Milk market in Botswana

Earlier Report Observations

Botswana's milk sector faced underdevelopment at the start of the period, with production at 35 844 t in 2018 and market volume reaching 87 326 t, heavily reliant on imports. High feed costs, lack of land for feed production, and low farmer profitability due to production costs exceeding market prices constrained growth, compounded by earlier Foot and Mouth disease outbreaks. By 2019, production dipped to 33 334 t while market volume stabilized at 85 812 t. In 2020, government decisions to allow live cattle exports and provide interest-free loans through financial assistance programs supported a production increase to 35 060 t, while market volume surged to 103 159 t driven by a rise in imports to 68 110 t.

Continued government support through subsidized breeding inputs like sexed semen and the introduction of an agricultural clustering system to reduce costs and improve service access helped lift milk production to 38 342 t in 2022. During this period, the establishment of the Meat Industry Regulatory Authority (MIRA) aimed to regulate the meat industry and promote competitiveness. However, market volume declined to 94 201 t in 2022 as imports fell to 55 863 t.

The launch of the Milk Valley Farm in 2023 by Botswana Development Corporation, with a P70 million investment targeting 18 million liters of annual production, marked a significant entry of a new player aiming to meet 29% of national demand. Nevertheless, milk production dropped to 34 152 t and market volume fell to 88 936 t, influenced by persistent challenges including recurrent droughts, disease outbreaks, and expensive feeds. Government efforts continued into 2024 with climate-smart farming promotion and partnerships, such as with Kenya, to bolster the dairy industry.

Production milk in Botswana

In kind, 2017-2020, t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Botswana's milk production rebounded in 2020 after a two-year decline. The country produced 35 060 tonnes of milk that year, representing a 5.2% increase from 2019. Looking at the broader 2017-2020 period, overall production decreased by 2.6%, with an average annual growth rate of 0.9%. The lowest production level was recorded in 2019 at 33 334 tonnes, which also saw the largest annual decline of 7.0%.

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

In value, 2017-2020, K $ US

Botswana's milk production value declined for the third consecutive year in 2020. Output was valued at 49 978 thousand US dollars, marking a substantial year-on-year decrease of 21.0%. Over the 2017-2020 period, the production value fell by 46.1%, with an average annual decline rate of 18.6%.

Annual dynamics of production in Botswana in value, 2017-2020, K $ US

Exports milk from Botswana

Exports in kind, t

The market experienced noticeable fluctuations during this period. Exports peaked in 2017 and reached their lowest point in 2020, with a 19-fold difference between these years. In 2020, Botswana's cross-border milk shipments totaled just 11 tonnes, representing a steep 94.4% reduction from the previous year. The largest annual increase occurred in 2019 at 45.8%.

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

From 2017 to 2020, South Africa served as the primary destination for Botswana's milk exports, consistently absorbing 94.7% of total export volumes.

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

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

Exports in value, K $ US

Market behavior showed significant volatility during these years. Export values peaked in 2017 and hit their lowest point in 2020, with a 34-fold gap between these extremes. In 2020, milk exports from Botswana amounted to 16 thousand US dollars, reflecting a dramatic 95.8% decline compared to the previous year. The largest annual increase was recorded in 2019 at 32.2%.

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

Throughout the 2017-2020 period, South Africa remained the main outlet for Botswana's milk exports, consistently accounting for 95.5% of total export value.

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

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

Imports milk to Botswana

Imports in kind, t

Botswana's milk import volumes increased for the third consecutive year in 2020. Imports reached 68 110 tonnes, up 29.3% from 2019. Between 2017 and 2020, imports grew by 41.7%, equating to an average annual growth rate of 12.3%.

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

From 2017 to 2020, South Africa dominated Botswana's milk import structure, consistently accounting for 99.2% of total import volumes.

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

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

Imports in value, K $ US

In 2020, Botswana's milk imports were valued at 31 550 thousand US dollars, representing a 9.4% increase from 2019. The lowest value was recorded in 2019 at 28 845 thousand US dollars, while the highest occurred in 2018 at 33 199 thousand US dollars. The largest annual decline took place in 2019 at 13.1%.

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

During the 2017-2020 period, Botswana's milk imports in value terms were almost entirely concentrated in South Africa, which accounted for 99.1% of total imports.

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

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