Got this graph from the BNZ which shows the potential revenue of the Dairy industry this year. Like last year there have been concerns over the lack rainfall especially in the North Island and how it is impacting on milk volumes. However the sector is benefiting from the high export prices – in January there were annual increases of 56% in the value of milk powder, butter, and cheese exports and 37% for casein. Combined with an expected 9% increase in milk production this could lead to a $5.6bn increase in revenue from last year which equates to 2.6% of GDP.
Furthermore with a significant amount of milk products going to China this increase in prices has seen China become New Zealand’s number one trading partner with regard to revenue. This has traditionally been NZ’s neighbours Australia. Notice the increase in importance of China since the signing of the free trade deal.