The dairy sector contributes billions of dollars to the country’s economy and is one of New Zealand’s most dominant goods export sectors. The nation operates mainly pasture-based farming, with large herds and large-scale processing facilities. Research and development and robust trade relationships have helped cement New Zealand’s place in the global dairy marketplace. New Zealanders themselves are big consumers of dairy milk and products, having one of the highest
New Zealand’s dairy economy
A wide variety of dairy products are produced in New Zealand, including fluid milk, milk powders, butter, cheese, and infant formula.
New Zealand has a large population of dairy cattle to produce the high volumes of milk required for these dairy products. Dairy farming provides thousands of New Zealanders and migrants with direct employment across the country, and the dairy workforce continues to grow each year. Additionally, indirect employment in the dairy sector, from construction to logistic operations, further supports the New Zealand economy.
New Zealand has a reputation for delivering high-quality dairy products across the world. It has created a name for itself as a
world leading dairy exporter. The nation is the largest exporter of whole milk powder (WMP), with around 95 percent of the milk produced in New Zealand processed to be exported. Other important export products include butter, cheese, infant formula, and skim milk powder. China, Australia, Indonesia, and the United States were some of the
country’s biggest trade partners for dairy products.
Who are the big dairy producers?
Farmer-owned cooperatives further process most of the milk produced in New Zealand. Fonterra is not only the primary milk production and processing company in New Zealand but also one of the biggest dairy companies in the world. The cooperative buys milk from its 10,500 farmer shareholders and processes it mainly for export. In the 2023 fiscal year,
Fonterra reported a net profit after tax of 336 million New Zealand dollars. Other major players in the local dairy industry include Open Country Dairy Limited, Synlait Milk Limited, and Westland Cooperative Dairy Company Limited.
Alternative milk market
While dairy milk sales have remained relatively stable, the alternative milk market has experienced substantial growth. Non-dairy alternatives include soy, oat, almond, rice, and coconut milks. The boom in sales of these products coincides with more Kiwis opting for a plant-based diet. With this segment growing locally and internationally, New Zealand’s core dairy products will face even more competition.
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