New Zealand: Dairy and Products Semi-annual

New Zealand fluid milk production is forecasted to be 21.2 million metric tons (MMT) in the 2024 market year (MY). This is a decrease on the previous 5-year average of ~21.6 MMT, reflecting the decreasing herd numbers and the short-term effects of the following: El Niño weather pattern, softening revenue, high cost of debt servicing, and challenging feed and fertilizer prices. Notably, New Zealand milk processing companies have strategically redirected their investments in recent years. They have shifted their processing capabilities from drying milk powder to more fresh products such as butter, cheeses, and creams. FAS/Wellington forecasts export growth in New Zealand Butter/AMF, Skim Milk Powder (SMP), and Cream products in 2024. Whole Milk Powder (WMP) will continue to be the primary dairy export to overseas markets. In the first quarter of 2024, global export volumes of dairy products from New Zealand were up 19 percent at the same time last year.