Shutterstock

News Milk

Milk production in Oceania varies considerably

10 March 2025 - Santiago Morales Hilarión

Milk production in New Zealand increased in January. The country also reported strong growth in exports to important markets. The important Chinese sales market is also showing some bright spots. Meanwhile, milk production in Australia is actually decreasing. This is due to drought, among other things, which has consequences for the availability of roughage. 

Do you have a tip, suggestion or comment regarding this article? Let us know

New Zealand milk production reached 2,39 million tonnes in January, up 2,62% year-on-year. Notably, fat and protein (milk solids) production grew even more, up 4,99% year-on-year to 211.853 tonnes in January, indicating higher yields in dairy production. 

At the same time, New Zealand’s dairy exports increased by 8,6% year-on-year to 378.016 tonnes in January. This increase was mainly driven by higher exports of whole milk powder (WMP) and butter to China. In addition, the UK, Japan and South Korea increased their cheese imports from New Zealand. Growth was also driven by higher sales of milk protein concentrate (MPC) and milk protein isolate (MPI).

Australian dairy sector 
In fact, Australia’s milk production fell to 708,2 million litres in January, a 2,61% decrease compared to last year. This decline was expected as drier weather conditions have limited the availability of water and feed, putting pressure on dairy farmers’ margins. In addition, rising labour costs, which rose by as much as 2021% between 2024 and 50, remain a significant challenge to the competitiveness of the Australian dairy sector.

Despite these challenges, Australia maintains a strong position in the global dairy market. A recent Rabobank report highlighted that Australia is the second most cost-efficient dairy producer in the world, after New Zealand. Both countries benefit from the feeding system based on their own roughage. However, Australia has a significant disadvantage due to higher labour costs.

Australia’s dairy exports totaled 69.793 tonnes in December, up 13,69% year-on-year. The total export value of dairy was AUD 407,19 million (€239,06 million), up 34,63% year-on-year. Exports are mainly based on cheese and milk powder. 

Changing trends in Chinese dairy imports
China remains a key market for Oceania dairy exports, although the country has shown a downward trend in dairy imports in recent years. China’s dairy imports fell by 8,8% last year, reaching 2,82 million tonnes at the end of December. However, the downward trend appears to be reversing, as China’s dairy imports rose by 18,6% in December to a total of 283.397 tonnes. The increase may be due to lower Chinese milk prices, which are countering the oversupply of milk. In addition, the Oceania dairy sector may benefit from the US-China trade war. 

Call our customer service +0320(269)528

or mail to support@boerenbusiness.nl

do you want to follow us?

Receive our free Newsletter

Current market information in your inbox every day

Login/Register