New Zealand: Dairy and Products Annual

New Zealand fluid milk production in 2024 is forecast to decline by 0.5 percent to 21.4 million metric tons (MMT). This situation results from recent decreases in farm gate milk price forecasts, as well as rising interest rates, which are expected to restrict operational cashflow in the outgoing year. Added to this is the climate challenges ahead with a forecasted El Niño weather pattern, predicted to impact key dairy farming regions with dry conditions. On October 14, 2023, New Zealand held a general election for the national government. The vote favored an overwhelming change from the current government. The political parties forming the new government have historically focused on supporting agriculture and trade when leading previous governments. FAS/Wellington is forecasting in 2024, growth in New Zealand Cheese, Skim Milk Powder (SMP), and Cream product exports. Although Whole Milk Powder (WMP) will continue to be the primary dairy export to overseas markets.