From rolling green pastures to global markets, New Zealand’s powerhouse dairy industry has achieved a record-breaking 20.9 billion litres of milk solids while paradoxically reducing its cow numbers, proving that this economic giant is milking every drop of efficiency and innovation.
Key Takeaways
- In the 2022/23 season, New Zealand's dairy industry produced 20.9 billion litres of milk solids, marking a 1.2% increase from the previous year
- New Zealand dairy cows numbered 5.03 million in 2023, down 1.1% from 2022 due to culling
- The average milk production per cow in NZ reached 5,452 kg of milk solids in 2022/23, up 2.3% year-on-year
- Dairy industry contributed $8.3 billion to NZ GDP in 2022/23, representing 3.1% of total GDP
- Total dairy farm cash income reached $12.4 billion in 2022/23 season
- Average dairy farm profit before tax was $1.2 million per farm in 2023
- Dairy exports accounted for 28% of total NZ merchandise exports in 2023 valued at $19.2 billion
- China imported 32% of NZ dairy exports worth $6.1 billion in 2023
- Australia took 12% of NZ dairy exports at $2.3 billion in 2023
- Dairy industry nitrogen leaching reduced by 20% since 2015 to 25 kg/ha in 2023
- 85% of NZ dairy farms have freshwater farm plans by 2023
- Greenhouse gas emissions from dairy totalled 32% of ag emissions or 15 Mt CO2e in 2023
- Dairy full-time employees totalled 28,000 in 2023
- Casual and contract workers in dairy peaked at 25,000 during 2023 season
- Average dairy farm wage was $28.50/hour in 2023 surveys
New Zealand's dairy industry achieved record export revenue through efficient, larger herds and sustainable practices.
Economic Statistics
- Dairy industry contributed $8.3 billion to NZ GDP in 2022/23, representing 3.1% of total GDP
- Total dairy farm cash income reached $12.4 billion in 2022/23 season
- Average dairy farm profit before tax was $1.2 million per farm in 2023
- Dairy exports generated $19.2 billion in revenue for NZ in 2023
- 150,000 people employed directly or indirectly in dairy sector in 2023
- Dairy farming assets valued at $55 billion across NZ in 2023
- Average farm debt per dairy farm stood at $18.5 million in 2023
- Interest costs for dairy farms totalled $2.1 billion in 2022/23
- Dairy industry paid $4.7 billion in wages and salaries in 2023
- Farm working expenses averaged $8.90/kg MS in 2022/23
- Capital expenditure on dairy farms totalled $3.2 billion in 2023
- Dairy sector R&D investment was $450 million in 2023
- Tax revenue from dairy industry estimated at $2.8 billion in 2023
- Dairy farm equity ratio averaged 45% in 2023 surveys
- Processor margins for dairy products averaged 12% in 2023
- Retail dairy prices rose 5.2% in NZ during 2023
- Dairy contributed $1.9 billion to regional GDPs in South Island 2023
- Insurance costs for dairy farms averaged $45,000 per farm in 2023
- Fuel expenses for dairy operations totalled $850 million in 2023
- Veterinary costs per cow averaged $450 in 2023 national data
- Electricity usage on farms cost $1.2 billion industry-wide in 2023
- Water costs for dairy irrigation totalled $320 million in 2023
- Contract labour expenses rose to $1.1 billion for dairy in 2023
- Feed costs represented 25% of total farm expenses in 2023
- Repairs and maintenance budgeted at $250,000 per average farm in 2023
- Dairy industry dividends paid $2.5 billion to shareholders in 2023
- Investment in dairy processing plants totalled $1.8 billion 2020-2023
- Dairy NZ levy collected $60 million in 2023 for farmer services
- Consumer spending on dairy products hit $5.6 billion domestically in 2023
Economic Statistics Interpretation
New Zealand is, on average, an $18.5 million-deep hole of high-stakes ambition and high-grade butter, producing an ocean of export cash that irrigates the entire national economy, but only after paying a king's ransom in interest, fuel, and vet bills for its beloved bovine workforce.
