Slight decline expected for New Zealand whole milk powder production

In 2024, New Zealand's production of whole milk powder (WMP) is projected to decline slightly to 1.375 million tons, according to a recent USDA Dairy World Markets and Trade report. This decrease is attributed to a strategic shift by dairy processors towards the production of fresh dairy products such as butter, cheese, and cream, which currently offer higher returns. The New Zealand dairy industry continues to invest in enhancing processing capacity for higher-value products to maximise returns in a competitive global market. Despite the production decline, New Zealand's WMP exports are forecast to increase to 1.45 million tons in 2024, driven by strong global demand, particularly from Southeast Asia and the UAE. The first quarter of 2024 saw a significant, 32% rise in WMP exports compared to the same period in the previous year. This growth is supported by rebounding global dairy trade prices from their lows in mid-2023. While WMP exports are expected to grow, the ongoing ...