DairyNZ strengthens financial position, increases future investment

DairyNZ has reported an improved financial position in its 2025/26 Annual Results, including an operating surplus of $18.1 million, which will support increased investment in science, research, digital tools and on-farm extension.

The result was supported by a 4.5% increase in New Zealand milksolids during 2025/26 and the increased levy rate of 4.5 cents per kgMS, which took effect from 1 June 2025.

DairyNZ Chair Tracy Brown said the improved position reflected a strong season for dairy farmers, prudent financial management and a deliberate decision to rebuild DairyNZ’s cash reserves to an appropriate level.

“The past season was a standout, with DairyNZ’s production data showing New Zealand milksolids passing the two billion kgMS mark for the first time. That helped the dairy sector generate a record $28.6 billion in export earnings for New Zealand,” says Tracy.

“Over the past two years, we have deliberately rebuilt DairyNZ’s cash reserves to sustainable levels. Financial discipline, increased milk production and the new levy rate have all contributed to that result.”

“We have delivered on that commitment while continuing to invest in the science, tools and programmes that help farmers improve productivity, strengthen farm systems and compete through sustainability,” she says.

“DairyNZ does not carry debt, so maintaining appropriate reserves is important to fund major capital investment and provide financial resilience over the long term,” says Tracy.

DairyNZ Chief Executive Campbell Parker said the stronger financial position will help fund a larger capital programme in 2026/27 as well as supporting greater collaboration and investment across the sector.

“Our stronger balance sheet creates greater flexibility for future investment while maintaining the financial resilience expected by levy-paying farmers,” says Campbell.

“It also strengthens our ability to work alongside farmers, sector partners and government on major programmes that deliver practical outcomes for the sector.”

“This will help fund a planned $9.1 million capital programme in 2026/27, including upgrades to research farm infrastructure at Scott Farm and Lye Farm, improvements to DairyBase, delivery of the OneBW genetics programme, and continued investment in digital platforms that support farmers,” says Campbell.

Looking ahead to 2026/27, DairyNZ expects levy income to remain broadly consistent with the previous year, while recognising seasonal conditions may affect milk production and levy revenue.

DairyNZ expects expenditure to increase as it completes new research, science and extension initiatives, and as major collaborative programmes such as Responsible Dairy, Resilient Pastures and Dairy Beef Opportunities ramp up delivery.

“New Zealand dairy's fundamentals remain strong, but farmers continue to face uncertainty from global markets, rising costs and climatic variability,” says Campbell.

“Our role is to ensure farmers have access to the science, information and practical support they need to remain productive, profitable and resilient.”

Media contact
Jacob Quinn
Corporate Communications and Media Manager
p: 027 716 4197
e: jacob.quinn@dairynz.co.nz