NewZealand milk production increases 25.9%, making the country the largest exporter over the projection period.

And third, Australia and New Zealand, which account for 40% of the world's dairy trade, have scaled back milk production forecasts for 2011 due to adverse weather negatively impacting pastures.

In 2008, Fonterra, one of New Zealand's largest companies, faced a wave of criticism in the aftermath of the milk scandal.