What does DairyNZ do?
DairyNZ is the industry organisation that represents all New Zealand dairy farmers and invests in practical on-farm tools, science, resources and support and advocacy to ensure farmers have a profitable, sustainable and competitive future.
Where does your levy go? (Fact sheet)
Investment for every 100 levy cents.
What is industry good?
An industry good activity has been defined as an activity which:
- Is financially beneficial to New Zealand dairy farmers
- Would not be undertaken by individuals or groups of dairy farmers because either:
- It is too expensive for them to do on their own or
- the benefits could not be captured by those making the investment.
The Milksolids Levy
Who pays the levy?
All dairy farmers who produce milk from cows that is supplied to a dairy company pay the levy. This includes all dairy farmers, sharemilkers, and dairy farm leaseholders. The levy is collected under the terms of the Commodity Levies Act 1990.
The current levy is set at 3.6 cents per kgMS (plus GST).
How is the milksolids levy calculated?
The levy is calculated on the quantity of milksolids supplied to the dairy company. For example, the average dairy farm that milks 413 cows will pay the following:
413 cows x 371 MS per cow - 153,223 kg MS x Annual levy 3.6 cents = $5516 (+GST)
How much is raised through the levy each year?
Around $67 million is collected from New Zealand dairy farmers each year through the levy.
Who decides how the levy money is invested?
An eight member board of directors (five farmer-elected and three independents) decide how DairyNZ invests the levy money that is collected each year. The board’s decision-making is supported by advice from DairyNZ’s senior leadership team.
How are investments monitored?
DairyNZ has auditing and reporting processes in place to show farmers:
- Where the levy was spent
- That the work paid for by the levy was done, and
- That the work provided a worthwhile result to farmers.
When was the last levy vote held and what was the result?
Dairy farmers vote every six years on whether they want to keep paying the levy. The last levy vote was in May 2014 and 82% voted (milksolids weighted) in favour of continuing the levy.
Click here to view the 2014 results and to see how they compare to previous levy votes
When was the levy introduced?
The first levy vote was in 2002 and the first milksolids levy was introduced in June 2003 following the disestablishment of the New Zealand Dairy Board when Fonterra was formed in 2001.
Two independent industry organisations, Dairy InSight and Dexcel, were initially formed. These acted separately to invest the levy on the one hand, and as a provider of dairy industry activities like research and development.
In November 2007, Dairy Insight and Dexcel amalgamated to form DairyNZ.