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Dairy                                                                                                                              ...1 of 4 >
March 17, 2018 - Dairy cattle in the Waihara area.
Missionary Samuel Marsden introduced the first dairy cows in the Bay of Islands in 1814.  By the late 1980s/early 1990s returns from dairy surpassed sheep farming (although there are still  far more sheep than dairy cattle).  Today dairy is New Zealand's largest export earner. accounting for more than one quarter of the total value of annual exports.  Northland contributes a modest share of New Zealand's dairy production.  There are over 1,000 herds in the region or about 9% of the nationwide total.

Any discussion of dairy in New Zealand must include Fonterra, "New Zealand's biggest company and the world's largest processor of dairy products."  Fonterra is a cooperative of 10,500 farmers formed by a "mega-merger" in 2001.  Fonterra milk trucks are a very familiar sight on the roads in Northland, and the company has a large processing plant north of Whangarei.  Another major player in the dairy market is Goodman Fielder, the privately held Australian company which supplies many leading brands.

  • According DairyNZ, as of Nov. 2017, the Northland had 1,030 dairy herds comprising 308,587 milking cows spead out over 138,040 hectares of land or 6% of New Zealand's total of 4.8 million milking cows, 9% of the 11,748 dairy herds, and 8% of the total of 1.7 million hectares of dairy land. 
  • According to Stats NZ, in 2016 there were 404,415 dairy cattle in Northland out of 6.47 million nationwide.  By comparison there were 358,823 beef cattle and 366,197 sheep in Norrhland, and  3.61 million beef cattle and 27.37 million sheep nationally.
  • According to a report by NZIER, in 2016 dairy accounted for 6.0% of Northland regional GDP compared to 3.5 percent of national GDP.
  • According to DCANZ, New Zealand accounts for about 3% of total world milk production putting it at number eight in the world (+), but it exports about 95% of its production.  
  • Dairy is New Zealand's largest export sector.  According to Stats NZ, dairy products accounted 26.1% of  the total value of annual exports for the year ended Dec. 2017—NZ$14.0 billion of NZ$53.7 billion.
Beyond such variables as weather, input costs and milk prices, the industry faces a number of broader challenges.  In Dairy NZ's 2016-17 annual report, chairman Michael Spaans noted that dairy was "at the centre of an election debate about immigration, greenhouse gases, water allocation and water quality."  Environmentalists have put a particular focus on water quality, and while the industry and governments signed a voluntary "Dairying and Clean Streams Accord" in 2003 and a "Sustainable Dairying: Water Accord" in 2014, critcs say they have not done enough.  For example in a colorfully worded Nov. 2017 press release, Greenpeace New Zealand argued that "the only thing that will save our rivers...is fewer cows.”  Also of note to the industry, in 2017 the cattle disease mycoplasma bovis was found in New Zealand's herd for the first time, leading to a major effort to stop the disease from spreading. 

Dairy cattle near the turnoff to Marsden Cove.
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The industry has changed over the decades...
Closed dairy factory in Awanui near Kaitaia.
The dairy factory in Dargaville closed in 2000.
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Fonterra milk trucks at a depot in the Dargaville area.

Fonterra's Kauri site, established in 1989, is located north of Whangarei.  According to Fonterra, the Kauri site "produces about 116,000 tonnes of skim milk, whole milk and nutritional powders, speciality butters and anhydrous milk fats (AMF) each year."  It can process up to three million litres of milk a day at peak.


Notes:
Hugh Stringleman and Frank Scrimgeour, "Dairying and dairy products," Te Ara - the Encyclopedia of New Zealand, Nov. 24, 2008.  http://www.TeAra.govt.nz/en/dairying-and-dairy-products

Andrea Fox.  "Mega-merger of dairy industry was 'miracle."  Stuff, Oct. 15, 2013.
http://www.stuff.co.nz/business/farming/9283772/Mega-merger-of-dairy-industry-was-miracle

Theresa Sjoquist.  "New Zealand's Early Far Northern Dairy Co-Operatives."  July 12, 2013.
http://www.theresasjoquist.com/?p=346

--.  "Dairy trade’s economic contribution to New Zealand." NZIER, February 2017.
https://nzier.org.nz/static/media/filer_public/29/33/29336237-3350-40ce-9933-a5a59d25bd31/dairy_economic_contribution_update_final_21_february_2017.pdf

--.  "Review of the state of competition in the New Zealand Dairy Industry."  Commerce Commission New Zealand, Mar. 1, 2016.  http://www.comcom.govt.nz/regulated-industries/dairy-industry/report-on-the-state-of-competition-in-the-new-zealand-dairy-industry/

--.  "Trade with China nearly tripled in past decade."  Stats NZ, Sept. 7, 2016.
http://archive.stats.govt.nz/browse_for_stats/industry_sectors/imports_and_exports/trade-china-tripled-decade.aspx

--.  "Dairy and Products Annual: New Zealand Annual Dairy and Milk Supply Report 2017."  USDA Foreign Agricultural Service, Oct. 15, 2017.
https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Dairy%20and%20Products%20Annual_Wellington_New%20Zealand_10-16-2017.pdf

--, "Dairy farming is polluting New Zealand's water."  The Economist, Nov. 6, 2017.
https://www.economist.com/news/asia/21731435-government-data-suggests-60-rivers-and-lakes-are-unswimmable-dairy-farming-polluting-new

--.  "DairyNZ’s latest water plan a gutless betrayal,"  Greenpeace New Zealand, Nov. 22, 2017.
http://www.greenpeace.org/new-zealand/en/press/DairyNZs-latest-water-plan-a-gutless-betrayal/




more information:



 www.dairynz.co.nz





www.dcanz.com


www.fonterra.com



www.nddt.nz

 www.nzdwu.org.nz



www.dwn.co.nz



MPI-Dairy products