New Zealand's importance on the dairy market
With a 3% share of global milk production, New Zealand is one of the smaller producers. In comparison, the EU has a share of 30%, India including cow's and buffalo milk between 25 and 30% and the USA 15%.
Nevertheless, New Zealand is one of the largest market players in the global dairy business. With around 2.3 million tons of exports of dairy products, New Zealand ranks first in the world. The EU-28 is in second place with 1.6 million tons and the USA is just ahead of Australia in third place in global trade in dairy products with 2/3 million tons.
New Zealand's dominant export market share means that its export earnings have become a benchmark for dairy product prices at global level, although its sales area is concentrated in Asia. China is an important import market for New Zealand dairy products.
FONTERRA, New Zealand's leading dairy company, conducts a fortnightly international internet auction, providing regular market and price information up to 6 months in advance. Global Dairy Trading (GDT) has now become a common term in the industry.
