Milk market in Oceania

Earlier Report Observations

From 2018 to 2020, milk production in Oceania remained relatively stable, hovering around 31,000 tons. In 2018, New Zealand's dairy sector, as the country's largest goods export industry, supported output through significant farmer spending on agri-chemicals and forage crops. By 2020, repeated droughts and high feed costs in Australia drove production there to a 25-year low, impacting the regional volume, although New Zealand's output held firm.

Between 2021 and 2023, physical milk production declined from approximately 31,000 tons to under 30,000 tons. This reduction was primarily driven by a continued fall in New Zealand's dairy herd numbers, which decreased by 3.46% by the 2022/23 season, coupled with adverse weather conditions and rising input costs for farmers. Concurrently, changes in environmental policy and regulation, including reforms to the Dairy Industry Restructuring Act (DIRA) and the introduction of new raw milk sales requirements in July 2022, altered the operational landscape for producers.

Despite the drop in volume, the market's value in monetary terms rose from $72.8 billion in 2018 to a peak of $91.2 billion in 2022, before moderating to $81.4 billion in 2023. This increase in value was fueled by stronger milk prices, including record cooperative payouts like $9.26 per kg of milksolids in the 2022/23 season, and sustained global demand from key markets such as China. Production stabilized in 2023 at 29,734 tons, supported by improved per-cow productivity and ongoing regulatory reforms aimed at reducing compliance complexity.

Production milk in Oceania

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

In 2019, Oceania's milk production experienced its largest decline of 1.9%. However, in 2020, production rebounded slightly, reaching 30 992 K t, which represents a modest increase of 1.1% compared to 2019. The peak production was recorded in 2018 at 31 257 K t, marking the largest increase of 2.5% during this period.

Annual dynamics of production in Oceania in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Oceania's milk production has grown for the second consecutive year. In 2020, the output was valued at 83 011 M $ US, showing a moderate increase of 4.5% from the previous year. Over the period from 2017 to 2020, production rose by 5%, with a compound annual growth rate of 1.6%. The lowest value was recorded in 2018 at 78 852 M $ US, which saw the largest decline of 0.2%.

Annual dynamics of production in Oceania in value, 2017-2020, M $ US

Exports milk from Oceania

Exports in kind, K t

After a two-year upward trend, cross-border shipments of milk from Oceania declined. In 2020, export volume was recorded at 2 735 K t, remaining broadly stable compared to 2019. Between 2017 and 2020, exports increased by 8.7%, equating to an annualized rate of 2.8%. The highest export volume was recorded in 2019 at 2 747 K t, which also saw the largest increase of 8.3%.

Annual dynamics of product's exports from Oceania in kind, 2017-2020, K t

From 2017 to 2020, China, Malaysia, and Singapore were the main destinations for milk exports from Oceania in terms of volume. China accounted for 41.8% of exports, Malaysia for 4.9%, and Singapore for 4.6%, together representing 51.3% of total exports in kind.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Oceania in kind, 2017-2020

Exports in value, M $ US

Exported milk volumes from Oceania have increased for the second consecutive year. In 2020, Oceania exported 7 326 M $ US of milk, indicating a slight rise of 2.9% year-over-year. Between 2017 and 2020, exports grew by 12.4%, with an annualized rate of 4.0%. The lowest value was recorded in 2018 at 6 400 M $ US, which experienced the largest decline of 1.8%. In contrast, 2019 saw the largest increase of 11.2%.

Annual dynamics of product's exports from Oceania in value, 2017-2020, M $ US

From 2017 to 2020, China, Malaysia, and the United Arab Emirates were the principal destinations for milk exports from Oceania in value terms. China accounted for 41.2% of exports, Malaysia for 4.7%, and the United Arab Emirates for 4.4%, jointly making up 50.3% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Oceania in value, 2017-2020

Imports milk to Oceania

Imports in kind, K t

In 2020, milk shipments to Oceania from abroad reached 82 K t, indicating a steep increase of 41.5% compared to 2019. Over the period from 2017 to 2020, imports grew by 37.6%, with a compound annual growth rate of 11.2%. The lowest import volume was recorded in 2019 at 58 K t, which also saw the largest decline of 12.2%.

Annual dynamics of product's imports to Oceania in kind, 2017-2020, K t

From 2017 to 2020, the partner portfolio for milk imports to Oceania in terms of volume was quite broad. France accounted for 5.8% of imports, the Netherlands for 4.4%, and Germany for 3.4%, together representing only 13.6% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Oceania in kind, 2017-2020

Imports in value, M $ US

Foreign milk supplies to Oceania have increased for the third consecutive year. In 2020, imports amounted to 407 M $ US, showing a limited rise of 9.6% compared to the previous year. Over the period from 2017 to 2020, imports grew by 47%, with a compound annual growth rate of 13.7%.

Annual dynamics of product's imports to Oceania in value, 2017-2020, M $ US

From 2017 to 2020, the partner portfolio for milk imports to Oceania in value terms was quite broad. Austria accounted for 7.3% of imports, the Netherlands for 6.4%, and Germany for 3.6%, together representing only 17.2% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Oceania in value, 2017-2020