New Zealand: Dairy and Products Semi-annual

New Zealand fluid milk production is estimated at 21.7 million metric tons (MMT) for the 2025 market year (MY). This is slightly above the previous 5-year average of 21.6 MMT and a slight increase compared to MY 2024. This production level reflects both long-term structural adjustments such as herd consolidation and no major dairy expansion, as well as other factors such as improved productivity per cow and improved management practices. Short term factors influencing production include high farm gate milk prices and lower interest rates. Constrained by New Zealand’s small population, dairy processors remain heavily export-oriented, targeting global markets for growth. Whole milk powder (WMP) continues to be the leading export category by volume. However, a notable production shift is underway particularly towards cheese, milk fats, skim milk powder (SMP) and other specialty products.