Have you ever thought cows could be economic superheroes?
Well, in New Zealand, they practically wear capes. The dairy industry, a bovine ballet of milk and innovation, not only defines New Zealand’s rural scenes but also plays a pivotal role in the nation’s economic symphony.
In today’s fascinating story, we will learn how the milk and dairy products industry took New Zealand’s economy to enormous heights and the latest digital marketing strategy for the country’s dairy industry.
Here’s a little fun fact for you!
In New Zealand, cows aren’t just part of the scenery. They’re the cash cows of the economy. The country’s population is about 52 lakhs, but the interesting thing is that it has 10 crore cattle. Cattle include dairy cows, beef cows, and deer.
Employment opportunities sprout like clover in spring, with a diverse array of professionals finding their niche in the dairy industry. From farm hands to cow whisperers and milk aces, the industry’s job offerings contribute to a colourful mosaic of rural livelihoods.
The dairy sector in New Zealand is a powerhouse. The country’s unique geography and climate provide ideal conditions for dairy farming, allowing cattle to graze on lush, rich fields and valleys year-round. At the heart of this juggernaut are millions of dairy cows scattered across the country’s rolling green pastures.
This results in milk with a rich taste and nutritional profile. Today, New Zealand is among the world’s leading exporters of dairy products. So, let’s tip our hats to these caped crusaders, the cows, who are more than milk machines; they are the backbone, the very lifeblood of New Zealand’s economy.
Here are a few questions to which we will find out
- How do cows contribute to this massive segment of New Zealand’s economy?
- What is the future of New Zealand’s dairy economy?
- What are the current challenges to this sprawling dairy industry?
- How can digital marketing solve the challenges?
Table of Contents
1. How do cows contribute to this massive segment of New Zealand’s economy?
Let’s understand some basic economics.
What is the economy of a country?
The economy is where things are produced and consumed, trade happens, and items are produced and distributed. An economy is often divided into three categories: Primary, Secondary, and Tertiary.
The primary sector refers to agriculture and activities related to agriculture, which directly earn money from the environment or earth’s resources.
The secondary sector means manufacturing, where the output of the primary sector is transformed and processed so that new things are made from it.
The tertiary sector is the services sector, which focuses on distribution. This is where all industries supporting the primary and secondary sectors come from.
You must have read in economics textbooks in your childhood that often, countries that are dependent on the primary sector, i.e. agriculture, are underdeveloped. As a country develops, it focuses on manufacturing.
As development progresses, it focuses on the tertiary sector, i.e., the service sector.
But New Zealand’s economy is unique.
If you look at New Zealand’s GDP, 7% comes from the primary sector, i.e. agriculture. However, if you look at New Zealand’s top exports, 6 of the top 10 items are related to agriculture, farming and food processing.
Source: OEC World Statistics 2023
Almost 60% of their total exports come from this sector alone, which is significant. In New Zealand, the top two exports are butter, cheese, and whole milk powder, and the top five are skim milk powder.
This means that for the happiness of New Zealand, animals, as much as humans, are also responsible for their development.
Did you know that the dairy sector in New Zealand contributes over 10 billion New Zealand dollars to the country’s economy?
That’s money. It’s not just about milking cows. It’s about milking opportunities. A report by DairyNZ and DeCans shows that the dairy industry has been a cash cow for New Zealand, generating nearly $26 billion in export revenue in the year leading up to April 2023.
The industry’s growth has been utterly impressive, with the value of dairy exports increasing by a whopping 45% over the last five years. Now, let’s take a moment to digest these figures. It’s not just about the dollars and cents; it’s about the people and communities who are the absolute cream of this industry.
It’s no wonder that over 95% of milk produced in the country is processed for export. In essence, the dairy industry is much more than the agriculture sector in New Zealand. It’s an economic linchpin. It’s not just important; it’s the cream of the crop.
The verdant pastures and contented cows define the country’s landscape and underpin its economic prosperity. So only cows provide us with delicious milk and cheese. They also help keep New Zealand’s economy churning. Talk about the absolute cream of the crop.
2. What is the current scenario of New Zealand’s dairy economy?
Fonterra Cooperative Group is New Zealand’s largest company. That means it is a Farmer-Owned Cooperative. This one company exports 30% of the world’s dairy. Its products are sold in 140 countries. And it directly employs 10,000 people. In a country with a population of just 50 lakhs, employing 10,000 people in just one company is a big deal.
Some other prominent dairy farms in New Zealand are Open Country Dairy Ltd, the New Zealand Dairy Company, Synlait, Westland Milk Products, Miraka, Tatua Cooperative Dairy Company, Mataura Valley Milk, and Oceania.
Just having more cows does not make the economy rich. The right use of resources should also come. And this will only happen when the government supports the farmers and makes good policies that will help everyone in the long term.
In 1984’s economic reform, the New Zealand government removed agriculture subsidies and focused on farmers’ self-reliance. After reforms, the focus was on quality rather than quantity. Discussions began on how to make the land more productive and increase its output.
The government focused on making farmers technologically advanced, enabling them to get low-interest loans, and providing them with market support and training.
And those farms that earlier sold only unprocessed products have now started selling processed products. They have started processing products. They have started coordinating their products with different supermarket chains and matching their production.
The dairy sector is changing, and demand is now shifting towards whey protein. So, New Zealand farmers are focusing on milk products and milk protein products manufacturing. They know that businesses do not operate in a vacuum. Many adjustments have to be made as market feedback changes.
New Zealand tops the Ease of Doing Business list. Corruption is the lowest here, which is also a driving force behind the tremendous growth of the country’s dairy industry.
3. What are the current challenges to this sprawling dairy industry?
New Zealand’s dairy market will grow and stabilize in 2025, driven by favourable weather conditions and recovering demand from key export markets like China.
However, Small to medium dairy firms in New Zealand, particularly those with a turnover of NZD 1-5 million, often struggle to compete in the export market. This is due to several factors.
- Large players like Fonterra dominate the export market, making it difficult for smaller firms to compete.
- Environmental regulations and sustainability requirements add costs and complexity for smaller firms.
- Global supply constraints and changing demand dynamics can impact profitability.
4. How can digital marketing solve the challenges?
Digital marketing strategies can help small to medium dairy companies overcome these challenges by enhancing their local presence and operational efficiency. Key strategies include
Search Engine Optimization (SEO):
Enhance online presence to reach local and international customers. Relevant content that aligns with Google’s algorithm updates to attract specific clients.
Google Business Profile:
Ensure that local clients can easily find and review your business. Use your Google Business Profile to showcase customer reviews and ratings, improving the trust and credibility of both international and local clients.
Social Media Regular Posting:
Use platforms like Facebook, Instagram, and LinkedIn to increase brand awareness and engage with potential clients. Develop a content strategy that showcases products, company news and industry insights to attract followers and drive website traffic.
AI-Based Data Analytics:
Analyze market trends, consumer behaviour, and operational efficiency. Provide actionable insights for strategic decision-making, optimize production and supply chain management, and help identify new market opportunities.
AI Chatbot:
Automate customer service and improve customer engagement. Offer 24/7 customer support. Reduce operational costs and enhance customer experience through personalized interactions.
By leveraging these digital marketing strategies, small—to medium-sized dairy firms in New Zealand can improve their competitiveness, enhance customer engagement, and better navigate the challenges of the global export market.
Finally, this is the current New Zealand Dairy Industry scenario, and we can use organic digital marketing Strategies in 2025 to support small and medium dairy companies.
Now, it’s your turn to step up for your business.
If you want to know 5 key benefits of Local SEO, you can click here.
Thanks for reading; keep learning.