Employment Statistics
- Dairy full-time employees totalled 28,000 in 2023
- Casual and contract workers in dairy peaked at 25,000 during 2023 season
- Average dairy farm wage was $28.50/hour in 2023 surveys
- 12,000 dairy farm assistants employed full-time in 2023
- Processing plant staff numbered 18,500 across NZ in 2023
- Training completions in dairy sector reached 15,000 certificates in 2023
- Female participation in dairy workforce hit 42% in 2023
- Youth apprenticeships in dairy totalled 2,500 in 2023 programs
- Migrant workers comprised 22% of dairy labour force in 2023
- Manager roles on dairy farms numbered 11,000 with avg salary $120k in 2023
- Turnover rate in dairy workforce was 18% in 2023
- Health and safety incidents dropped 25% to 1,200 cases in dairy 2023
- Sharemilkers operated 4,200 herds employing 8,000 people in 2023
- Veterinarians serving dairy numbered 1,200 full-time equivalents 2023
- Nutritionists and consultants totalled 900 in dairy sector 2023
- Transport drivers for milk collection: 3,500 licensed in 2023
- Office and admin staff in dairy firms: 5,200 positions in 2023
- R&D scientists in dairy: 1,100 employed across institutes 2023
- Recruitment costs for dairy farms averaged $15,000 per vacancy 2023
- Overtime hours worked in peak season totalled 2 million in dairy 2023
- Diversity training reached 10,000 dairy workers in 2023
Employment Statistics Interpretation
New Zealand's dairy industry moo-ves forward on surprisingly sturdy, if still imperfect, legs, employing a small army of over 28,000 dedicated souls and nearly as many casual hands to power its economic engine, all while wrestling with turnover and overtime but making encouraging strides in safety, diversity, and a future built on thousands of new certificates and young apprentices.
Export Statistics
- Dairy exports accounted for 28% of total NZ merchandise exports in 2023 valued at $19.2 billion
- China imported 32% of NZ dairy exports worth $6.1 billion in 2023
- Australia took 12% of NZ dairy exports at $2.3 billion in 2023
- USA dairy imports from NZ totalled $1.8 billion in 2023, mainly milk powders
- EU markets received $2.4 billion in NZ dairy products in 2023
- Whole milk powder exports hit 1.6 million tonnes valued at $7.2 billion in 2023
- Skim milk powder shipments totalled 1.1 million tonnes at $4.5 billion in 2023
- Butter exports from NZ reached 180,000 tonnes worth $1.9 billion in 2023
- Cheese exports totalled 250,000 tonnes valued at $3.1 billion in 2023
- Casein exports amounted to 130,000 tonnes at $2.2 billion in 2023
- Dairy exports to Southeast Asia grew 8% to $1.7 billion in 2023
- Middle East dairy imports from NZ valued $900 million in 2023
- Latin America took $450 million in NZ dairy products in 2023
- Africa markets imported $300 million NZ dairy in 2023
- Online dairy export platforms handled 5% of volume in 2023
- Tariff-free dairy access to CPTPP countries boosted exports by $500m in 2023
- Halal-certified dairy exports totalled 40% of volume in 2023
- UHT milk exports reached 500 million litres worth $800 million in 2023
- Infant formula exports from NZ valued $2.8 billion in 2023
- Yoghurt and fermented products exported $450 million in 2023
- Export growth to India hit 15% at $200 million in 2023 post-FTA talks
- Container shipping costs for dairy rose 20% affecting $1b exports in 2023
- Air freight for high-value dairy like cheese was 2% of exports costing $50m in 2023
- Dairy export compliance checks numbered 12,000 shipments in 2023
- NZ dairy export volume totalled 4.2 million tonnes in 2023
- Value per tonne of NZ dairy exports averaged $4,600 in 2023
Export Statistics Interpretation
While New Zealand's economy is thoroughly milked, with China taking a third of the $19.2 billion yield, the industry cleverly spreads its bets from infant formula to halal products, proving it's not just a one-trick cow.
