Why isn't Australia exporting the same amount of milk products as New Zealand?
Australia exports less milk than New Zealand for two main reasons: primarily due to its larger population, which increases local consumption, and because New Zealand produces more than double the amount of milk Australia does.
Last updated 31/01/2025
There are two key reasons why Australia exports less milk than New Zealand. The first is population size. Australia’s larger population (25.1 million compared to New Zealand’s 4.9 million as of June 2018) means a higher local demand for dairy products, leaving less for export. In contrast, New Zealand exports around 95% of its milk, while Australia exports about 36%.
The second reason is milk production capacity. New Zealand’s climate and landscape are highly suited to dairy farming, resulting in far greater milk production. In the 2017/18 year, New Zealand produced 20.7 billion litres of milk, while Australia produced 9.3 billion litres.
Despite exporting less, Australia remains a significant player in the global dairy market, ranking as the fifth-largest exporter with a 6% market share, just behind New Zealand.
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