Hon Todd McClay
Minister for Trade
Minister of Agriculture 

15 October 2024

The Government’s work to boost export value has hit another milestone, with a new dairy Bill passing its first reading in Parliament today, Agriculture Minister Todd McClay announced.

“The Dairy Industry Restructuring (Export Licences Allocation) Amendment Bill will modernise New Zealand’s dairy export quota system to grow export and farmgate returns,” Mr McClay says.

“More dairy companies are manufacturing niche and high-value products, but the current system excludes many of them from receiving dairy export quota - this is a lost opportunity for those businesses and for New Zealand.”

This Bill follows a review of the dairy export quota system in 2023, which identified opportunities to improve quota allocation, to better reflect the diversity of the dairy industry.

New Zealand currently administers quota allocation for bovine dairy exports to the United States, the United Kingdom, the European Union, Japan, and the Dominican Republic.

“The Bill proposes changes to the export quota system that include shifting quota allocation from the proportion of milk solids a company collects from farmers, to a system based on their export history.

This will maximise and further boost dairy’s $23 billion in annual export revenue by allowing a wider range of exporters to tap into new markets and opportunities,” Mr McClay says.

The Bill also enables portions of individual quotas to be reserved for dairy exporters currently ineligible for quota and those only eligible for less than 200 tonnes.

“It will also unlock quota for non-bovine animal dairy exporters, such as sheep, goat and deer milk processors, opening up new export opportunities and revenue streams.”

“This is all part of the Government’s work to support a successful primary sector and achieve our ambitious goal of doubling exports by value in ten years.

“The Government is committed to backing our primary producers, returning value to the fame gate and boosting our economy, because it is only through a strong economy we can lift incomes, reduce the cost of living and afford the public services Kiwis deserve.”

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