New Zealand exports of major dairy products were mixed in February, with negative YOY trends for WMP, but growth in shipments of SMP, cheese and fats. WMP exports fell 9.4% YOY to 129,840t in February– trade has now declined in the seven consecutive months since August 2021. The overall contraction in February WMP trade reflected a 25.4% YOY reduction in shipments to China & HK – due to stronger exports in earlier months. Season-to-date shipments to this key market were up by 4.7%.

SMP exports were 30,256t in February, up 26.6% YOY – the first expansion since October last year despite shipments to China & HK declining nearly a third relative to the same month in 2021. Cheese exports also rose YOY for the first time since October 2021 – up 1.2% to 29,499t, with shipments to China & HK tracking much lower since August. Season to date cheese exports were down 0.6% relative to the comparable.

Despite the February increase, fats continue to track lower as buyers in developing regions push back on high prices. February shipments of butter and AMF were up by 22% YOY and 4.6% YOY respectively, reflecting better import demand from China. Season-to-date shipments of both products were down by 3.8% YOY and 12.8% YOY respectively.