The government is reviewing the dairy quota allocation system in an effort to maximise export returns for New Zealand's industry.
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Access into a number of dairy export markets is controlled through tariff quotas, which provide access into a market for set volumes at a lower or zero tariff.
The Ministry for Primary Industries sets the dairy export quota allocations each year, which are allocated to eligible processors proportional to the milk they collect from farmers.
Processors must collect at least 0.1 percent of New Zealand's total milk solids to be eligible.
Agriculture Minister Damien O'Connor said the free trade agreements that New Zealand recently signed with the United Kingdom and European Union will offer more opportunities for exporters.
"The new dairy quotas, which will become available under the recent FTAs, means it's timely and prudent to take a fresh look at how we allocate dairy export quota.
"I want to ensure the quota system is working well for everyone, that the value of quota is being maximised, and that opportunity is not being missed.
"We've fought hard for our dairy exporters and secured improved access through these FTAs. I know our dairy industry is looking to take up the benefits under these agreements as soon as possible."
Consultation on the review of the dairy export quota allocation system is expected to begin later this year.
"A key aim of the government and sector roadmap Fit for a Better World is boosting export returns," O'Connor said.
"The dairy sector continues to be a mainstay for New Zealand with dairy export revenue reaching a record $22.1b in the year to June 2022.
"The recent FTAs are going to provide new opportunities for our exporters to grow export revenue even more, boosting New Zealand's economic security as we recovery from Covid-19."
