New Zealand exports of major dairy products fell in August, led by WMP and despite improvements in other key product categories we track. WMP exports for the month fell 29.4% YOY to 47,459t. WMP exports to China & HK were down 54.9% YOY in August and behind 32.5% or 204,520t for the past year, reflecting higher local manufacture of product and lockdowns causing much weaker internal market consumption.

SMP exports were 16,424t in August, up 71.5% YOY (or 6,845t) with China & HK accounting for most of that growth, but also with expansion into SE Asia. The 29.2% overall increase in SMP shipped volumes in the past 6 months reflected changes in product mix and an improved exportable surplus, despite tight milk supplies.

Reflecting improved import demand from China & HK, cheese exports have increased since August last year, with August shipments for this year 18.7% ahead YOY at 23,045t. Fat exports rose 24.6% in combined commercial butter equivalent terms in August – butter was up 37.6% YOY while AMF rose 10.3% YOY.