New Zealand: Butter Market 2024

Butter Market Size in New Zealand

In 2022, after two years of growth, there was significant decline in the New Zealand butter market, when its value decreased by -66.8% to $X. Overall, consumption, however, continues to indicate notable growth. Over the period under review, the market attained the maximum level at $X in 2018; however, from 2019 to 2022, consumption stood at a somewhat lower figure.

Butter Production in New Zealand

In value terms, butter production shrank modestly to $X in 2022 estimated in export price. Over the period under review, the total production indicated a prominent expansion from 2012 to 2022: its value increased at an average annual rate of +6.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +3.1% against 2020 indices. The pace of growth was the most pronounced in 2014 with an increase of 50%. Butter production peaked at $X in 2018; however, from 2019 to 2022, production remained at a lower figure.

Butter Exports

Exports from New Zealand

In 2022, butter exports from New Zealand skyrocketed to X tons, growing by 72% compared with 2021. In general, total exports indicated a noticeable expansion from 2012 to 2022: its volume increased at an average annual rate of +3.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +73.6% against 2020 indices. As a result, the exports reached the peak and are likely to continue growth in the immediate term.

In value terms, butter exports surged to $X in 2022. Over the period under review, exports saw prominent growth. As a result, the exports reached the peak and are likely to continue growth in the immediate term.

Exports by Country

China (X tons) was the main destination for butter exports from New Zealand, with a 31% share of total exports. Moreover, butter exports to China exceeded the volume sent to the second major destination, Australia (X tons), threefold. The third position in this ranking was held by Saudi Arabia (X tons), with a 6.4% share.

From 2012 to 2022, the average annual growth rate of volume to China stood at +18.6%. Exports to the other major destinations recorded the following average annual rates of exports growth: Australia (+10.2% per year) and Saudi Arabia (+10.8% per year).

In value terms, China ($X) remains the key foreign market for butter exports from New Zealand, comprising 32% of total exports. The second position in the ranking was held by Australia ($X), with an 11% share of total exports. It was followed by Saudi Arabia, with a 6.2% share.

From 2012 to 2022, the average annual growth rate of value to China amounted to +24.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: Australia (+15.7% per year) and Saudi Arabia (+17.4% per year).

Export Prices by Country

The average butter export price stood at $X per ton in 2022, picking up by 17% against the previous year. In general, export price indicated a strong expansion from 2012 to 2022: its price increased at an average annual rate of +5.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, butter export price increased by +37.2% against 2020 indices. The growth pace was the most rapid in 2017 an increase of 62%. Over the period under review, the average export prices reached the maximum in 2022 and is likely to see steady growth in the near future.

Average prices varied noticeably for the major export markets. In 2022, amid the top suppliers, the highest price was recorded for prices to the United States ($X per ton) and Indonesia ($X per ton), while the average price for exports to Canada ($X per ton) and Japan ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to the United States (+7.9%), while the prices for the other major destinations experienced more modest paces of growth.

Butter Imports

Imports into New Zealand

In 2022, overseas purchases of butter increased by 18% to X tons, rising for the fourth year in a row after two years of decline. In general, imports saw a notable increase. The most prominent rate of growth was recorded in 2016 with an increase of 117% against the previous year. As a result, imports attained the peak of X tons. From 2017 to 2022, the growth of imports failed to regain momentum.

In value terms, butter imports skyrocketed to $X in 2022. Over the period under review, imports posted a prominent expansion. The pace of growth appeared the most rapid in 2016 when imports increased by 117%. As a result, imports reached the peak of $X. From 2017 to 2022, the growth of imports failed to regain momentum.

Imports by Country

In 2022, India (X tons) constituted the largest butter supplier to New Zealand, with a 53% share of total imports. Moreover, butter imports from India exceeded the figures recorded by the second-largest supplier, Ireland (X tons), twofold. The third position in this ranking was held by Denmark (X tons), with a 16% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from India stood at +52.6%. The remaining supplying countries recorded the following average annual rates of imports growth: Ireland (+20.4% per year) and Denmark (+7.2% per year).

In value terms, the largest butter suppliers to New Zealand were India ($X), Ireland ($X) and Denmark ($X), together accounting for 88% of total imports.

Among the main suppliers, India, with a CAGR of +56.8%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2022, the average butter import price amounted to $X per ton, rising by 22% against the previous year. Over the last decade, it increased at an average annual rate of +1.3%. Over the period under review, average import prices reached the maximum at $X per ton in 2017; afterwards, it flattened through to 2022.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was Australia ($X per ton), while the price for India ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Ireland (+24.0%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

Frequently Asked Questions (FAQ) :