Latvia: Butter Market 2024

Butter Market Size in Latvia

The Latvian butter market skyrocketed to $X in 2022, increasing by 15% against the previous year. Overall, the total consumption indicated prominent growth from 2012 to 2022: its value increased at an average annual rate of +7.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +35.3% against 2020 indices. Butter consumption peaked in 2022 and is expected to retain growth in the immediate term.

Butter Production in Latvia

In value terms, butter production contracted slightly to $X in 2022 estimated in export price. Over the period under review, production, however, showed a pronounced reduction. The pace of growth appeared the most rapid in 2013 with an increase of 29% against the previous year. Over the period under review, production reached the peak level at $X in 2014; however, from 2015 to 2022, production failed to regain momentum.

Butter Exports

Exports from Latvia

In 2022, butter exports from Latvia surged to X tons, rising by 51% against the year before. In general, exports, however, faced a deep contraction. The most prominent rate of growth was recorded in 2013 when exports increased by 109% against the previous year. As a result, the exports attained the peak of X tons. From 2014 to 2022, the growth of the exports failed to regain momentum.

In value terms, butter exports surged to $X in 2022. Overall, exports, however, saw a abrupt downturn. The most prominent rate of growth was recorded in 2013 with an increase of 140% against the previous year. As a result, the exports attained the peak of $X. From 2014 to 2022, the growth of the exports remained at a lower figure.

Exports by Country

Estonia (X tons) was the main destination for butter exports from Latvia, accounting for a 66% share of total exports. Moreover, butter exports to Estonia exceeded the volume sent to the second major destination, Lithuania (X tons), fourfold. Germany (X tons) ranked third in terms of total exports with a 7.1% share.

From 2012 to 2022, the average annual growth rate of volume to Estonia amounted to +1.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: Lithuania (-13.7% per year) and Germany (-23.6% per year).

In value terms, Estonia ($X) remains the key foreign market for butter exports from Latvia, comprising 63% of total exports. The second position in the ranking was taken by Lithuania ($X), with a 16% share of total exports. It was followed by Germany, with a 7.6% share.

From 2012 to 2022, the average annual growth rate of value to Estonia totaled +2.3%. Exports to the other major destinations recorded the following average annual rates of exports growth: Lithuania (-10.1% per year) and Germany (-18.9% per year).

Export Prices by Country

In 2022, the average butter export price amounted to $X per ton, with an increase of 26% against the previous year. Overall, export price indicated a pronounced increase from 2012 to 2022: its price increased at an average annual rate of +3.6% 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 +49.0% against 2020 indices. The pace of growth was the most pronounced in 2018 when the average export price increased by 49%. Over the period under review, the average export prices attained the maximum in 2022 and is expected to retain growth in years to come.

Average prices varied noticeably for the major export markets. In 2022, amid the top suppliers, the countries with the highest prices were the Netherlands ($X per ton) and Lithuania ($X per ton), while the average price for exports to Estonia ($X per ton) and Poland ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Russia (+9.3%), while the prices for the other major destinations experienced more modest paces of growth.

Butter Imports

Imports into Latvia

In 2022, overseas purchases of butter decreased by -4.6% to X tons, falling for the second year in a row after five years of growth. Overall, imports, however, continue to indicate a remarkable increase. The growth pace was the most rapid in 2017 with an increase of 38% against the previous year. Over the period under review, imports reached the maximum at X tons in 2020; however, from 2021 to 2022, imports stood at a somewhat lower figure.

In value terms, butter imports surged to $X in 2022. Over the period under review, imports, however, showed strong growth. The most prominent rate of growth was recorded in 2017 when imports increased by 101% against the previous year. Over the period under review, imports reached the peak figure in 2022 and are likely to continue growth in the immediate term.

Imports by Country

In 2022, Poland (X tons) constituted the largest supplier of butter to Latvia, accounting for a 73% share of total imports. Moreover, butter imports from Poland exceeded the figures recorded by the second-largest supplier, Lithuania (X tons), fivefold. The third position in this ranking was held by Estonia (X tons), with a 9.8% share.

From 2012 to 2022, the average annual growth rate of volume from Poland totaled +28.0%. The remaining supplying countries recorded the following average annual rates of imports growth: Lithuania (-8.6% per year) and Estonia (+33.8% per year).

In value terms, Poland ($X) constituted the largest supplier of butter to Latvia, comprising 70% of total imports. The second position in the ranking was held by Lithuania ($X), with a 15% share of total imports. It was followed by Estonia, with an 11% share.

From 2012 to 2022, the average annual growth rate of value from Poland stood at +33.2%. The remaining supplying countries recorded the following average annual rates of imports growth: Lithuania (-3.9% per year) and Estonia (+37.3% per year).

Import Prices by Country

In 2022, the average butter import price amounted to $X per ton, surging by 30% against the previous year. In general, import price indicated a temperate expansion from 2012 to 2022: its price increased at an average annual rate of +4.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, butter import price increased by +54.1% against 2020 indices. The growth pace was the most rapid in 2017 when the average import price increased by 46%. The import price peaked in 2022 and is likely to continue growth in the near future.

Average prices varied noticeably amongst the major supplying countries. In 2022, amid the top importers, the countries with the highest prices were Lithuania ($X per ton) and Estonia ($X per ton), while the price for Poland ($X per ton) and the Netherlands ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Finland (+6.0%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform