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New Zealand milk and cream exports are booming

The January/September period saw a boom in New Zealand milk and cream exports. However, most of the industry registered extremely positive figures bar very few exceptions. In September this year, compared to the same month the previous year, New Zealand exports of the following products increased in volume: packaged and unpackaged milk (+56.5%), milk cream (+74%), infant formula (+92%), whey powder (+77%), skimmed milk powder (+50%), whole milk powder (+10,5%) and cheese (+3%). The only products to decrease in volume were butter (-5%) and caseins (-37%). This significant increase in volume boosts export volume figures for the January/September period, which are all very positive – with triple-digit peaks for infant formula (+108%) and condensed milk (+150.5%) – except for whole milk powder (-4%) and caseins (-10%). Caseinates are almost stable (-0.3%). The situation for exports in terms of value differs as negative results predominate with the exception of infant formula (+86%), milk and cream (+36%) and condensed milk (+23.5%). Naturally, these figures are positive only because consistent increases were registered in terms of volume compared to the previous year.
Let’s return to milk and cream. So what are the main export markets of unpackaged and packaged milk and New Zealand cream? The top export market for both milk and cream is China (with a market share of 53% and 59% respectively). Exports of milk to the Asian giant have increased by 86% (64,589 tonnes). Second place goes to the Philippines, with an increase of 5% (23,259 tonnes). Taiwan holds third place and has registered an increase of 55% compared to the same period in 2015. Figi and Singapore follow with 4,256 and 3,315 tonnes respectively.
Export markets for cream are also mostly Asian (bar Australia which is the third biggest market with a market share of 4%, 1,984 tonnes of product and an 11% increase). At a considerable distance behind China, which absorbs a good 27,636 tonnes and is growing at a rate of 82%, is Malaysia with 2,392 tonnes, a market share of 5% and a 34% increase.