Milk market in Vanuatu

Earlier Report Observations

From 2018 to 2020, Vanuatu's milk market was shaped by supportive agricultural policies and external disruptions. Government assistance through provincial officials and programs like PHAMA PLUS in 2018 helped stabilize the farming sector, although low productivity and high food inflation presented headwinds. The economic slowdown anticipated in 2019 influenced conditions before the COVID-19 pandemic in 2020 severely impacted trade and supply chains, leading to a contraction in the market volume to 3 793 t, despite government wage subsidies and stimulus packages aimed at mitigation.

The market entered a phase of recovery and sustained expansion from 2021 onward. Continued economic support policies helped the market rebound to 4 045 t in 2021. A major growth surge to 4 857 t occurred in 2022, driven by strategic developments including the launch of Vanuatu's first national e-commerce strategy, which improved marketing and distribution channels, and the significant investment in the 2022 National Agriculture Census funded by the European Union, enhancing sector planning. In 2023, ongoing initiatives to strengthen the agricultural supply chain supported further market growth to 5 367 t, even as the Port Vila central market reported decreased availability of some agricultural products.

Production milk in Vanuatu

In kind, 2017-2020, t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

In 2020, Vanuatu produced 2,319 tons of milk, representing a modest increase of 1.8% compared to the previous year. Looking at the broader period from 2017 to 2020, milk production declined by 2.8%, which translates to an average annual decrease of 0.9%. The lowest production level was recorded in 2019 at 2,277 tons, while the peak occurred in 2018 with 2,413 tons. The most significant year-over-year drop was observed in 2019, when production fell by 5.7%.

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

Exports milk from Vanuatu

Based on desk research, Vanuatu did not export any milk between 2017 and 2020.

Imports milk to Vanuatu

Imports in kind, t

In 2020, Vanuatu imported 1,474 tons of milk, reflecting a decrease of 14.1% from the previous year. Over the four-year span from 2017 to 2020, imports declined by 18.5%, averaging an annual reduction of 6.6%. The sharpest decline occurred in 2018, with a drop of 17.0%, while the largest increase was recorded in 2019, when imports rose by 14.3%.

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

From 2017 to 2020, Australia and New Zealand dominated Vanuatu's milk imports, accounting for 89.6% of the total volume. The remaining 10.4% was sourced from various other countries, each contributing smaller individual shares.

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

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

Imports in value, K $ US

Vanuatu's milk imports, measured in value terms, declined for the third consecutive year in 2020. The country imported approximately $2,686,000 worth of milk that year, marking a contraction of 1.4% compared to 2019. Over the period from 2017 to 2020, the value of imports decreased by 13.6%, with a compound annual growth rate (CAGR) of -4.7%.

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

Between 2017 and 2020, Australia, Fiji, and New Zealand were the main suppliers of milk to Vanuatu in value terms. Australia accounted for 45.9% of imports, Fiji for 26.2%, and New Zealand for 26.0%. Together, these three countries represented 98.0% of Vanuatu's total milk import value during this period.

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

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