Dairy exports to China down in December

Typically, monthly dairy exports rise towards the end of the year, with a peak in December.

'For the first time since 2008, dairy exports fell between November and December,' Mr. Allen said.

'Dairy exports fell in the month despite a slight rise in milk production in the 2019/20 season, with dairy cow herd numbers relatively steady.'

Leading the total falls in December 2020 were milk powder, down $227 million, butter, down $62 million, and milk fats, down $51 million on the same month in 2019.

'The drop in dairy exports was mainly due to a fall in sales to New Zealand's biggest export market, China,' Mr Allen said.

Total dairy exports to China fell $194 million (21 percent) to $740 million in December 2020. This was led by falls in milk powder, down $113 million.

'This is also the first time in six years that there has been a fall in dairy product exports to China in the December month,' Mr Allen said.

The large fall in dairy exports was a key factor in total exports falling $149 million in December 2020 compared with December 2019.