Milk market in Malawi

Earlier Report Observations

Milk production in Malawi began a steady rise from 2018, largely due to the active role of the state-owned Malawi Dairy Industries in processing and marketing, along with training farmers to improve milk quality and yields. Government programs upgrading milk collection centers with cooling facilities and organizing farmers into bulking groups enhanced marketing efficiency and reduced wastage, while the importation of dairy animals and crossbreeding programs aimed at boosting herd productivity.

Despite operational challenges faced by milk bulking groups in 2019, such as equipment breakdowns and market crises leading to informal vending, production continued to grow. The restructuring of institutions in 2021, including strengthening Malawi Dairy Industries and the Cold Storage Company, improved service delivery and operational efficiency, supporting further production expansion.

By 2023, milk production reached 224.5 thousand tons, although processing plants remained heavily dependent on imported milk powder to meet demand. The regulatory environment, including product standardization and labeling by the Malawi Bureau of Standards, remained weak in enforcement, but overall market growth persisted, aided by ongoing government initiatives for smallholder dairy development.

Production milk in Malawi

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Malawi's milk production has grown for the third year in a row. In 2020, the country produced 201.7 thousand tons of milk, marking a 1.6% increase from 2019. Over the period from 2017 to 2020, production rose by 12.8%, with an average annual growth rate of 4.1%.

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

Exports milk from Malawi

Exports in kind, t

The market experienced significant fluctuations during this period. Exports reached their lowest point in 2019 at 1 ton, then surged to a peak of 59 tons in 2020, representing a 58-fold difference. This jump in 2020 translated to a year-over-year increase of 5,675.0%. The largest decline occurred in 2019, with a drop of 96.6%.

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

From 2017 to 2020, the United Arab Emirates, Zambia, and Mozambique were the top contributors to Malawi's milk exports in volume. The United Arab Emirates accounted for 50.0% of exports, Zambia for 27.2%, and Mozambique for 22.7%, together making up 100.0% of total export flows.

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

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

Exports in value, K $ US

The market displayed notable volatility over the observed years. Exports in value terms hit a low of 1 thousand US dollars in 2019, then climbed to a high of 133 thousand US dollars in 2020, a 146-fold increase. This sharp rise in 2020 amounted to a year-over-year growth of 14,454.0%. The largest decline was recorded in 2019, at 96.6%.

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

Between 2017 and 2020, the United Arab Emirates was the leading buyer of Malawian milk in value terms, holding 71.1% of total exports. The remaining share was distributed among various other countries.

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

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

Imports milk to Malawi

Imports in kind, t

Following a two-year decline, Malawi's milk imports rebounded in 2020. Imports totaled 2,514 tons that year, showing a robust 13.9% increase from the previous year. However, over the full period from 2017 to 2020, imports decreased by 39.3%, which corresponds to an average annual decline of 15.3%. The lowest volume was recorded in 2019 at 2,208 tons, with the largest drop of 38.5% also occurring that year.

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

From 2017 to 2020, South Africa, Ireland, and Malaysia were the primary sources of Malawi's milk imports by volume. South Africa contributed 33.0% of imports, Ireland 27.7%, and Malaysia 12.5%, together accounting for 73.3% of total import flows.

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

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

Imports in value, K $ US

After two years of reduction, Malawi's milk imports in value terms increased in 2020. Imports reached 6,066 thousand US dollars that year, reflecting a strong 19.7% uptick compared to 2019. Despite this, over the 2017-2020 period, imports fell by 46%, equivalent to an average annual decrease of 18.5%. The minimum value was 5,070 thousand US dollars in 2019, which also saw the largest decline of 50.3%.

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

Throughout 2017 to 2020, Ireland, South Africa, and Malaysia remained the key sources for Malawi's milk imports in value terms. Ireland accounted for 36.9% of imports, South Africa for 26.8%, and Malaysia for 11.0%, together making up 74.7% of total import flows.

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

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