New Zealand forecasts a drop in dairy revenue from declining butter, cheese, and milk powder shipments

For the world largest dairy exporter, dairy export revenue is expected to fall from NZ$20bn (US$14.5bn) in 2019/20, to NZ$19bn (US$13.7) for the year ending June 2021. It is expected to pick up and hit NZ$20bn in 2021/22, according to an outlook report published by the Ministry for Primary Industries in December 2020. New Zealand’s Minister of Agriculture Damien O’Connor said the country expects weaker demand for some of its goods, as well as pressure on prices. Whole milk powder, butter, cream, and cheese make up the main dairy commodities in New Zealand. Exports of whole milk powder are forecasted to decrease from NZ$7.5 to 7 billion (US$5.4 to 5bn) in 2020/21, butter and cream from NZ$3.3 to 2.7 billion (US$2.3 to 1.9bn), skim milk from NZ$1.8 to 1.7 billion (US$1.3 to 1.2bn), and cheese from NZ$2 to NZ$1.9 billion (US$1.4 to 1.3bn). However, casein and protein products, infant formula, liquid milk and cream, ultra-high temperature milk, yoghurt, and ice cream exports revenues ...