DairyNZ Urges Farmers to Plan for Higher Costs in 2026/27 Season
Farmers should be cautiously optimistic as the 2026/27 season kicks off, says DairyNZ.
The last two dairy seasons confirm this. The 2024–25 season was a bumper year for the sector. A higher payout was the main driver, but farmers also lifted milksolids production per cow and per hectare, which supported stronger returns.
DairyNZ also points out that one significant positive trend, sometimes overlooked, was the reduction in dairy farmer debt in the 2024-25 season.
Record Production in 2025–26
While the final numbers are still being forecast, the recently concluded 2025–26 season is shaping up to be another strong one for dairy farmers, with production reaching record levels and the milk price staying above $9/kgMS for the second season in a row.
The 2025–26 season finished on a series of records. Based on DairyNZ’s production data, national milksolids are set to reach around 2.02 billion kgMS, the first time New Zealand has passed the two-billion mark, and about 4.5% above the previous season’s 1.94 billion kgMS.
Stronger Financial Position for Farmers
Many farms enter winter with their strongest balance sheet in recent years with strong production and a solid payout.
However, there remains concerns around rising costs.
Farmers know that this reinforces the need to continue to shift focus on-farm from maximising production to maximising profitable production.
DairyNZ Advises Cautious Optimism
DairyNZ is advising cautious optimism going into the new season.
The sector is in a relatively good position; however, regional feedback suggests farmers are planning for elevated costs to persist beyond this season, particularly fertiliser and fuel.
Farmers know what to do: stress-test budgets, be selective with fertiliser use, build flexibility into spring and summer feed strategies and maintain a cash buffer where possible.
