Milk market in Madagascar

Earlier Report Observations

Between 2018 and 2019, Madagascar's milk market volume grew slightly, reaching 497.4 thousand tons. This was supported by the adoption of a new competition law in 2018, which helped regulate the market framework. In 2019, a significant influx of imported milk powder, amounting to nearly 86 million liters, contributed to maintaining overall market supply despite raising concerns for local producers.

A multi-year decline followed from 2020 to 2022, with the market volume contracting to 397.0 thousand tons. This downturn was driven by deep-rooted structural challenges within the local dairy sector, including the low productivity of local cattle and persistently high production costs, which limited output. The launch of a livestock traceability system (LITS) in 2022 aimed at addressing these issues but did not yield immediate market expansion.

The market rebounded in 2023 to 447.6 thousand tons, primarily due to the launch of the EU-funded PROFI Lait project. This initiative directly supported 1,400 farmers with equipment and aimed to improve milk quality and herd management, leading to increased domestic production and consumption.

Production milk in Madagascar

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Madagascar produced 456.0 thousand tons of milk in 2020, which represents a 5.6% decrease compared to the previous year. Looking at the period from 2017 to 2020, milk production fell by 16.4%, with an average annual decline of 5.8%. The most significant drop occurred in 2018, when production decreased by 12.4%. In contrast, 2019 saw a modest increase of 1.0%.

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

Exports milk from Madagascar

Exports in kind, t

The market showed considerable volatility during this period. Export volumes reached their highest point in 2017 and fell to their lowest in 2018, representing a dramatic 422-fold difference. In 2020, Madagascar exported just 1 ton of milk, marking a sharp 99.8% decline from 2019 levels.

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

From 2017 to 2020, France was clearly the dominant buyer of milk from Madagascar, accounting for 95.2% of total exports in volume terms.

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

Market behavior was characterized by significant volatility during these years. Exports peaked in 2017 and hit their lowest point in 2018, with a staggering 831-fold difference between these two years. In 2020, Madagascar exported milk worth 4 thousand US dollars, indicating a dramatic year-over-year drop of 99.9%.

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

Throughout the 2017-2020 period, France played the leading role in Madagascar's milk exports by value, capturing 85.5% of total export flows, while all other markets combined accounted for the remaining share.

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

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

Imports milk to Madagascar

Imports in kind, t

After two years of growth, Madagascar's milk imports declined. In 2020, imports totaled 11 016 tons, representing a 23.6% decrease compared to the previous year. Between 2017 and 2020, imports fell by 19.2%, which translates to an average annual decline of 6.9%. The highest import volume was recorded in 2019 at 14 423 tons, which also marked the largest annual increase of 4.0%.

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

From 2017 to 2020, Malaysia (with 62.7% of import volume), France (12.2%), and Belgium (6.2%) formed the main group of suppliers for Madagascar's milk imports, together accounting for 81.1% of total import flows in volume terms.

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 improvement, Madagascar's milk import value declined. In 2020, imports amounted to 19 393 thousand US dollars, showing an 8.3% drop compared to 2019. Over the 2017-2020 period, import value decreased by 2.2%, with an average annual decline of 0.7%. The peak import value was recorded in 2019 at 21 155 thousand US dollars, while the largest annual increase occurred in 2018 at 6.4%.

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

During the 2017-2020 period, Malaysia (with 42.8% of import value), France (25.9%), and New Zealand (10.4%) were the primary suppliers of milk to Madagascar, jointly accounting for 79.1% of total imports in value terms.

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

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