnes, as the Central Bank of Libya restricted letters of credit and cut foreign currency purchase limits, hampering raw material imports. Persistent high global fertilizer prices, exacerbated by disruptions in the Strait of Hormuz, continued to inflate local production costs. These factors, combined with earlier supply chain issues and consumer confidence shocks, have kept the market in a contracted state.

Production milk and cream in Libya

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

World map of production of milk and cream, 2017-2020

Libya's milk and cream production saw a two-year increase before declining. In 2019, production reached its peak at 237.1 thousand tons, marking a 1.6% increase from the previous year. However, by 2020, production fell to 228.8 thousand tons, representing a moderate decline of 3.5% compared to 2019.

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

Exports milk and cream from Libya

Exports in kind, K t

In 2020, Libya's exports of milk and cream dropped to zero tons, a dramatic 99.8% decrease from the previous year.

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

From 2017 to 2020, Turkey and Gambia were the key destinations for Libya's milk and cream exports in volume terms, together accounting for 99.8% of total flows.

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

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

Exports in value, K $ US

Libya's milk and cream exports in value terms plummeted to just 1 thousand US dollars in 2020, a sharp 99.4% drop compared to 2019.

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

Between 2017 and 2020, the export market in value terms was highly concentrated, with Turkey alone responsible for 95.3% of total exports.

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

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

Imports milk and cream to Libya

Imports in kind, K t

Libya's milk and cream imports declined for the second consecutive year. In 2018, imports peaked at 119.8 thousand tons, a 20.3% increase from the previous year. By 2019, imports had decreased, and in 2020, they fell further to 78.3 thousand tons, a 23.3% drop compared to 2019. Over the 2017-2020 period, imports decreased by 21.3%, with a compound annual growth rate of -7.7%.

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

From 2017 to 2020, Italy, Turkey, and Spain were the main sources for Libya's milk and cream imports in volume terms, with shares of 30.6%, 13.4%, and 12.4% respectively, together accounting for 56.4% of total flows.

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

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

Imports in value, K $ US

Libya's milk and cream imports in value terms declined for the second year in a row. In 2018, imports reached their highest point at 86 460 thousand US dollars, a 22.2% increase from the previous year. This was followed by a 25.9% decline in 2019, and in 2020, imports fell to 53 519 thousand US dollars, down 16.5% from 2019. Overall, from 2017 to 2020, imports decreased by 24.4%, with a compound annual growth rate of -8.9%.

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

Between 2017 and 2020, Italy, Turkey, and Egypt were the primary sources for Libya's milk and cream imports in value terms, contributing 31.5%, 12.1%, and 11.7% respectively, with a combined share of 55.3% of total flows.

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

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