DairyNZ: Dairy Sector Must Push Beyond Productivity Plateau
The dairy industry cannot rest on its laurels despite providing one in every four export dollars earned by the country, says DairyNZ chief executive Campbell Parker.
Agriculture remains the backbone of New Zealand's economy and the dairy sector is the biggest earner in the sector.
In the year to 30 Junee 2025, New Zealand exported a record $27.15 billion of dairy products.
Dairy now generates more than one in every four dollars of New Zealand's foreign exchange receipts from goods and services exports and employs over 55,000 people.
DairyNZ says there's a need for continued investment in the future resilience of the dairy sector, continuing to push productivity, efficiency, and environmental outcomes.
The worrying thing is that since around 2015, the dairy sector has reached a productivity plateau.
That's why Responsible Dairy, an initiative announced at Fieldays recently, is crucial.
In total, the programme funding is $45.85m over seven years.
$18.34m will come directly from the Ministry for Primary Industries Primary Sector Growth Fund, up to $19.73m via the existing DairyNZ levy, and the remainder from in-kind or cash contributions.
Responsible Dairy will "accelerate innovation, scale up adoption, and efficiently deliver environmental and productivity gains across the dairy sector".
It is expected to speed up the rate at which the sector adopts transformative technologies, getting them into active use years earlier than what might otherwise be the case to keep New Zealand dairy globally competitive.
By 2050, the programme is expected to deliver about 20% growth in milksolids from existing farms and land use change and 20% reduction in nitrogen leaching per hectare.
On top of that, sector profitability will lift 13%.
Dairy is the jewel in New Zealand agriculture's crown.
To remain so, we must future-proof our farming practices. Responsible Dairy will do just that.
