ACT Immigration Policy Sparks Backlash From Dairy Sector and Government

Immigration Minister Erica Stanford says it's an attack on the dairy sector which relies heavily on migrant workers.

Dairy Sector Relies on Migrant Workforce

2025 data shows between 1400 and 2000 migrant workers are approved for dairy-specific jobs in New Zealand each year to fill employment gaps.

Stanford told Dairy News that for a dairy farmer employing a new migrant worker on a five-year visa, an extra $11,000 will need to be paid upfront.

NZ dairy farmers compete for the migrant workforce with Australia and Canada and Stanford says at the end of the day farmers will need to fork out the money to secure workers.

Concerns Over Cost Shifting to Employers

"If you are a dairy farm worker, a herd manager for example [on a] five-year visa, that's an $11,000 upfront cost that a migrant will have to pay on top of their visa fee, on top of their health check screening, and all those other costs," Stanford says.

Stanford said migrants would probably not be able to pay this upfront cost, which would then fall to the employer.

"I see this new policy as an attack on the rural sector."

Farmers Warn of Worsening Labour Shortages

Federated Farmers dairy chair Karl Dean agrees.

"We think it's poor policy, with negligible benefits and a whole lot of downsides," Dean told Dairy News.

"It's an idea floated by one coalition partner that we hope is not adopted - at the very least, not applied to the agricultural sector."

Dean points our that the Federated Farmers Mid-Season Farm Confidence Survey in January this year showed that farmers' ability to recruit skilled and motivated staff worsened compared to six months earlier (with 23% finding it harder and only 3% easier, compared to findings in the June 2025 survey).

Dairy farmers experienced the sharpest deterioration on this issue.

Dean adds that the dairy sector continues to rely on a flow of migrant staffing and production and this policy just throws up more cost and hurdles.

What Does ACT Want to Introduce?

ACT plans to introduce a $6 per day infrastructure surcharge on temporary work visas, on top of existing charges.

ACT leader David Seymour says this ensures migrants contribute to New Zealand's infrastructure from day one, before they start paying tax.

"The fee is expected to raise around $80 million a year, while remaining more affordable than comparable visas in Australia and the United Kingdom," he says.

Industry Calls for Consultation

Dean says Federated Farmers hasn't reached out to ACT on the policy yet.

"We'll shortly be releasing our 'asks' of political parties as they work on their policies for the November election, and we'll no doubt be engaging with ACT and every other political group."