NZ dairy production vs retail sales

Got this graph from ANZ ‘Charts that Matter’. While correlation doesn’t imply causation, it’s intriguing that regions with a heavy focus on dairy experienced strong growth in retail sales last year – Otago is the outlier. Dairy farmers are benefiting from elevated prices, increased production (heat and good ground moisture), and a lower NZ dollar which makes our exports more competitive. Around 95% of the milk produced in New Zealand is processed to be exported.

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