New Zealand: Grain and Feed Market Situation

New Zealand’s grain and feed sector is relatively small on a global scale, producing around 2.1 million metric tons (MMT) annually, well below the country’s total demand for feed, leading to the import of approximately 60 percent of its grain and feed needs. Dairy consumption accounts for 75 percent, while poultry makes up another 12 percent. Strong dairy prices and expanding poultry production efficiency have resulted in a steady demand for supplemental feed. This includes imports of palm kernel extract, wheat, soybean meal, and distillers dried grains with solubles (DDGS). However, the grain sector is under pressure from high on-farm inflation, which includes elevated input costs and interest rates. This financial strain has partially offset the advantages of strong milk and meat prices.