Sri Lanka: Butter Market 2024

Butter Market Size in Sri Lanka

The Sri Lankan butter market was estimated at $X in 2022, almost unchanged from the previous year. Overall, the total consumption indicated measured growth from 2012 to 2022: its value increased at an average annual rate of +2.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption decreased by -13.9% against 2020 indices. Over the period under review, the market hit record highs at $X in 2020; however, from 2021 to 2022, consumption stood at a somewhat lower figure.

Butter Production in Sri Lanka

In value terms, butter production rose significantly to $X in 2022 estimated in export price. In general, production showed a resilient increase. The pace of growth appeared the most rapid in 2020 with an increase of 80% against the previous year. As a result, production reached the peak level of $X. From 2021 to 2022, production growth failed to regain momentum.

Butter Exports

Exports from Sri Lanka

In 2022, the amount of butter exported from Sri Lanka fell sharply to X kg, declining by -26.1% compared with the previous year. In general, exports, however, enjoyed measured growth. The most prominent rate of growth was recorded in 2014 when exports increased by 207% against the previous year. Over the period under review, the exports hit record highs at X tons in 2017; however, from 2018 to 2022, the exports failed to regain momentum.

In value terms, butter exports reduced to $X in 2022. Over the period under review, exports, however, continue to indicate a buoyant expansion. The most prominent rate of growth was recorded in 2014 with an increase of 200% against the previous year. Over the period under review, the exports attained the peak figure at $X in 2021, and then dropped in the following year.

Exports by Country

Maldives (X kg) was the main destination for butter exports from Sri Lanka, accounting for a 89% share of total exports. Moreover, butter exports to Maldives exceeded the volume sent to the second major destination, the UK (X kg), eightfold.

From 2012 to 2022, the average annual growth rate of volume to Maldives amounted to +1.3%.

In value terms, Maldives ($X) remains the key foreign market for butter exports from Sri Lanka, comprising 89% of total exports. The second position in the ranking was held by the UK ($X), with an 11% share of total exports.

From 2012 to 2022, the average annual growth rate of value to Maldives stood at +6.3%.

Export Prices by Country

In 2022, the average butter export price amounted to $X per ton, growing by 20% against the previous year. In general, export price indicated prominent growth from 2012 to 2022: its price increased at an average annual rate of +5.0% 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 decreased by -7.5% against 2020 indices. The pace of growth appeared the most rapid in 2020 when the average export price increased by 63% against the previous year. As a result, the export price reached the peak level of $X per ton. From 2021 to 2022, the average export prices failed to regain momentum.

Average prices varied noticeably for the major external markets. In 2022, amid the top suppliers, the country with the highest price was the UK ($X per ton), while the average price for exports to Maldives totaled $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Maldives (+4.9%), while the prices for the other major destinations experienced mixed trend patterns.

Butter Imports

Imports into Sri Lanka

In 2022, imports of butter into Sri Lanka reduced dramatically to X tons, dropping by -32.1% against 2021 figures. Overall, imports recorded a abrupt descent. The pace of growth was the most pronounced in 2016 when imports increased by 89% against the previous year. As a result, imports attained the peak of X tons. From 2017 to 2022, the growth of imports remained at a somewhat lower figure.

In value terms, butter imports fell rapidly to $X in 2022. In general, imports recorded a deep slump. The pace of growth was the most pronounced in 2016 with an increase of 85%. As a result, imports attained the peak of $X. From 2017 to 2022, the growth of imports remained at a somewhat lower figure.

Imports by Country

In 2022, New Zealand (X tons) constituted the largest butter supplier to Sri Lanka, accounting for a 46% share of total imports. Moreover, butter imports from New Zealand exceeded the figures recorded by the second-largest supplier, Denmark (X tons), threefold. The third position in this ranking was held by Australia (X tons), with a 15% share.

From 2012 to 2022, the average annual growth rate of volume from New Zealand stood at -14.6%. The remaining supplying countries recorded the following average annual rates of imports growth: Denmark (+13.1% per year) and Australia (-15.5% per year).

In value terms, New Zealand ($X), Denmark ($X) and Australia ($X) appeared to be the largest butter suppliers to Sri Lanka, together comprising 76% of total imports. India, the UK, Malaysia, France and the United Arab Emirates lagged somewhat behind, together accounting for a further 21%.

Among the main suppliers, Malaysia, with a CAGR of +581.9%, 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 more modest paces of growth.

Import Prices by Country

In 2022, the average butter import price amounted to $X per ton, flattening at the previous year. Over the period under review, import price indicated moderate growth from 2012 to 2022: its price increased at an average annual rate of +4.6% 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 +30.6% against 2020 indices. The most prominent rate of growth was recorded in 2017 an increase of 42% against the previous year. Over the period under review, average import prices attained the peak figure in 2022 and is likely to see gradual growth in the immediate term.

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 the UK ($X per ton), while the price for Malaysia ($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 UK (+24.0%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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