The Mintec price of New Zealand Whole Milk Powder (WMP) bounced back by 4.4% week-on-week (w-o-w) to NZD 5,134/MT on 8th September, ahead of the peak milk production season in late-October. This price rise breaks the downward trend since the week of 7th July, when prices reached NZD 5,975/MT and subsequently plummeted to NZD 4,919/MT on the week of 1st September. This price drop was due to buyers in the Middle East, North Africa and Asia waiting for New Zealand WMP prices to return to more affordable levels before committing to purchases, thus impacting demand levels.
New Zealand is heavily reliant on WMP overseas demand, particularly from Southeast Asian markets and China. In 2020, New Zealand exported almost 99% of its production. In H1 2021, New Zealand WMP exports hit a record high of 883 million tonnes. This represents an increase of 15% y-o-y, which equates to an additional 115,000 tonnes. The high export growth is mainly due to higher demand from China (+62.6%, +157,500 tonnes) and Indonesia (+71.3%, +15,400 tonnes ). Despite New Zealand WMP prices being at a premium to European prices, many buyers, particularly from Asia, often prefer WMP from New Zealand due to quality reasons and quicker deliveries.