New Zealand Whole Milk Powder Production Set for Slight Decline Amid Strategic Shift
New Zealand’s whole milk powder (WMP) production is projected to see a slight decrease in 2024, dropping to 1.375 million tons, according to a recent USDA Dairy World Markets and Trade report.
This marginal decline is a result of the dairy industry’s strategic focus on producing higher-value dairy products such as butter, cheese, and cream, which currently yield better returns. The move is part of a broader investment in enhancing processing capabilities to capture more value in an increasingly competitive global market.
Despite the dip in production, New Zealand's WMP exports are expected to rise, with forecasts pointing to 1.45 million tons in 2024, driven by strong international demand. Key markets in Southeast Asia and the UAE have contributed to a significant 32% increase in WMP exports in the first quarter of 2024 compared to the same period in 2023. The resurgence of global dairy trade prices, following their lows in mid-2023, has further supported this export growth.
Despite the dip in production, New Zealand's WMP exports are expected to rise, with forecasts pointing to 1.45 million tons in 2024, driven by strong international demand. Key markets in Southeast Asia and the UAE have contributed to a significant 32% increase in WMP exports in the first quarter of 2024 compared to the same period in 2023. The resurgence of global dairy trade prices, following their lows in mid-2023, has further supported this export growth.
Although WMP exports remain robust, New Zealand's dairy industry is focusing on diversifying into higher-value products, a shift that may temper long-term growth in WMP production. This strategic emphasis on specialty dairy products is aimed at ensuring sustainable growth, maintaining New Zealand’s strong presence in the WMP market, while exploring additional opportunities in premium dairy segments.
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