Dairy products make up 19% of New Zealand`s total export earnings and account for around 31% of the world trade in dairy products. As the world`s largest producer of dairy goods, New Zealand has the most varied product range including milk, milk powder, cheese and yoghurt. More than 60 varieties of cheese are produced in New Zealand, totalling around 30,000 tonnes of cheese per year. Ninety percent of all dairy products are exported.
There are three major dairy manufacturing companies in New Zealand - Fonterra, Westland and Tatua. Fonterra is the largest, and supplies 95% of all milk produced in New Zealand. The North Island has 82% of the country`s dairy cattle, with over a third of these in the South Auckland region. Significant technological changes have occurred in the food and beverage manufacturing industry over the last decade as companies develop more efficient and diverse methods of processing and packaging products. Training has also become increasingly important as workers need to have the skills to work with the technology available. While the reduction of global tariffs and quotas is opening up new export markets to New Zealand, the decline of the major economies, such as the United States, is affecting global markets. This may affect New Zealand manufacturers in the future if prices and demand falls. The New Zealand Institute of Economic Research forecasts an overall growth of 1.8% in the food and beverage manufacturing industry to 2006. Factors influencing growth include the value of the New Zealand dollar, economic conditions in key markets, and barriers to export markets such as tariffs and quotas.