Insights into New Zealand’s dairy sector

According to the New Zealand Dairy Group, New Zealand represents 35% of the world market in dairy products.

Dominant global competitor

New Zealand’s dairy industry is world renowned for its high quality, flavourful products. Its long-standing history and expertise have allowed the industry to flourish. According to New Zealand Trade and Enterprise, New Zealand dairy exports were worth NZ$9.29 billion in 2008 – the largest export earner in New Zealand’s economy.

To maintain its position within the global market, New Zealand upholds stringent bio-security policies which protect our grass-fed herds. Dairy organisations are also dedicated to advanced research efforts which have led to developments in the use of proteins and bio-nutrients.

Fonterra

To expand the dairy industry, Fonterra Co-operative Group Ltd was formed in 2001.

Approximately 96% of New Zealand’s milk production is managed by Fonterra. Contributing to the success of New Zealand’s dairy industry, Fonterra has streamlined production processes and helped to maintain New Zealand’s position on a global scale.

Superior quality products

In addition to cow milk, significant dairy products exported from New Zealand include:

• High quality goat milk
• Specialty and bulk quantity cheese
• Premium ice cream.

Organic production is the fastest growing sector in the dairy industry. Projected to be worth more than NZ$130 million in the coming years, Fonterra expects to have 200 certified organic suppliers by 2013.

Approximately 85% of dairy farms are located in the North Island. Investors have a wealth of opportunities to get involved in the dairy sector as it continues to be a dominant exporter and revenue earner.

Key Resources

We suggest looking at the following resources:

• DairyNZ is an industry organisation representing New Zealand’s dairy farmers and providing up-to-date news from the dairy sector
• The Dairy Companies Association of New Zealand represents New Zealand dairy organisations and protects their interests concerning policy decisions
• The New Zealand Dairy Group provides information relevant to New Zealand’s dairy industry and products
• The Ministry of Agriculture and Forestry publishes up to date and relevant news, research and publications
• Federated Farmers are advocates for New Zealand’s farmers and they develop policies, lobby and provide advisory services.