DairyNZ Strikes Balance With New Levy Rate

DairyNZ has set a new levy rate of 4.5 cents per kilogram of milksolids 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.

“Dairy farmers can be confident DairyNZ will continue to back them with the right tools and support to ensure they have a positive future and can grow their businesses.”

The global demand for sustainable milk, ongoing global trade and shipping disruption, and the Government’s export growth agenda all contribute to the need for an agile and resilient dairy sector – and a strong industry-good body to support farmers.

At the new levy rate, DairyNZ will maintain its focus on three strategic priorities over the next three years – accelerating on-farm productivity, powering more adaptable and resilient farms, and enabling sustainable and competitive dairying.

In line with its strategy reset last year, DairyNZ is working to collaborate better with partners to reduce duplication, strengthen policy advocacy to ensure practical and enduring settings for farmers, deliver smarter, targeted science by focusing on applied research that provides on-farm benefits, and rolling out improved extension events to lift on-farm support, with a renewed focus on more isolated regions.

DairyNZ’s management team continues to apply a more rigorous commercial focus across the organisation, including cutting costs by $5.5m in the past year and refocusing efforts on high-value projects.

DairyNZ will also rebuild cash reserves to an appropriately responsible level over time to ensure it can continue to support farmers through any future trade or biosecurity disruptions.

“Dairy farmers can be rightly proud of their enormous contribution to New Zealand and rural communities, helping to deliver over $25 billion in exports a year and 55,000 jobs,” Tracy says.

“The future of dairy is bright, but that future depends on a strong industry-good body backing dairy farmers, working alongside them, and getting out in front of challenges.

“A huge thank you to those who provided feedback. It was great to meet with farmers alongside our Chief Executive Campbell Parker and hear their views.”

It is DairyNZ’s intention to hold the levy at no more than this rate for three years to provide farmers certainty, while continuing to review it each year as required under legislation.

More information is at Your levy - DairyNZ | DairyNZ

About DairyNZ

DairyNZ is the sector organisation representing New Zealand's dairy farmers. For more information visit dairynz.co.nz 

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