Dairy market report Q2 2021 – New Zealand
Read our market report on dairy trade in New Zealand. Take a look at the favorable milk production numbers for the upcoming season and increased exports of milk and cheese. Discover the booming demand for dairy products from China and increased orders by as much as 80%. Find out which products were ordered less willingly than in the last year.
In New Zealand, over half of the milk is produced from August to December meaning only preliminary estimates can be done at present time. Nevertheless, weather conditions seem to be favorable in terms of pasture growth and rainfall projections suggest a positive output for the upcoming season. The 2021 milk production is estimated to be 22.4 million tonnes – up by 1% from the previous year. In the first half of 2021, New Zealand’s milk output amounted to over 8.9 million tonnes – a growth of 5,6% compared to the same period in 2020.
Bulk/packaged milk and butter
In the period between January to June 2021, New Zealand has exported 133,00 metric tonnes of bulk and packaged milk – an increase of almost 22% from the same time last year. The key buyer was China with 101,090 metric tonnes of purchases representing a growth of over 38% compared to January-June 2020. Other major orders came from Taiwan with 7,297 metric tonnes, and the Philippines with 6,751 metric tonnes.
Butter exports from New Zealand amounted to 224,000 metric tonnes decreasing by 2.8% from last year. The product mainly reached China with 59,344 metric tonnes delivered – an over 39% growth compared to the first six months of 2020. Other buyers of NZ butter were the Philippines with orders for 15,124 metric tonnes and Australia with 14,630 metric tonnes, the latter decreasing the purchases by almost 19% from last year.
Situation of milk powders in New Zealand
In the first six months of 2021, New Zealand shipped 172,000 metric tonnes of SMP, down by 13.3% from the same period last year. The largest order came from China for 66,801 metric tonnes – a growth of over 28% from last year. Indonesia purchased 17,367 metric tonnes decreasing the orders by around 11% compared to the same period last year, while Thailand purchased 13,739 metric tonnes – down by 6.64%.
In the first half of 2021, FCMP exports from New Zealand amounted to 883,000 metric tonnes representing a 15% increase compared to the same period last year. The product mainly reached China at the quantity of 413,117 metric tonnes – a growth of 61.58% from last year. The United Arab Emirates purchased 48,952 metric tonnes while Sri Lanka increased the orders by almost 12% to 47,289 metric tonnes compared to the same period in 2020.
Between January and June 2021, New Zealand has exported 34,000 metric tonnes of casein of which over 9,900 metric tonnes were delivered to the United States. Orders from China for NZ casein have increased by over 81% in the first six months of 2021 compared to the same period last year, while casein shipments to Mexico grew by 11.21%.
New Zealand’s dairy trade flows
From January to June 2021, New Zealand cheese exports grew by almost 20% compared to the same period last year and amounted to a total of 198,000 metric tonnes. The key cheese buyer was China with orders for 52,788 metric tonnes which increased by over 70% from last year. Japan decreased cheese purchases by 9.67% in that time and ordered 30,154 metric tonnes of the product while shipments to Australia amounted to 22,231 metric tonnes.
In June 2021, New Zealand was the top dairy supplier to China with 119,477 tonnes of goods delivered. Between January and June, New Zealand delivered a total of 965,186 tonnes of dairy products to China – up by 27,7% compared to the same period last year and therefore supplied the most dairy goods among other countries.