The Government is brushing away grower concerns about a looming potato invasion from the European Union.
This is despite China’s imports being 12% up in the year to September 2017 and increasing a whopping 34% (53,000 tonnes) in September versus the same month last year.
NZ’s total dairy exports for September decreased 7% (14,000t) versus the same month last year.
Exports for the 12 months to September 2017 were down 2%.
“Weak powder numbers led the decline, with whole milk powder (WMP) and skim milk powder (SMP) down 11% and 26% respectively,” the update says. “Fluid and fresh dairy growth continued, up 9000t (39%) for September.”
Weak volumes for SMP, AMF and butter – down 11%, 14% and 10% respectively – led to the overall 2% decline in exports in the year to September.
Fonterra Australia dairy exports were down 3% both in September and for the year to September 2017.
Meanwhile the latest figures show European Union dairy exports rose 5% in the 12 months to July 2017 and 10% (40,000t) in July versus the same month in the previous year.
Exports of SMP increased significantly, up 70% (30,000t). Fluid and fresh dairy and infant formula also had solid growth, up a combined 9%. This was partially offset by declines in whey powder, down 16% in July.
Exports for the 12 months to July were up 5% (227,000t) on the previous comparable period. SMP, infant formula, cheese and lactose exports increased significantly, up a combined 265,000t (13%), offset by declines in fluid and fresh dairy, butter and AMF, down a combined 56,000t.
US exports were up 11% for the 12 months to September 2017 but decreased by 6% (11,000t) in September versus the same month the previous year.
This was the second consecutive month of declining US exports.
Leading China’s increase in imports were WMP, infant formula and SMP, up a combined 96% (33,000t) in September.
“Imports continue very strong into China, with almost all categories showing growth this year: WMP, infant formula and SMP grew the most, up a combined 22% (179,000t),” the Global Dairy Update says.