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Abstract

New Zealand and Australia comprise the largest dairy exporting block in world markets and the dairy industries of both countries have geared up in recent years to expand production of dairy products. The report synthesizes observations and insights from a site visit by the authors in February 2004 that involved extensive interviews with dairy industry leaders, academics and government officials in New Zealand and Australia. The focus is on the nature of competitive challenges to U.S. dairy farmers, processors, and exporters. The report addresses questions related to the potential for expanding milk production in the two countries, export niches with respect to product mix and destinations, and likely strategic behavior of major Oceania exporters.

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