Your Levy

The levy is calculated on the quantity of milksolids supplied to the dairy company. For example, here’s how the levy is calculated for an average farm milking 448 cows at the levy rate of 3.6c/kgMS.

(448 cows x 400 MS per cow) x (3.6 cents annual levy / 100) = $6,451.20 (+GST) per year.

The increase in 2025 from 3.6c to 4.5c increases a farmer’s annual milksolids levy payment by $900 per 100,000 MS.

The total amount raised through the levy each year fluctuates as it is dependent on the quantity of milksolids supplied to dairy companies. For the year ended 31 May 2024 DairyNZ collected $67.8 million from New Zealand dairy farmers. From 2025 this is expected to be approximately $84.7 million a year.

$14.5 million of the total levy is collected on behalf of TBfree and passed on directly. The balance is invested by DairyNZ in programmes and operational costs to deliver on our strategy.

Our Board, made up of five farmer-elected and three independent directors, approves how DairyNZ invests the levy money each year. The annual plan is informed and aligned to the DairyNZ Strategy.

DairyNZ is subject to an annual external financial audit of its financial statements. KPMG’s audit report is included in the annual report – see 2024 annual report here.

The Board are also responsible for governing management’s achievement and performance against the strategy. DairyNZ is committed to lifting the transparency of levy investment and ROI.

During 2020 all dairy farmers who paid a levy on milksolids had the opportunity to vote on whether a levy on milksolids is continued.

The 2020 levy results:

• 67% turnout (by milksolids)
• 74% yes vote (by milksolids)
• 69% yes vote by eligible voters (single entities have one vote irrespective of size)
• 6,700 total votes received (57% of ‘eligible’ voters)

We will continue to deliver the best research and on-farm tools to support and work with you on local farmer-led projects. Progressing a positive future for New Zealand dairy farming is the core purpose of the DairyNZ Board and staff and we are looking forward to continuing our work.

Since its inception, the milksolids levy has supported many profitability and sustainability gains for individual farmers and the wider sector, including:

• New fertility breeding values in the Breeding Worth index to support healthier, more productive herds.
• Proof of function of forages to reduce nitrogen leaching and extension across regions with limits in place.
• Science-based advocacy which has resulted in immeasurable gains by securing practical policy including split gas approach, agriculture out of the ETS, freshwater regulation pauses and reworks, methane targets reviewed.
• More specifically, our long-term research has shown precision use of supplements can result in more milksolids or less bought-in feed giving $300-$1000/ha of extra profit. We have the Supplement Calculator to support this and work at regional sites we invest in.
• The Econ Tracker tool to help farmers assess financial performance and market trends to position well for the future.
• DairyBase’s benchmarking insights which allow farmers to test their farm against the performance of others locally.

Find out more on the history of your levy investment web page.