India & New Zealand: Two giants with opposite logics driving the global dairy compass

The global dairy market is not merely about commodities; it represents a geopolitical chessboard, where economic power and food security intersect. In this complex arena, India and New Zealand stand as polar opposites. India, a massive producer, consumes most of its 239 million tonnes of annual production internally, with limited exports due to high tariffs. New Zealand, conversely, is a major global exporter, heavily reliant on foreign markets and external conditions. India's dairy sector is characterized by cultural and massive consumption, integrating products like chai and paneer into daily diets, and experiencing fluctuations during festivals like Diwali and Holi. Though self-sufficient, India occasionally turns to imports to meet peak demand, maintaining high tariffs to protect local farmers.

Meanwhile, value-added segments such as yoghurts and functional products are rapidly growing. New Zealand, known for setting international dairy prices, exports more than 95% of its production, mainly to Asia and the Middle East. However, the country faces sustainability challenges and geopolitical risks. The country's decision to cancel the agricultural emissions tax has been controversial, impacting its 'clean & green' image. The future of these two dairy giants will be critical in an evolving market, influenced by Asian demand, sustainability, and trade policies. As both nations seek to expand their reach, the stage is set for a fascinating interplay of domestic consumption and international trade on the global dairy chessboard.