The Netherlands, like the United States, has also imported large quantities of butter from New Zealand in recent months. Along with the significantly higher milk supply, this can be seen as a major reason why the dairy market has collapsed in recent months.
The Netherlands imported more than 3.000 tons of butter and AMF from New Zealand in May, according to trade data (Harmonised System). Monthly imports were never this high. This represents 30% of Dutch butter production that month. Import figures were also high in June, at just under 2.000 tons, while over 1.500 tons were imported in July. Volumes are therefore considerably higher compared to previous years. Other European member states also imported more butter from New Zealand, but the Netherlands plays a leading role: over 65% of European imports pass through the Netherlands.
The high imports are likely the work of Dutch trading houses seeking to capitalize on the relatively favorable butter prices in New Zealand at the time. The European butter market was characterized by severe shortages in the first half of this year, which also made non-European products easy to buy. For the same reason, large quantities of butter were also imported from the USA.
Market down
As is known, the sentiment on the European butter market has been positive since August tilted, just like on the cheese market. This has several reasons, but cannot be seen entirely in isolation from the high butter imports from New Zealand and the US. In addition, the much higher-than-expected milk production naturally plays a role. in Europe a role, which has led to significantly more butter production in the member states. The market turnaround explains why Dutch butter imports from New Zealand fell back to 360 tons in August.
Fonterra scales up production
Strong demand for butter is driving investment in additional production capacity in New Zealand. Fonterra announced this week that it will invest 75 million New Zealand dollars (approximately €37 million) in expanding its South Canterbury plant. The new line will increase production capacity to 50.000 tons per year. The plan is to produce various packaging formats. Expansion will begin this year, with the line expected to be operational in April 2027.