New Zealand is the second biggest dairy producing region accounting for 30% of all global exports. The NZ region was down around 4% this year which also had a very significant impact on global markets as they are the key supplier to Asia. As China is the biggest dairy importer in the world accounting for around one fifth of all imports any supply issues in NZ will reverberate around the world driving up prices. NZ had similar issues to deal with including labour shortages and environmental challenges but they also had very adverse weather conditions to deal with which compounded the pain.
The only one of the ‘big five’ dairy exporting regions in the world that saw a surplus in milk supply was Argentina which saw a 0.6% increase in milk volumes compared to last year. However Argentina only accounts for 4% of all global exports so the effect on the market won’t be as significant. It might be a while before another cow is milked in Argentina again after their recent World Cup win prompted wild street parties for the ages!