Milk powder market in Portugal

Earlier Report Observations

At the start of the period, the milk powder market volume in Portugal contracted. The abolition of EU milk quotas and subsequent market liberalization increased price volatility and accelerated sector concentration through the merger of major cooperatives. By 2020, the temporary suspension of milk purchase contracts by industry and European Union intervention, which limited sales of skimmed milk powder, further reduced domestic availability, pushing market volume down to 15 504 tons.

From 2021, the market began to recover. Rising production costs, amplified by the conflict in Ukraine, led to a significant increase in milk prices for producers in 2022, initially depressing domestic output. However, the subsequent recovery of milk powder prices in the European market and support campaigns for the sector contributed to a sharp production rebound in 2023, lifting market volume to 24 319 tons.

In 2024, market volume fell to 20 660 tons, coinciding with continued EU market intervention that set sales limits for skimmed milk powder. Simultaneously, producers implemented new labeling requirements such as Nutri-Score and sustainable packaging for products, as seen with the Nido brand.

Production milk powder in Portugal

In value, 2018-2021, M $ US

Portugal's milk powder production has increased for the third consecutive year. In 2021, the output was valued at 118.5 million US dollars, marking a 22.6% rise compared to the previous year. Between 2018 and 2021, production grew by 50.9%, which translates to an annualized growth rate of 14.7%.

Annual dynamics of production in Portugal in value, 2018-2021, M $ US

In kind, 2018-2021, t

From 2018 to 2021, Portugal ranked 29th globally in terms of milk powder production volume.

Top producers of milk powder, 2018-2021

World map of production of milk powder, 2018-2021

In 2021, Portugal produced 36 539 tonnes of milk powder, showing a modest year-on-year increase of 9.4%. Between 2018 and 2021, production rose by 15.6%, equivalent to an annualized rate of 5.0%. The largest increase occurred in 2019, at 14.2%, while the largest decline was recorded in 2020, at 7.4%.

Annual dynamics of production in Portugal in kind, 2018-2021, t

Exports milk powder from Portugal

Exports in kind, t

Milk powder exports from Portugal have increased for the third consecutive year. In 2021, exports totaled 32 114 tonnes, up by 12.1% from the previous year. Between 2018 and 2021, exports grew by 63.3%, corresponding to an annualized growth rate of 17.8%.

Annual dynamics of product's exports from Portugal in kind, 2018-2021, t

From 2018 to 2021, Spain, the Netherlands, and Italy formed the main cluster of markets for Portugal's milk powder exports in kind. Spain accounted for 36.1% of exports, the Netherlands for 32.7%, and Italy for 5.2%, with their combined share reaching 74.0% of total flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Portugal in kind, 2018-2021

Exports in value, M $ US

Portugal's milk powder export volume has increased for the third consecutive year. In 2021, exports amounted to 106.3 million US dollars, reflecting a sharp gain of 27.1% compared to 2020. Over the period from 2018 to 2021, exports increased by 119.8%, with a compound annual growth rate of 30.0%.

Annual dynamics of product's exports from Portugal in value, 2018-2021, M $ US

From 2018 to 2021, Spain, the Netherlands, and Angola were the top buyers of milk powder from Portugal in value terms. Spain represented 34.3% of exports, the Netherlands 29.5%, and Angola 5.6%, with their combined share totaling 69.4% of total exports.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Portugal in value, 2018-2021

Imports milk powder to Portugal

Imports in kind, t

In 2021, Portugal's milk powder imports were recorded at 11 678 tonnes, showing a moderate improvement of 8.6% compared to the previous year. Over the period from 2018 to 2021, imports increased by 17.8%, with a compound annual growth rate of 5.6%. The largest increase occurred in 2019, at 11.1%, while the largest decline was in 2020, at 2.4%.

Annual dynamics of product's imports to Portugal in kind, 2018-2021, t

Throughout 2018 to 2021, Spain, Germany, and the Netherlands formed the key group of partners for Portugal's milk powder imports in kind. Spain accounted for 53.1% of imports, Germany for 17.1%, and the Netherlands for 16.8%, jointly representing 87.0% of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Portugal in kind, 2018-2021

Imports in value, M $ US

Portugal's milk powder import volume has increased for the third consecutive year. In 2021, imports were approximately 37.8 million US dollars, reflecting a solid year-on-year gain of 21.3%. Over the period from 2018 to 2021, imports grew by 50.1%, with a compound annual growth rate of 14.5%.

Annual dynamics of product's imports to Portugal in value, 2018-2021, M $ US

From 2018 to 2021, Spain, Germany, and the Netherlands consistently held leading positions in Portugal's milk powder import structure in value terms. Spain represented 51.7% of imports, Germany 18.2%, and the Netherlands 16.8%, with their combined share accounting for 86.6% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Portugal in value, 2018-2021