Butter, dairy spreads and milk fats market in New Zealand

Earlier Report Observations

From 2018 to 2021, production of butter, dairy spreads and other milk fats in New Zealand declined from 1 004 thousand tonnes to 845 thousand tonnes, while the domestic market volume fell from 546 thousand tonnes to 445 thousand tonnes. This decrease coincided with tightened labeling requirements for the fat composition of spreads, which affected product formulation and consumer presentation.

In 2022, production rebounded to 918 thousand tonnes and market volume rose to 468 thousand tonnes. This recovery was supported by reforms to the Dairy Industry Restructuring Act (DIRA), which increased market contestability, as well as the revocation of the outdated Animal Products (Dairy) Regulations 2005. Simultaneously, retailers faced higher input costs for fuel, freight, and packaging, leading to inflationary pressure on dairy product prices.

By 2023, production stabilized at 925 thousand tonnes, while market volume slightly decreased to 454 thousand tonnes. In subsequent years, export shipments remained substantial, reaching 483 thousand tonnes in 2025, indicating sustained external demand for New Zealand milk fats.

Production butter, dairy spreads and milk fats in New Zealand

In kind, 2018-2021, K t

Globally, New Zealand ranked as the fourth-largest producer of butter, dairy spreads, and milk fats from 2018 to 2021.

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 New Zealand fell for the third year in a row. In 2021, output reached 845.4 K t, down 12.6% from the previous year. Over the 2018-2021 period, production dropped by 15.8%, averaging an annual decline of 5.6%.

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

In value, 2018-2021, M $ US

New Zealand's butter, dairy spreads, and milk fats production volume decreased for the third consecutive year. In 2021, the value of this output was 4 300 M $ US, remaining nearly unchanged from 2020. From 2018 to 2021, production value fell by 24.8%, with a compound annual growth rate of -9.1%.

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

Exports butter, dairy spreads and milk fats from New Zealand

Exports in kind, K t

New Zealand's exports of butter, dairy spreads, and milk fats declined for the second straight year. In 2021, shipments totaled 401.4 K t, a 4.7% drop from 2020. Over 2018-2021, exports decreased by 12.5%, with an annualized rate of -4.3%. The peak was in 2019 at 464.4 K t, followed by the largest decline of 9.3% in 2020 and a modest increase of 1.3% in 2019.

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

From 2018 to 2021, New Zealand's butter, dairy spreads, and milk fats exports were spread across many countries. China accounted for 21.5% of exports, Australia for 7.7%, and the Philippines for 6.2%, together making up just 35.5% of total shipments.

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

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

Exports in value, M $ US

After two years of decline, New Zealand's butter, dairy spreads, and milk fats export value rose in 2021 to 2 042 M $ US, an 8.9% increase from 2020. However, over the 2018-2021 period, export value fell by 21.8%, with a compound annual growth rate of -7.9%. The lowest point was in 2020 at 1 874 M $ US, which saw the largest decline of 18.6%.

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

From 2018 to 2021, New Zealand's butter, dairy spreads, and milk fats export value was widely distributed. China represented 21.3% of exports, Australia 7.4%, and the Philippines 6.6%, totaling only 35.3%, while the remaining 64.7% went to other partners.

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

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

Imports butter, dairy spreads and milk fats to New Zealand

Imports in kind, K t

In 2021, New Zealand's imports of butter, dairy spreads, and milk fats stood at 0.8 K t, up 11.3% year-over-year. Over 2018-2021, imports grew by 13.9%, averaging 4.4% annually. The highest volume was in 2019 at 1.0 K t, with the largest decline of 24.6% in 2020 and the largest increase of 35.6% in 2019.

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

From 2018 to 2021, India, Australia, and Denmark were the top suppliers of butter, dairy spreads, and milk fats to New Zealand. India accounted for 26.4% of imports, Australia for 16.3%, and Denmark for 9.5%, together comprising 52.1% of total import volume.

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

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

Imports in value, M $ US

In 2021, New Zealand's imports of butter, dairy spreads, and milk fats were valued at 5 M $ US, a 6.7% rise from the previous year. The lowest value was in 2020 at 5 M $ US, while the peak was in 2019 at 6 M $ US. The largest decline of 18.7% occurred in 2020, and the largest increase of 16.4% was in 2019.

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

From 2018 to 2021, India, Australia, and Denmark were the leading sources of butter, dairy spreads, and milk fats imports by value for New Zealand. India made up 27.4% of imports, Australia 18.9%, and Denmark 12.0%, together accounting for 58.3% of total import value.

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

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