Ethiopia: Butter Market 2024

Butter Market Size in Ethiopia

The Ethiopian butter market rose slightly to $X in 2022, growing by 3.9% against the previous year. The market value increased at an average annual rate of +3.3% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. Butter consumption peaked at $X in 2020; however, from 2021 to 2022, consumption remained at a lower figure.

Butter Production in Ethiopia

In value terms, butter production expanded remarkably to $X in 2022 estimated in export price. In general, the total production indicated resilient growth from 2012 to 2022: its value increased at an average annual rate of +6.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production decreased by -5.0% against 2020 indices. The pace of growth appeared the most rapid in 2013 with an increase of 62%. Over the period under review, production reached the maximum level at $X in 2014; however, from 2015 to 2022, production remained at a lower figure.

Butter Exports

Exports from Ethiopia

In 2022, shipments abroad of butter was finally on the rise to reach X tons after four years of decline. Over the period under review, exports, however, recorded a abrupt contraction. The exports peaked at X tons in 2017; however, from 2018 to 2022, the exports remained at a lower figure.

In value terms, butter exports skyrocketed to $X in 2022. In general, exports, however, showed a abrupt slump. The most prominent rate of growth was recorded in 2014 when exports increased by 111% against the previous year. Over the period under review, the exports reached the peak figure at $X in 2016; however, from 2017 to 2022, the exports remained at a lower figure.

Exports by Country

Sudan (X tons), Mozambique (X tons) and the United States (X kg) were the main destinations of butter exports from Ethiopia, with a combined 77% share of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by the United States (with a CAGR of +30.8%), while the other leaders experienced more modest paces of growth.

In value terms, Sudan ($X), the United States ($X) and Australia ($X) were the largest markets for butter exported from Ethiopia worldwide, with a combined 72% share of total exports.

The United States, with a CAGR of +35.1%, recorded the highest rates of growth with regard to the value of exports, among the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2022, the average butter export price amounted to $X per ton, shrinking by -8.1% against the previous year. Overall, export price indicated a perceptible increase from 2012 to 2022: its price increased at an average annual rate of +4.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, butter export price increased by +20.7% against 2019 indices. The most prominent rate of growth was recorded in 2013 when the average export price increased by 45%. The export price peaked at $X per ton in 2015; however, from 2016 to 2022, the export prices stood at a somewhat lower figure.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was the United States ($X per ton), while the average price for exports to South Africa ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Botswana (+8.7%), while the prices for the other major destinations experienced more modest paces of growth.

Butter Imports

Imports into Ethiopia

In 2022, supplies from abroad of butter increased by 36% to X tons for the first time since 2019, thus ending a two-year declining trend. In general, imports saw a significant expansion. The most prominent rate of growth was recorded in 2018 when imports increased by 146%. Imports peaked at X tons in 2019; however, from 2020 to 2022, imports failed to regain momentum.

In value terms, butter imports soared to $X in 2022. Overall, imports enjoyed significant growth. The pace of growth was the most pronounced in 2017 with an increase of 192%. Imports peaked at $X in 2019; however, from 2020 to 2022, imports stood at a somewhat lower figure.

Imports by Country

In 2022, Yemen (X tons) constituted the largest supplier of butter to Ethiopia, with a 64% share of total imports. Moreover, butter imports from Yemen exceeded the figures recorded by the second-largest supplier, Egypt (X tons), threefold. Kenya (X tons) ranked third in terms of total imports with a 3.2% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from Yemen totaled +19.4%. The remaining supplying countries recorded the following average annual rates of imports growth: Egypt (+67.6% per year) and Kenya (+110.2% per year).

In value terms, Yemen ($X) constituted the largest supplier of butter to Ethiopia, comprising 67% of total imports. The second position in the ranking was held by France ($X), with an 11% share of total imports. It was followed by Kenya, with a 6.5% share.

From 2012 to 2022, the average annual growth rate of value from Yemen stood at +27.8%. The remaining supplying countries recorded the following average annual rates of imports growth: France (+31.4% per year) and Kenya (+109.3% per year).

Import Prices by Country

In 2022, the average butter import price amounted to $X per ton, growing by 4.6% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +1.7%. The pace of growth was the most pronounced in 2015 when the average import price increased by 41% against the previous year. Over the period under review, average import prices attained the peak figure at $X per ton in 2019; however, from 2020 to 2022, import prices remained at a lower figure.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was France ($X per ton), while the price for Egypt ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Yemen (+7.0%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Platform