South Africa: Butter Market 2024

Butter Market Size in South Africa

The South African butter market fell modestly to $X in 2022, flattening at the previous year. Over the period under review, the total consumption indicated slight growth from 2012 to 2022: its value increased at an average annual rate of +1.4% 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 +11.6% against 2019 indices. Butter consumption peaked at $X in 2018; however, from 2019 to 2022, consumption failed to regain momentum.

Butter Production in South Africa

In value terms, butter production rose notably to $X in 2022 estimated in export price. Overall, the total production indicated a remarkable increase from 2012 to 2022: its value increased at an average annual rate of +5.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +18.0% against 2019 indices. The pace of growth appeared the most rapid in 2013 with an increase of 91%. As a result, production reached the peak level of $X. From 2014 to 2022, production growth failed to regain momentum.

Butter Exports

Exports from South Africa

In 2022, the amount of butter exported from South Africa expanded sharply to X tons, increasing by 8.6% against 2021. Overall, exports, however, showed a pronounced reduction. The pace of growth was the most pronounced in 2014 when exports increased by 92% against the previous year. As a result, the exports reached the peak of X tons. From 2015 to 2022, the growth of the exports remained at a lower figure.

In value terms, butter exports rose remarkably to $X in 2022. In general, total exports indicated noticeable growth from 2012 to 2022: its value increased at an average annual rate of +2.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports decreased by +0.8% against 2018 indices. The most prominent rate of growth was recorded in 2018 with an increase of 78% against the previous year. Over the period under review, the exports hit record highs at $X in 2014; however, from 2015 to 2022, the exports remained at a lower figure.

Exports by Country

Namibia (X tons), Mozambique (X tons) and Botswana (X tons) were the main destinations of butter exports from South Africa, with a combined 74% 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 Namibia (with a CAGR of +4.7%), while the other leaders experienced more modest paces of growth.

In value terms, Namibia ($X), Mozambique ($X) and Botswana ($X) were the largest markets for butter exported from South Africa worldwide, with a combined 66% share of total exports. Zambia, Mauritius, Malawi, Democratic Republic of the Congo and Zimbabwe lagged somewhat behind, together accounting for a further 27%.

Among the main countries of destination, Democratic Republic of the Congo, with a CAGR of +11.7%, recorded the highest rates of growth with regard to the value of exports, 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, increasing by 1.8% against the previous year. In general, export price indicated buoyant growth from 2012 to 2022: its price increased at an average annual rate of +5.5% 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 +16.2% against 2019 indices. The pace of growth was the most pronounced in 2013 when the average export price increased by 49% against the previous year. Over the period under review, the average export prices attained the maximum at $X per ton in 2018; however, from 2019 to 2022, the export prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Mauritius ($X per ton), while the average price for exports to Botswana ($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 Egypt (+99.3%), while the prices for the other major destinations experienced more modest paces of growth.

Butter Imports

Imports into South Africa

In 2022, approx. X tons of butter were imported into South Africa; with a decrease of -14.9% on the previous year. In general, imports continue to indicate a deep downturn. The most prominent rate of growth was recorded in 2015 with an increase of 122% against the previous year. Over the period under review, imports reached the maximum at X tons in 2018; however, from 2019 to 2022, imports stood at a somewhat lower figure.

In value terms, butter imports reduced to $X in 2022. Over the period under review, imports continue to indicate a slight setback. The pace of growth was the most pronounced in 2018 with an increase of 75% against the previous year. As a result, imports attained the peak of $X. From 2019 to 2022, the growth of imports remained at a lower figure.

Imports by Country

In 2022, New Zealand (X tons) constituted the largest supplier of butter to South Africa, accounting for a 39% share of total imports. Moreover, butter imports from New Zealand exceeded the figures recorded by the second-largest supplier, Uruguay (X tons), twofold. Ireland (X tons) ranked third in terms of total imports with a 19% share.

From 2012 to 2022, the average annual growth rate of volume from New Zealand amounted to -10.6%. The remaining supplying countries recorded the following average annual rates of imports growth: Uruguay (+38.2% per year) and Ireland (-3.1% per year).

In value terms, New Zealand ($X), Uruguay ($X) and Ireland ($X) were the largest butter suppliers to South Africa, with a combined 76% share of total imports.

Among the main suppliers, Uruguay, with a CAGR of +46.0%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

The average butter import price stood at $X per ton in 2022, growing by 12% against the previous year. Overall, import price indicated a temperate expansion from 2012 to 2022: its price increased at an average annual rate of +3.9% 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 +25.7% against 2020 indices. The pace of growth was the most pronounced in 2017 an increase of 57% against the previous year. The import price peaked at $X per ton in 2018; however, from 2019 to 2022, import prices failed to regain momentum.

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 Denmark ($X per ton), while the price for the UK ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by New Zealand (+6.4%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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