Cheese, Butter and Milk Powder Manufacturing in New Zealand - Industry Market Research Report

Milking it: Exports to China are boosting manufacturers' demand and revenue

Cheese, butter and milk powder manufacturers have performed strongly over most of the five years through 2022-23, largely because of increased demand from export markets. Manufacturers rely heavily on exports to generate revenue, which makes them vulnerable to price fluctuations in global markets. Despite some volatility, export prices have increased overall during the five years through 2022-23, supporting revenue growth. Revenue is expected to rise at an average annual rate of 3.0% over the five years through 2022-23, to total an estimated $26.6 billion. Global pandemic restrictions and supply chain disruptions have negatively impacted performance at points during the three years through 2022-23. Falling discretionary income will likely weaken domestic demand for dairy product manufacturers. Notwithstanding, rising export demand and prices are expected to lift revenue 1.8% in 2022-23. Industry operators primarily manufacture dairy products, such as cheese, yoghurt, butter, milk powder, canned cream and condensed milk. The industry excludes the production of fresh milk, fresh cream and ice cream. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.