New Zealand is the largest dairy producer in the southern hemisphere and the world's leading butter exporter, with milk production expanding despite environmental regulations and a reliance on imported feed. The country's dairy sector requires about 4.5 million tons of feed per year, with 60% coming from imports. Palm oil extract makes up half of these imports, despite concerns about its environmental impact. Fonterra, New Zealand's largest dairy company, is taking steps to reduce the use of palm oil extract in production.