NZ dairy exports to the Kingdom double

Fonterra Co-operative Group has signed a three-year supply agreement with one of Saudi Arabia's largest food distributors, doubling the volume of infant formula and specialised dairy products exported to the Kingdom.

The deal, valued at approximately NZ$120 million annually, positions New Zealand as a tier-one dairy supplier to Saudi Arabia alongside established European competitors.

Why Saudi Arabia?

Saudi Arabia imports over 90% of its food requirements and has identified food security as a strategic priority under Vision 2030. The Kingdom's infant formula market alone is valued at US$800 million annually, growing at 6% year-on-year.

New Zealand's grass-fed, free-range dairy systems align with growing Gulf consumer demand for natural, hormone-free products.

Supply chain

Product will be manufactured at Fonterra's Edendale and Darfield plants in the South Island, shipped via Tauranga to Jeddah Islamic Port, with cold-chain logistics managed by the Saudi distributor's national network.

Chamber role

The Chamber facilitated initial introductions between Fonterra's Middle East division and the Saudi distributor at our 2025 Riyadh trade mission. We continue to support New Zealand food exporters entering the Saudi market through our GROW and LEAD membership tiers.