Dairy Cattle Farming in New Zealand - Industry Market Research Report

Grain or shine: Industry revenue has increased, despite curdling dairy cattle numbers

Dairy Cattle Farming in New Zealand

Operators in the Dairy Cattle Farming industry have experienced largely favourable trading conditions over the past five years. Improving global supply and demand conditions allowed for a strong recovery in the milk prices that dairy processors offer to farmers. Dairy cattle numbers have declined over the period as industry operators have had to contend with drought conditions. However, efficiency improvements have allowed for greater milk yields per cow. As a result, milk production has increased over the past five years. Supply constraints in New Zealand and worldwide due to the COVID-19 pandemic have boosted dairy product prices and therefore farmgate milk prices. Overall, industry revenue is expected to rise at an annualised 3.8% over the five years through 2022-23, to $18.5 billion. However, output is anticipated to be constrained in the current year due to falling dairy cattle numbers. Revenue is expected to grow 0.9% in 2022-23.

Industry operators primarily farm dairy cattle. The industry excludes operators that primarily undertake cattle agistment services.

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.