As well as milk, various other dairy products are produced in vast quantities in the country such as milk powders, butter, cream, cheese, and infant formula. In fact, New Zealand is one of the major cheese-producing countries globally. While most of the dairy products produced in the country are exported, there is also a high domestic consumption of milk. At around 500 thousand metric tons in 2019, New Zealanders were among the largest consumers of fresh white milk in the world when considering the population size. The leading export markets for New Zealand dairy include China, Australia, the United States, the United Arab Emirates, and Japan. Fonterra, a New Zealand-based multinational dairy co-operative, was responsible for almost a third of the world’s market share of dairy exports alone.
Fonterra Co-operative Group
Fonterra is one of New Zealand’s biggest companies; in fiscal year 2019, Fonterra’s sales revenue exceeded 20 billion New Zealand dollars. However, despite a significant revenue, the group announced a 605 million New Zealand dollar loss in the same year. The company has struggled to turn a profit from their first recorded loss in 2018. Legal action, investment write downs, and increases in costs all contributed to the loss according to the company. With the company being an integral part of New Zealand’s economy, further losses may have a larger flow on effect to other segments in the industry.