New Zealand will completely ban the export of live animals in 2023 05-01-2021

According to an article published in New Zealand Holstein Magazine, the New Zealand Ministry of Primary Industries announced on April 14 that beginning in 2023, New Zealand will completely ban the export of live animals from the country.


The head of the New Zealand Ministry of Primary Industries, Damien O'Connor, stated that the main reason behind this decision is that New Zealand aims to hold high standards for animal welfare.


After the sinking of the Gulf Livestock 1 vessel in the Sea of Japan, the Ministry of Primary Industries in New Zealand announced that it would temporarily halt the export of livestock and await an investigation into the incident. After investigating, the government of New Zealand discovered that the sunken ship contained dairy cows that were several months below the legal minimum age for export, and additionally, the ship had a fault that seriously affected its safety in navigation. Many believe that New Zealand's new concern for the wellbeing of dairy cows is connected to this incident.


New Zealand a major source of dairy cattle imports for China

Among the dairy bulls imported to China, 38 percent come from New Zealand. The other countries that reliably export dairy bulls to China include Australia, Uruguay, and Chile. With the rising price of raw milk in China throughout recent years, many dairy farms have been fighting aggressively to expand their business, and the need for imported dairy cows has risen greatly. According to data from China's customs office, during the year of 2020, China imported about 266 thousand dairy bulls, an increase of 33.5% YoY, with 101 thousand of these dairy bulls sourced from New Zealand, an increase of 209% YoY. In 2020, 96.6% of the dairy bulls that New Zealand exported were sold to China.


According the New Zealand Statistics Bureau, the total value of the dairy bulls sold by New Zealand to China was about USD 260 million. The rate at which China imports dairy bulls from New Zealand is still increasing; during January and February, China imported about 19 thousand dairy bulls from New Zealand, an increase of 81.4% YoY. Furthermore, during the same time period, China imported only 26 thousand dairy bulls from Australia, a decrease of 10% YoY, which shows that China's reliance on New Zealand for the import of dairy bulls is increasing.


New Zealand ban on dairy cattle export expected to drive dairy industry in China

It is expected that New Zealand's restrictions on the export of dairy cattle will drive the expansion of the local dairy industry in China. As the supply of dairy cattle imports in China decreases, it is expected that the price of raw dairy products in China will increase, which will give an incentive to dairy farmers in China to expand their enterprises. Furthermore, with the constantly increasing demand for processed dairy products, such as yogurt and cheese, it is expected that China's dairy market will experience significant strain and inability to keep up with demand, which will ultimately cause dairy prices to increase significantly.


Therefore, the large-scale dairy companies of China are expected to benefit greatly from this market shift, and it is expected that these companies will deepen their ties with downstream dairy companies, and analysts predict great room for growth of these enterprises.


For more information, please check our resources on China’s dairy products

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