Whey market in New Zealand

Earlier Report Observations

Between 2018 and 2020, the whey market in New Zealand gradually contracted from 46 352 t to 35 589 t. The COVID-19 pandemic in 2020 caused widespread supply chain disruptions, affecting whey protein availability and transport, which contributed to this gradual decline alongside broader global factors like rising dairy prices and extreme weather events reducing milk supply. This period was followed by a sharp market contraction in 2021, with volume falling to 18 084 t.

The market partially recovered to 25 069 t in 2022, influenced by significant regulatory shifts. The Food Safety Law Reform Act 2018 came into full effect, requiring dairy producers to update their risk management programmes to improve food safety, following past contamination incidents. Concurrently, the removal of Chinese tariffs on milk powder under the NZ-China Free Trade Agreement in January 2022 improved market access for New Zealand dairy products. By 2023, the market stabilized at 24 174 t as the industry adapted to ongoing supply constraints and high prices. This adaptation was supported by capacity investments, such as Westland Milk Products' $40 million expansion of its butter plant, indicating ongoing industry investment despite export challenges to key markets like China.

Looking ahead, the industry is navigating high price pressure and supply volatility. The whey protein market faced record-high prices and limited supply due to persistent global supply chain issues. In response, the sector saw the emergence of precision fermentation technology to produce animal-free dairy proteins, aiming to provide sustainable alternatives. Concurrently, new regulations, such as the extension of Country of Origin labelling rules to frozen foods and the progression of the Grocery Industry Competition Bill, continued to shape the packaging, labelling, and distribution landscape for dairy products.

Production whey in New Zealand

In kind, 2018-2021, K t

Between 2018 and 2021, New Zealand ranked as the 24th largest producer of whey globally.

Top producers of whey, 2018-2021

World map of production of whey, 2018-2021

In 2021, New Zealand produced 26 000 tonnes of whey, marking a 10.7% decrease compared to the previous year. Over the period from 2018 to 2021, production fell by 13.8%, which translates to an average annual decline of 4.8%. The only increase during this time occurred in 2020, with a modest rise of 0.3%.

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

In value, 2018-2021, K $ US

In 2021, the value of whey production in New Zealand reached 64 456 000 US dollars, reflecting a significant year-over-year increase of 15.6%. From 2018 to 2021, production value grew by 21.5%, averaging an annual growth rate of 6.7%. The largest drop was observed in 2020, with an 8.5% decline.

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

Exports whey from New Zealand

Exports in kind, t

Whey exports from New Zealand rose for the second year in a row. In 2021, export volumes reached 15 939 tonnes, up 7.7% from the previous year. Over the 2018-2021 period, exports increased by 3.3%, with a compound annual growth rate of 1.1%. The lowest volume was recorded in 2019 at 12 857 tonnes, which also saw the largest decline of 16.7%. The most significant increase occurred in 2020, with a 15.1% rise.

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

From 2018 to 2021, Malaysia, China, and Singapore were the key export partners for whey in volume terms, accounting for 28.9%, 17.1%, and 11.3% of exports, respectively. Together, these three countries represented 57.3% of New Zealand's total whey exports.

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, K $ US

Whey export values from New Zealand increased for the second consecutive year. In 2021, exports totaled 39 004 000 US dollars, a substantial 39.3% rise compared to 2020. Over the 2018-2021 period, export values grew by 45.7%, with a compound annual growth rate of 13.4%. The lowest value was in 2019 at 26 669 000 US dollars, which also experienced a slight decline of 0.4%.

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

Between 2018 and 2021, China, Malaysia, and Singapore were the top three markets for New Zealand's whey exports in value terms, collectively absorbing 63.1% of total export value.

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 whey to New Zealand

Imports in kind, t

Import volumes of whey into New Zealand showed notable volatility during these years. They peaked in 2018 and fell to their lowest point in 2021, with a 4.1-fold difference between these two years. In 2021, New Zealand imported a total of whey, which was 63.3% lower than the previous year. The largest increase was recorded in 2020, at 0.2%.

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

From 2018 to 2021, France, Germany, and Ireland were the leading sources of whey imports into New Zealand in volume terms, with shares of 33.4%, 18.9%, and 11.7%, respectively. Combined, these three countries accounted for 64.0% of total import flows.

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, K $ US

In 2021, New Zealand imported approximately 30 964 000 US dollars worth of whey, representing a 58.5% decrease year-over-year. Over the 2018-2021 period, imports declined by 59.5%, with an average annual decrease of 26.0%. The largest increase occurred in 2020, with a 14.2% rise.

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

Between 2018 and 2021, Germany, France, and Austria were the main suppliers of whey to New Zealand in value terms, contributing 23.1%, 20.1%, and 11.5% of imports, respectively. Together, they formed 54.6% 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