Dairy sector profit still on the table, but margin gap tightens
DairyNZ’s latest Econ Tracker update shows most farms will still finish the season in a positive position, although the gap has narrowed compared with early season expectations.
It doesn’t mean that we’ll always agree – but it does mean that we’re willing to have robust and respectful conversations regardless of what side of the coin we are on. What matters is that we’re willing to sit down, have the tough conversations, and keep showing up.
That’s why I’m proud of the work Labour has been doing to keep those conversations going. At the recent Farmers Forum, I joined many of my Labour colleagues, along with representatives from DairyNZ, Beef + Lamb, Rural Women NZ, Horticulture NZ, IrrigationNZ and Federated Farmers. It’s not easy to get everyone in the same room - or out on the same farm - but it shows we’re serious about building trust and understanding.
We covered a lot of ground: pest control, local government, gene technology, environmental standards, and backing our farmers. One key discussion was the proposed shift from traditional resource consents to risk-based, certified farm plans. There’s strong support for cutting red tape, but we can’t lose sight of our long-term goals like swimmable rivers. The right balance means smart regulation.
There’s more to do. We need to keep talking about rural health, land-use change, job creation, better connectivity - including internet and postal services - rural disaster resilience, the cost of living, and how to support rural businesses. These issues go right to the heart of whether farmers can succeed, and whether rural communities can thrive.
We have a strong history of backing rural New Zealand. We signed game-changing free trade deals with China, the United Kingdom and the European Union – boosting exports, and opening up new markets for dairy, meat, and horticulture. We tackled Mycoplasma bovis head-on. We launched a Rural Health Strategy. And we worked with farmers to support innovation and protect our reputation for high-quality, sustainable produce.
The progress is under threat. The current Government has slashed research funding - cutting investment in sustainable land use and emissions research, and is winding down Predator Free NZ.
We’ll be at Fieldays again this year at our Labour Stall, and I’m looking forward to more of those good conversations. A strong future for rural New Zealand is something we all have a stake in, and we can achieve it together.
Jo Luxton is Labour spokesperson for agriculture.
