Palm kernel is the most commonly used supplementary feed for dairy cows in NZ. However, low demand in late 2014 means there should be ample supply heading into 2015 if dry weather affects dairying regions.
The volume imported in the 11 months to November 2014 was 1.9 million tonnes, exceeding the full year total of 1.6m tonnes for 2013, which was a record at that time. Initially the spike in imports was due to a combination of high milk prices for the first half of 2014 and dry weather. However, in the second half of 2015, retail prices for palm kernel in NZ dropped to extremely low levels on the back of weak demand from the NZ dairy sector.