Production Statistics
- In the 2022/23 season, New Zealand's dairy industry produced 20.9 billion litres of milk solids, marking a 1.2% increase from the previous year
- New Zealand dairy cows numbered 5.03 million in 2023, down 1.1% from 2022 due to culling
- The average milk production per cow in NZ reached 5,452 kg of milk solids in 2022/23, up 2.3% year-on-year
- Fonterra's Taupo plant processed 300 million litres of milk in 2023, contributing 1.5% to national throughput
- NZ dairy farms averaged 402 cows per herd in 2023, the highest on record
- Butter production in NZ totalled 240,000 tonnes in 2022, a 3% rise driven by domestic demand
- Cheese output from NZ dairies hit 320,000 metric tonnes in 2023, with 70% exported
- Milk powder production reached 3.2 million tonnes in 2022/23 season
- NZ's dairy sector used 2.8 million hectares of farmland in 2023, 40% of total agricultural land
- Average fat content in NZ milk was 4.85% in 2023 testing
- Protein content averaged 3.92% in NZ milk supplies during 2022/23
- Casein production totalled 150,000 tonnes in NZ for 2023
- NZ produced 1.1 billion litres of fresh milk in 2023
- Dairy effluent management systems covered 95% of NZ farms by 2023
- Irrigation supported 75% of Waikato dairy farms in 2023
- Heifer replacement rate in NZ dairy herds was 18.5% in 2023
- Somatic cell count averaged 160,000 cells/ml in NZ milk in 2023
- NZ dairy industry calving rate achieved 82% nationally in 2023
- Fertiliser use per hectare on dairy farms averaged 220 kg N in 2023
- Pasture yield on NZ dairy farms averaged 14.5 tonnes DM/ha in 2023
- Maize silage production for dairy feed totalled 1.2 million tonnes in 2023
- NZ dairy goat milk production was 20 million litres in 2023
- Organic dairy farms numbered 150 in NZ with 25,000 cows in 2023
- Winter milking systems adopted by 15% of NZ farms in 2023
- Robotic milking systems installed on 450 NZ farms by end of 2023
- Average dairy farm size grew to 142 hectares in 2023
- Milk payout forecast for 2023/24 season at $9.60/kg MS
- Bactoscan results showed 85% of NZ herds under 30,000 in 2023
- Dairy cow liveweight averaged 520 kg in 2023 national surveys
- Supplementary feed use on farms increased to 1.8 tonnes/cow in 2023
Production Statistics Interpretation
While cautiously culling cows and grazing nearly half the country's farmland, Kiwi dairy farmers achieved a record-breaking paradox in 2023: fewer, larger, and more strategically pampered herds managed to squeeze out more premium milk solids than ever before, proving that in New Zealand, the path to agricultural efficiency is paved with better data, sharper technology, and a whole lot of carefully managed grass.
Sustainability Statistics
- Dairy industry nitrogen leaching reduced by 20% since 2015 to 25 kg/ha in 2023
- 85% of NZ dairy farms have freshwater farm plans by 2023
- Greenhouse gas emissions from dairy totalled 32% of ag emissions or 15 Mt CO2e in 2023
- Water use efficiency improved to 80 litres milk per litre water in 2023
- Biodiversity projects on 60% of dairy farms planting 5 million trees by 2023
- Soil organic carbon levels stable at 4.2% on monitored dairy farms 2023
- Effluent compliance rate reached 98% on dairy farms in 2023 audits
- Renewable energy use on farms hit 35% of total energy in 2023
- Methane inhibitors trialled on 20% herds reducing emissions 10% in 2023
- Riparian planting covered 120,000 km on dairy land by 2023
- Farm environment plans adopted by 92% of dairy operations in 2023
- Phosphorus loss reduced to 0.25 kg/ha on average dairy farms 2023
- Sustainable dairy certification held by 75% of processors in 2023
- E-coli in waterways near farms down 30% since 2018 to 2023
- Low-emission feed additives used on 15,000 cows trialling in 2023
- Carbon farming credits earned $50 million for dairy farmers in 2023
- Waste diversion from dairy plants reached 95% recycling rate 2023
- Biodiversity offsets protected 50,000 ha dairy-adjacent land in 2023
- Farm carbon audits completed for 4,000 dairy farms in 2023
- Water quality index for dairy catchments improved to 72/100 in 2023
- Regenerative agriculture practices on 25% of farms boosting soil health 2023
- Ammonia emissions cut 12% via housing trials on 500 farms 2023
- Pest control reduced rodent numbers 40% on dairy farms 2023
Sustainability Statistics Interpretation
New Zealand's dairy sector appears to be milking its sustainability goals for all they're worth, making laudable strides in water, land, and climate measures while still grappling with the colossal udder in the room: its outsized contribution to agricultural emissions.
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