Milk with fat content of >1% and ≤6% market in North Macedonia

Earlier Report Observations

The market for milk with fat content above 1% and up to 6% in North Macedonia showed notable shifts between 2018 and 2024. Physical market volume reached a peak of 63 750 t in 2019, supported by high imports, before entering a multi-year decline. This period began with the implementation of updated quality and labeling rules for raw milk and dairy products in 2018, which established new standards for the sector.

Starting in late 2021, the government introduced a price freeze on basic foodstuffs, including specific types of fresh cow's milk, to control consumer costs. This measure was extended into early 2022 and was accompanied by a broader policy package that capped the gross profit margin for retailers and wholesalers of this milk at 10%. These regulations, designed to protect living standards, altered the commercial incentives for market participants. Concurrently, authorities signed a memorandum with Russia's veterinary service to define export conditions for Macedonian milk, aiming to open new trade channels.

The regulatory environment remained tight through 2024, as the government prolonged the cap on profit margins for packaged fresh milk. This sustained period of controlled pricing and margins coincided with a continued contraction in domestic production and overall market volume in physical terms, while the market's value in monetary terms gradually increased.

Production milk with fat content of >1% and ≤6% in North Macedonia

In value, 2017-2020, K $ US

Following a two-year decline, North Macedonia's production of milk with a fat content between 1% and 6% increased in 2020. The output was valued at 26 238 thousand US dollars, marking a gradual gain of 8.9% compared to the previous year. Over the period from 2017 to 2020, production decreased by 3.8%, which equates to an annualized rate of 1.3%. The lowest value was recorded in 2019 at 24 096 thousand US dollars, with the largest decline of 6.2% occurring that same year.

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

In kind, 2017-2020, t

After a two-year decrease, North Macedonia's production of milk with a fat content between 1% and 6% rose in 2020. A total of 34 533 tonnes were produced, reflecting a small uptick of 3.0% from the year before. From 2017 to 2020, production fell by 10.5%, corresponding to an annualized rate of 3.6%. The minimum volume was recorded in 2019 at 33 535 tonnes, while the largest decline of 8.8% took place in 2018.

Annual dynamics of production in North Macedonia in kind, 2017-2020, t

Exports milk with fat content of >1% and ≤6% from North Macedonia

Exports in kind, t

In 2020, North Macedonia's exports of milk with a fat content between 1% and 6% totalled 6 474 tonnes, representing a 32.5% decrease compared to the previous year. Between 2017 and 2020, exports declined by 11.1%, with an annualized rate of 3.8%. The lowest export volume was recorded in 2018 at 6 282 tonnes, while the peak occurred in 2019 with 9 591 tonnes, marking the largest increase of 52.7% that year.

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

From 2017 to 2020, Serbia, Albania, and Montenegro consistently led the country structure of exports in kind. Serbia accounted for 60.7% of exports, Albania for 13.2%, and Montenegro for 1.2%, collectively making up 75.0% of total flows.

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

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

Exports in value, K $ US

In 2020, North Macedonia's exports of milk with a fat content between 1% and 6% amounted to 3 982 thousand US dollars, showing a steep reduction of 30.3% compared to 2019. Over the 2017-2020 period, exports increased by 4.4%, with a compound annual growth rate of 1.5%. The minimum value was recorded in 2018 at 3 780 thousand US dollars, while the maximum was in 2019 at 5 710 thousand US dollars, when the largest increase of 51.1% occurred.

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

Between 2017 and 2020, Serbia, Albania, and Montenegro were the main destinations for North Macedonia's milk exports in value terms. Serbia accounted for 63.1% of exports, Albania for 12.8%, and Montenegro for 1.4%, together representing 77.4% of total export value.

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

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

Imports milk with fat content of >1% and ≤6% to North Macedonia

Imports in kind, t

After a two-year rise, North Macedonia's imports of milk with a fat content between 1% and 6% declined in 2020. Imports totalled 34 984 tonnes, which is 12.1% less than in 2019. From 2017 to 2020, imports increased by 93.8%, with a compound annual growth rate of 24.7%. The highest import volume was recorded in 2019 at 39 806 tonnes, while the largest increase of 51.6% took place in 2018.

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

Over the 2017-2020 period, Bosnia and Herzegovina and Serbia consistently accounted for 89.7% of total imports in kind, indicating a high degree of concentration, with other markets contributing smaller shares.

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

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

Imports in value, K $ US

Following a two-year increase, North Macedonia's imports of milk with a fat content between 1% and 6% decreased in 2020. Imports amounted to 17 917 thousand US dollars, corresponding to a moderate decline of 6.2% from the previous year. Between 2017 and 2020, imports grew by 70.2%, with a compound annual growth rate of 19.4%. The maximum value was recorded in 2019 at 19 109 thousand US dollars, and the largest increase of 43.6% occurred in 2018.

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

Throughout 2017-2020, Bosnia and Herzegovina and Serbia concentrated most of the import value for milk with a fat content between 1% and 6% into North Macedonia, while other markets played less significant roles individually.

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

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