Kenya: Butter Market 2024

Butter Market Size in Kenya

The Kenyan butter market declined to $X in 2022, with a decrease of -7.6% against the previous year. The market value increased at an average annual rate of +2.2% from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded in certain years. Butter consumption peaked at $X in 2019; however, from 2020 to 2022, consumption stood at a somewhat lower figure.

Butter Production in Kenya

In value terms, butter production shrank to $X in 2022 estimated in export price. Over the period under review, production, however, recorded a noticeable expansion. The most prominent rate of growth was recorded in 2014 when the production volume increased by 114%. Butter production peaked at $X in 2019; however, from 2020 to 2022, production remained at a lower figure.

Butter Exports

Exports from Kenya

In 2022, after two years of growth, there was significant decline in shipments abroad of butter, when their volume decreased by -27.5% to X tons. Over the period under review, exports, however, enjoyed a remarkable increase. The most prominent rate of growth was recorded in 2020 when exports increased by 671% against the previous year. Over the period under review, the exports reached the peak figure at X tons in 2016; however, from 2017 to 2022, the exports remained at a lower figure.

In value terms, butter exports fell remarkably to $X in 2022. In general, exports, however, continue to indicate prominent growth. The most prominent rate of growth was recorded in 2020 when exports increased by 401% against the previous year. The exports peaked at $X in 2021, and then shrank sharply in the following year.

Exports by Country

Uganda (X tons) was the main destination for butter exports from Kenya, with a 83% share of total exports. Moreover, butter exports to Uganda exceeded the volume sent to the second major destination, South Sudan (X tons), more than tenfold. Rwanda (X tons) ranked third in terms of total exports with a 2.4% share.

From 2012 to 2022, the average annual rate of growth in terms of volume to Uganda amounted to +22.3%. Exports to the other major destinations recorded the following average annual rates of exports growth: South Sudan (+2.1% per year) and Rwanda (+4.7% per year).

In value terms, Uganda ($X) remains the key foreign market for butter exports from Kenya, comprising 70% of total exports. The second position in the ranking was held by South Sudan ($X), with an 8.2% share of total exports. It was followed by Rwanda, with a 4.6% share.

From 2012 to 2022, the average annual growth rate of value to Uganda amounted to +29.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: South Sudan (+8.6% per year) and Rwanda (+12.8% per year).

Export Prices by Country

The average butter export price stood at $X per ton in 2022, which is down by -13.2% against the previous year. Overall, export price indicated a remarkable increase from 2012 to 2022: its price increased at an average annual rate of +6.0% 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 +56.4% against 2020 indices. The most prominent rate of growth was recorded in 2021 when the average export price increased by 80%. As a result, the export price attained the peak level of $X per ton, and then dropped in the following year.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was South Sudan ($X per ton), while the average price for exports to the United Arab Emirates ($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 Tanzania (+11.9%), while the prices for the other major destinations experienced more modest paces of growth.

Butter Imports

Imports into Kenya

In 2022, purchases abroad of butter increased by 51% to X tons for the first time since 2018, thus ending a three-year declining trend. Overall, imports, however, saw a abrupt curtailment. The pace of growth was the most pronounced in 2017 when imports increased by 82%. Over the period under review, imports attained the maximum at X tons in 2018; however, from 2019 to 2022, imports remained at a lower figure.

In value terms, butter imports skyrocketed to $X in 2022. In general, imports, however, showed a deep contraction. The pace of growth appeared the most rapid in 2017 when imports increased by 72% against the previous year. Imports peaked at $X in 2018; however, from 2019 to 2022, imports failed to regain momentum.

Imports by Country

Uganda (X tons), Ireland (X tons) and New Zealand (X tons) were the main suppliers of butter imports to Kenya, together comprising 79% of total imports. Denmark, Rwanda, the United Arab Emirates, the UK, Belgium and South Africa lagged somewhat behind, together comprising a further 18%.

From 2012 to 2022, the biggest increases were recorded for Rwanda (with a CAGR of +16.8%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, Uganda ($X), New Zealand ($X) and Ireland ($X) were the largest butter suppliers to Kenya, with a combined 72% share of total imports. Denmark, the United Arab Emirates, Rwanda, the UK, Belgium and South Africa lagged somewhat behind, together comprising a further 24%.

In terms of the main suppliers, Denmark, with a CAGR of +10.1%, saw the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced mixed trend patterns.

Import Prices by Country

The average butter import price stood at $X per ton in 2022, shrinking by -12.4% against the previous year. Over the last decade, it increased at an average annual rate of +2.1%. The pace of growth was the most pronounced in 2014 when the average import price increased by 38% against the previous year. Over the period under review, average import prices hit record highs at $X per ton in 2021, and then reduced in the following year.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was the United Arab Emirates ($X per ton), while the price for South Africa ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United Arab Emirates (+15.5%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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