DairyNZ: Strong payouts offset high farm costs
The dairy sector is in a relatively stable position, with strong milk price payout forecasts continuing to offset ongoing high farm costs, according to DairyNZ.
DairyNZ has set a new levy rate of 4.5c/kgMS from 1 June 2025 and aims to keep the levy at no more than this rate for a minimum of three years.
The decision to adjust the levy for the first time in 16 years follows a comprehensive consultation with farmers where DairyNZ held meetings across the country and received more than 1500 formal feedback submissions.
The new rate will allow DairyNZ to continue supporting the country’s dairy farmers to lift profitability and sustainability through science and research, policy advocacy, and extension behind the farm-gate.
DairyNZ chair Tracy Brown says levy payers provided valuable feedback and the adjustment strikes a balance between the different views of farmers while providing certainty for a minimum of three years.
“Some farmers endorsed our work and want us to do more, especially across science and research, while others wanted a stronger commercial focus to keep costs down, or the levy rate to remain unchanged.
“In making the decision, the board carefully considered the feedback, how best to support farmers and provide certainty into the future, the financial sustainability of DairyNZ, and sector resilience.
“Importantly, I want farmers to know that we’ve heard their feedback on areas important to them. We will deliver improvements including in farmer engagement, transparency around levy spending and return on their investment, and our science and research programme to keep the focus sharp on productivity, resilience and sustainability.
“DairyNZ is the only organisation that supports dairy farmers with independent scientific research for our sector alone, therefore we’re committed to delivering the right science in the right way on-farm, and proving its value every step of the way.
“Our vision is to ensure the levy is the best investment of every New Zealand dairy farmer. This commitment underpins everything we do. We will share more details about these improvements over the coming months.”
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