New Zealand's Dairy Sector Attracts Global Giants, According to New Industry Report
Source: The DairyNews
Tim Morris, managing director of Coriolis, has emphasized New Zealand's prominence in the global dairy sector, as detailed in a comprehensive 180-page report produced by his consultancy. The report underscores the significant foreign direct investment flowing into the country's dairy industry, often without public fanfare.
As Fonterra, New Zealand's flagship dairy cooperative, considers reducing its international presence, several global players are increasing their investments in New Zealand, focusing predominantly on value-added dairy products. Contrary to some beliefs, Morris dismissed the notion that global consumers are moving away from dairy products or that New Zealand has surpassed its peak milk production. According to the report, dairy remains a staple in diets worldwide, with 85% of the global population consuming an average of 120 liters per person annually—a figure that is increasing by approximately one liter each year.
The report reveals that New Zealand's dairy processing landscape includes investments from a diverse array of entities, including five private equity firms, 14 multinationals, and several state-owned enterprises, as well as local cooperatives and hundreds of private companies. New Zealand is home to eight of the world’s ten largest milk driers and operates approximately 50 milk collection sites, supporting over 10,000 dairy farms.
Highlighting New Zealand’s strategic importance, Morris pointed out that the country is a critical player in cross-border dairy trade, supplying 14% of the world’s dairy imports. This includes significant market shares in China, Southeast Asia, the Middle East, and the United States. Among the major international dairy companies operating in New Zealand are Lactalis, Nestlé, Danone, Friesland, Yili, and Mengniu, as well as several other prominent multinational firms.
These companies are drawn to New Zealand not only for its market-leading position but also for opportunities in sustainability and growth, and to strengthen their global footprint. The Coriolis report also notes that despite the dominance of these large players, the vast majority of New Zealand’s dairy firms are small, often family-run businesses, with many focusing on nutraceuticals and innovative dairy-derived products.
Overall, the report paints a picture of a robust, diverse, and highly competitive dairy industry in New Zealand, which continues to attract significant international attention and investment.
The report reveals that New Zealand's dairy processing landscape includes investments from a diverse array of entities, including five private equity firms, 14 multinationals, and several state-owned enterprises, as well as local cooperatives and hundreds of private companies. New Zealand is home to eight of the world’s ten largest milk driers and operates approximately 50 milk collection sites, supporting over 10,000 dairy farms.
Highlighting New Zealand’s strategic importance, Morris pointed out that the country is a critical player in cross-border dairy trade, supplying 14% of the world’s dairy imports. This includes significant market shares in China, Southeast Asia, the Middle East, and the United States. Among the major international dairy companies operating in New Zealand are Lactalis, Nestlé, Danone, Friesland, Yili, and Mengniu, as well as several other prominent multinational firms.
These companies are drawn to New Zealand not only for its market-leading position but also for opportunities in sustainability and growth, and to strengthen their global footprint. The Coriolis report also notes that despite the dominance of these large players, the vast majority of New Zealand’s dairy firms are small, often family-run businesses, with many focusing on nutraceuticals and innovative dairy-derived products.
Overall, the report paints a picture of a robust, diverse, and highly competitive dairy industry in New Zealand, which continues to attract significant international attention and investment.
