Dairy is the rock on which New Zealand's entire ag sector, and for that matter the entire country's industrial base, is built. And that foundation keeps getting additional mortar as dairy accounted for 46.7 percent of all agricultural exports when reviewing the final numbers for the 2013-2014 business cycle. That's up from 41.1 percent for the 2012-2013 agricultural campaign in the country whose growing season ends in May to June because it is in the Southern Hemisphere. On a dollar basis, dairy was $17.6 billion of the $37.7 billion in total ag-based exports.
Not only is dairy a big player among ag commodities, it garners significant share among all industries as mentioned earlier. Dairy exports accounted for 35 percent of total New Zealand merchandise export value, reported the country's Ministry for Primary Industries.
Export projections for the upcoming year show a slight retreat on a dollar basis mainly due to forecasts for softer dairy prices, which are pegged to be down from the previous season's record highs. As a result, the Kiwi government estimates that dairy exports will be in the $15.8 billion dollar range, down $1.8 billion for the new sales cycle. Then there will be a steady rise through 2018 to a new high of $18.4 billion based on the New Zealand dollar. Presently, the New Zealand dollar is worth 85 cents of its American counterpart.
As for its tops customers, China now buys 36 percent of New Zealand's exported dairy products. That is followed by the rest of Southeast Asia at 17 percent. That 17 percent figure does not include Japan's 4 percent and Taiwan's 2 percent. As a whole, the Middle East and North Africa purchased 13 percent of the Kiwi's dairy products last year.
Cow numbers in New Zealand are estimated at 5 million. That number is expected to grow steadily through 2018 and reach 5.5 million, projected the Ministry for Primary Industries.
