New Zealand butter production expected to grow in 2024

 In New Zealand butter production is expected to continue growing again in 2024, up 3% to 525,000 tons, according to a recent US Department of Agriculture (USDA) Global Foreign Agricultural Service (FAS) dairy market report.

Volumes are expected to shift towards production of high milk fat products as demand for whole milk powder remains depressed in major markets including China, Indonesia, Bangladesh, and Singapore. However, processing capacity remains slow to respond to changes in market prices despite strengthening butter prices. Therefore, much of the ramp up in butter manufacturing is expected in the second half of the year. 

Exports are forecast to decline in 2024 relative to a strong export year in 2023 as exportable supplies remain relatively tight.