New Zealand’s dairy exports rose year-on-year (y-o-y) in March 2025 for four consecutive months. Most dairy categories experienced growth, but Whole Milk Powder (WMP) and butteroil had declines, mainly driven by lower demand from China.
Cheese export volumes were the main growth contributor, with rises recorded almost every month since the beginning of the milk collection season, June 2024. Chinese buyers had the biggest appetite for New Zealand Cheese. During Q1 2025, China imported 34,600 (000) metric tons, up 39.5% y-o-y, equating to almost 10,000 metric tons more than last year. Dairy trade between New Zealand and the UK has intensified on the back of the Free Trade Agreement (FTA). The tariff-free quota stands at 24,000 metric tonnes for 2025, and 5,100 metric tons were used during the first two months of the year. These figures indicate that effectively the FTA has boosted dairy trade between the two countries
Regarding milk powders, Skimmed Milk Powder (SMP) exports surged to record levels in March 2025, bringing +1,9% y-o-y at 145,000 metric tons in Q1 2025. Similar to other dairy categories, China buyers led purchases, meanwhile exports to the Middle East were lower-than-expected for SMP and Whole Milk Powder (WMP). Ramadan, which started on February 28 2025, had a direct impact on the lower buying interest during March.
Exports of dairy fats was mixed. Butter volumes trended up in March for seven consecutive month, pushing up exports 10.9% y-o-y. However, exports of butteroil lagged last year volumes with a 4.3% drop in March. This drop is attributed to Chinese imports decline due to solid demand for Sweet Whey Powder (SWP) and butter.
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Image source: Adobe
Written by Jose Saiz
