Butter, dairy spreads and milk fats market in Australia and New Zealand

Earlier Report Observations

Between 2018 and 2021, the market for butter, dairy spreads, and milk fats in Australia and New Zealand contracted in both volume and value. Physical market volume fell from 772 thousand tons to 617 thousand tons, while the market's value declined from 4.4 billion US dollars to 3.3 billion US dollars. Production output also decreased during this period.

The market dynamics shifted in 2022, with a notable recovery in value to 4.1 billion US dollars and a slight volume increase. This turnaround was supported by significant production capacity expansion, exemplified by Yili Group's major butter production facility opening in New Zealand. Concurrently, sustained consumer preference for natural and healthy dairy fats continued to underpin demand.

In 2023, the market volume moderated to 605 thousand tons, with a corresponding value of 3.6 billion US dollars, indicating a stabilization following the previous year's growth.

Production butter, dairy spreads and milk fats in Australia and New Zealand

In kind, 2018-2021, K t

Top producers of butter, dairy spreads and milk fats, 2018-2021

World map of production of butter, dairy spreads and milk fats, 2018-2021

Butter, dairy spreads, and milk fats production in Australia and New Zealand has declined for the third consecutive year. In 2021, production reached 1 030 K t, marking a moderate drop of 9.2% compared to the previous year. Between 2018 and 2021, production decreased by 14.6%, which equates to an annualized rate of 5.1%.

Annual dynamics of production in Australia and New Zealand in kind, 2018-2021, K t

In value, 2018-2021, M $ US

After a two-year decline, butter, dairy spreads, and milk fats production in Australia and New Zealand increased in value. In 2021, output was valued at 5 280 M $ US, showing a moderate increase of 4.2% from the previous year. Over the period from 2018 to 2021, production value decreased by 23.4%, with a compound annual growth rate (CAGR) of 8.5%. The lowest value was recorded in 2020 at 5 068 M $ US, while the largest decline occurred in 2019 at 15.7%.

Annual dynamics of production in Australia and New Zealand in value, 2018-2021, M $ US

Exports butter, dairy spreads and milk fats from Australia and New Zealand

Exports in kind, K t

Butter, dairy spreads, and milk fats exports from Australia and New Zealand declined for the second consecutive year. In 2021, exports totaled 423.9 K t, representing a slight decline of 2.7% year-over-year. Over the period from 2018 to 2021, exports decreased by 10.4%, with a CAGR of 3.6%. The highest export volume was recorded in 2019 at 479.7 K t, with the largest decline in 2020 at 9.2% and the largest increase in 2019 at 1.4%.

Annual dynamics of product's exports from Australia and New Zealand in kind, 2018-2021, K t

From 2018 to 2021, butter, dairy spreads, and milk fats from Australia and New Zealand were traded with numerous countries. Even the largest destinations—China, the Philippines, and Saudi Arabia—together accounted for only 32.3% of total exports in kind.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Australia and New Zealand in kind, 2018-2021

Exports in value, M $ US

After a two-year decrease, butter, dairy spreads, and milk fats export value from Australia and New Zealand rose. In 2021, export value reached 2 174 M $ US, showing a significant increase of 11.7% year-over-year. Over the period from 2018 to 2021, exports decreased by 19.6%, with a CAGR of 7.0%. The lowest value was recorded in 2020 at 1 946 M $ US, and the largest decline occurred in 2020 at 18.5%.

Annual dynamics of product's exports from Australia and New Zealand in value, 2018-2021, M $ US

During 2018–2021, butter, dairy spreads, and milk fats from Australia and New Zealand were supplied to many different markets. Even the largest destinations—China, the Philippines, and Saudi Arabia—together represented only 32.3% of total exports in value terms.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Australia and New Zealand in value, 2018-2021

Imports butter, dairy spreads and milk fats to Australia and New Zealand

Imports in kind, K t

The data reveals irregular changes, indicating a volatile market environment. Import levels fluctuated significantly, with a 7.1-fold difference between the high in 2018 and the low in 2019. In 2021, foreign butter, dairy spreads, and milk fats supplies to Australia and New Zealand reached 11.4 K t, which is 14.6% lower than the previous year. The minimum value was recorded in 2019 at 5.5 K t, with the largest decline in 2019 at 85.9% and the largest increase in 2020 at 142.8%.

Annual dynamics of product's imports to Australia and New Zealand in kind, 2018-2021, K t

Data from 2018 to 2021 indicate that imports in kind of butter, dairy spreads, and milk fats to Australia and New Zealand were not concentrated on a few key destinations. Ireland (3.4% of imports in kind), India (2.9% of imports in kind), and France (2.5% of imports in kind) jointly accounted for only 8.8% of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Australia and New Zealand in kind, 2018-2021

Imports in value, M $ US

In 2021, butter, dairy spreads, and milk fats deliveries to Australia and New Zealand amounted to 183 M $ US, equivalent to a limited decline of 8.4% from 2020. Between 2018 and 2021, imports decreased by 19.9%, equating to an annualized rate of 7.1%. The largest decline was recorded in 2019 at 13.8%, while the largest increase occurred in 2020 at 1.4%.

Annual dynamics of product's imports to Australia and New Zealand in value, 2018-2021, M $ US

From 2018 to 2021, butter, dairy spreads, and milk fats to Australia and New Zealand were traded with many countries. Even the largest destinations—India, Denmark, and Ireland—together represented only 10.2% of total imports in value terms.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Australia and New Zealand in value, 2018-2021