Background dairy business
Global Dairy Trade increases in dairy volume in 2022
2022 was a successful year for the GDT platform. Not only did turnover increase by 8%, the traded volume was also on the rise again and even the importance for the total New Zealand dairy export increased slightly again.
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This is evident from the GDT 2022 annual report and data from the New Zealand dairy industry and the US Department of Agriculture. The latter because detailed data on New Zealand dairy production and exports are not always available.
Last year, 647.296 tons of product were traded via the GDT platform, which is 3,3% more than the year before. Whole milk powder accounted for 53% of this volume, or 343.066 tons. The second major product, with a 25% share (162.000 tons) is skimmed milk powder. Some of this also comes from outside New Zealand. Butter concentrate (AMF) accounted for 10% of the traded volume (65.000 tons). Compared to a year earlier, less whole milk powder was traded in 2022 and slightly more skimmed milk powder and butter concentrate.
Limited share of NZ production
Because there is no data available on the volume of non-New Zealand product on the GDT platform, it is not possible to say exactly what share of the total New Zealand production the auction represents. However, the total volume of whole milk powder traded in 2022 represents 23% of New Zealand's production of this type of milk powder (343.000 tonnes out of a total of 1485.000 tonnes). In 2021, this amounted to 22,3% of the production of whole milk powder. The volume of traded skimmed milk powder is more than half of the production in New Zealand (162.000 tonnes out of a production of roughly 330.000 tonnes).
Although the traded volume of dairy increased again last year on the GDT platform, it is striking that the average traded volume is on a downward trend.