New Zealand's dairy sector is expected to remain competitive - amid a surge in global supply

Rabobank's latest research shows US milk suppliers have increased for five consecutive months, and UK and EU are experiencing their sharpest growth in almost a decade.

That's expected to push global dairy prices down.

Lincoln University Adjunct Professor Jacqueline Rowarth says while other countries can produce milk quicker than us, our milk is still popular.

She says cows in many other countries eat supplements, and New Zealand's milk is in demand because it's grass-fed.