May 14, 2012

China's increasing dairy demand surges New Zealand's cattle population

New Zealand's dairy cattle population surged to more than six million due to the booming demand for dairy products from China and other emerging markets, the government statistics agency announced Friday (May 11).

Since 2010, the country's dairy cattle numbers had risen by 4.4%, or 259,000, to 6.17 million at the end of June last year, according to Statistics New Zealand.

About half of the increase was in the South Island, traditionally predominantly sheep territory, but the number of sheep across New Zealand had dropped from 32.6 million in 2010 to 31.1 million last year, according to the agency's Agricultural Production Statistics.

Continued high primary produce prices influenced how farmers managed their stock, agricultural statistics manager Hamish Hill said in a statement.

Higher payouts for milk solids were behind the continuing increase in dairy cattle numbers, while higher beef and venison prices meant farmers sent more stock for slaughter, leading to fewer beef cattle and deer in the 12 months to the end of June 2011.

Dairy product exports rose by NZD1.7 billion (US$1.33 billion), or 15%, to NZD12.9 billion (US$10.08 billion) last year, with China, Algeria and the US leading the increase, according to Statistics New Zealand.