July 26, 2005

New Zealand captures 30 percent of global dairy exports

New Zealand has grabbed 30 percent of the global dairy export market in the past few years, according to a report released Jul 25 by Rabobank, Europe's largest Internet bank and one of the world's largest banks.

Rabobank dairy analyst Hayley Moynihan said that domestic dairy product demand rose together with strong global economic performance, with countries like China, India and Russia as the most significant contributors to this growth.

In fact, with dairy taking up about 20 percent of New Zealand's total exports--and 39 percent of agricultural exports--the country's dairy exports had benefited from an increase of Chinese dairy consumption as China became a major stimulant for global growth last year.

Together with traditional export markets like the EU and the US, China and the Philippines are now dominant export markets for New Zealand dairy by volume.

Moynihan also said that more good news is awaiting New Zealand at the WTO Doha Round, as any slight reduction in agricultural product protectionist acts could benefit New Zealand producers considerably.