CIAO DATE: 12/2014
August 2014
Centre for International Governance Innovation
Within the dairy industry, New Zealand is a giant. However, the neocooperative and free market management system has attracted the ire of larger competitors such as the United States and the European Union. This paper provides an overview of the history of the New Zealand dairy industry and the changes the New Zealand government has made to remain agile and receptive to change, including restructuring the industry to place the New Zealand Dairy Board and later Fonterra as the sole exporter of dairy products. But, as this paper argues, perhaps New Zealand’s biggest challenges and obstacles lie ahead. In light of potential trade liberalization within mega deals and increasing competition from the United States and the European Union, New Zealand must now be aggressive and innovative in finding new markets, maintaining their export base and standing their ground in the face of cut-throat and unapologetic international competition.
Resource link: The Role of International Trade in the Rise of the New Zealand Dairy Industry from Its Beginnings to the Fonterra Era [PDF] - 286K