New Zealand Dairy Industry Overview

The dairy industry in New Zealand is a cornerstone of its economy and a significant player in global dairy markets. Renowned for its high-quality dairy products and robust agricultural practices, New Zealand sets a high standard in the dairy sector.

Production and Processing Metrics

Number of Dairy Cattle (2023): 5.1 million

Milk Production Volume (2023): Approximately 21.4 billion liters per year

Milk Processing Volume (2023): 20 billion liters per year

Cheese Production Volume (2024 Forecast): 375,000 tons

Milk Powder Production (2023): Approximately 1.5 million tons

Whey Production (2023): Data currently unavailable

Key Enterprises in the Dairy Market

Dairy Plants

• Fonterra
• Synlait Milk
• Westland Milk Products
• Yili
• Bright Dairy
• Pure Nutrition

Dairy Farms

• Organic Dairy Hub (ODH)
• Various privately-owned farms
• Fonterra-affiliated farms

Exports and Imports

Export of Dairy Products (2023): Approximately NZ$18.2 billion worth of dairy products

Import of Dairy Products (2023): Data unavailable due to unreported small-scale imports

Significant Events in the Dairy Industry

• New Zealand dairy farmers face their highest costs in ten years due to significant inflationary pressures.
• Synlait Milk finds itself in a precarious financial situation, with its future largely hinging on a forthcoming shareholder vote.
• Bright Dairy, a stakeholder in Synlait, is barred from voting on the proposal due to New Zealand trading regulations.
• Yili adheres to top international dairy standards, ensuring its products meet rigorous health and nutritional standards across various regions including the U.S., the EU, Australia, New Zealand, and Japan.
• ANZ agricultural economist Susan Kilsby noted that high demand for Anhydrous Milk Fat (AMF) and butter was driving up farm milk prices.
• Ausnutria Dairy sold its 60% stake in the New Zealand-based Pure Nutrition venture to Westland Milk Products for NZ$31.1 million (approximately $19 million).
• Synlait Milk retracted its annual earnings outlook.
• The liquidation of Organic Dairy Hub (ODH), once New Zealand's sole 100% farmer-owned organic milk producer, is progressing steadily.
• Fonterra, New Zealand's largest greenhouse gas emitter and fourth-largest power user, expressed concerns that the government’s recent withdrawal of decarbonisation incentives could slow electrification efforts.
• Fonterra is expanding its presence in Japan and considering significant job cuts at its Waikato headquarters.
• The U.S. Department of Agriculture forecasts a modest decline in New Zealand's whole milk powder (WMP) production for 2024.
• New Zealand's efforts to implement specific nutritional labeling on infant formula have been thwarted.
• New Zealand's fluid milk production is projected to decrease by 0.7% to 21.1 million tons in 2024.
• Fonterra, New Zealand's leading dairy cooperative, has expressed concerns over the sharp increase in wholesale electricity prices and the ongoing uncertainty in the gas market, which are threatening the country's export competitiveness.
• New Zealand continues to face challenges due to an El Niño weather pattern, which has adversely affected milk production. June milk output was down 1.1% year-on-year.
• Fonterra announced its intention to divest from its global consumer and integrated businesses, including well-known brands like Anchor, Fernleaf, and Western Star.
• Suppliers such as New Zealand and the European Union, who are major players in the Indonesian dairy import market, may find renewed opportunities for growth.
• Fonterra has unveiled plans to invest $150 million in the construction of a new UHT cream plant at its Edendale site in Southland, New Zealand.
• Taupo-based dairy processor Miraka has made another groundbreaking move in its sustainability journey by launching New Zealand’s first green hydrogen dual-fuel milk collection tanker.
• New Zealand-based dairy processor Synlait Milk has completed a strategic review of its North Island assets, including its Pōkeno manufacturing facility and the blending and canning operations in Auckland.
• Imports of dairy products into China, primarily from New Zealand, declined by 13% year-on-year.
• Fonterra Oceania has introduced a variety of new dairy products catering to the growing demand for convenience and rich, bold flavors.
• Prices for Skimmed Milk Powder in Russia Continue to Rise: Traders Expect Further Increases.
• Fonterra recently participated in a New Zealand business delegation to Japan.
• Optimism returns for New Zealand dairy farmers as milk prices rise, but caution is advised amid interest rate volatility.
• Fonterra is investing a further NZD 150 million into its operations by building a new cool store at its Whareroa site in Taranaki, New Zealand.

Modified: 2024/10/08

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