It’s already New Zealand’s biggest industry – what more can it
do? If New Zealand is to double the value of exports by 2035,
dairy must surely do a lot of the heavy lifting. But how much
more growth and innovation can we expect to see? With so
much pressure facing the sector from both home and abroad,
where does sustainable growth come from? And without
dairy, can New Zealand do it?
- Dairy is unparalleled by any other sector, growing almost 10-fold in 30 years.
- Growth is in volume and value; and forecasts suggest more to come.
- New threats are emerging from dairy alternatives, climate change, methane liability and a shifting China market.
- Old threats remain: fractured supply chains, trade barriers, land-use change, and environmental concerns.
- To grow, dairy must innovate along the entire value chain. But this requires new skills, attitudes, and technologies.
- Fonterra, the largest operator, is resetting its strategy with a focus on added value and innovation.
- Others must follow its lead.
