That's the view of George Dodson, the 2024 FMG Young Farmer of the Year and the founder of the Canterbury Young Dairy Farmers Leaders Network.

He was a special guest speaker at the recent Animal Health and Plant Association conference in Wellington, where he talked about his insights as a young up-and-coming dairy farmer.

George Dodson is a partner in a 50/50 share milking operation, along with his father and cousin. It milks 400 cows on a property at Leeston in Canterbury. As soon as he left school, Dodson began his farming career and by 20 was already managing a dairy farm. He has a great passion for the sector and in a relatively short time has emerged as leader with some valuable insights into dairy farming.

He says dairy farming has always been a low-cost business and it’s his intention to keep it that way.

“It’s just about managing production verses profitably. Obviously, costs are going to be tied to your production, so you will want to get as much production as you can to dilute your costs, but not for the sake of going out and spending money. It is just about being smart about what we put in our system,” he says.

Labour he says is a big cost and it’s hard in NZ because dairy farmers are very reliant on migrant labour. Dodson says the aim of his family is to run a low labour operation so that it can be run by him and his father, or him and his cousin or siblings. He says they want to get to a 600-cow farm and be able to ideally run it with just two people.

One of the pathways to this is applying innovation and technology.

“We are putting on Halter collars in September; that will make a big difference to our farm system. It will enable us to run two herds of cows, which means that we should get better performance out of our animals. As well, we are utilising a new fertiliser spreader and building a new cow shed. This will allow us to just have one person to milk the cows and this, and all the innovations, will drive efficiency and reduce labour,” he says.

A focus on management skills and keeping them up to date is another area identified by Dodson. He says embracing innovation and technology and such things as new pasture species are all part of a tool kit that can create a more profitable business.

“I think a lot of those sustainability targets are really well linked to financial and production efficiencies on the farms. For example, if you think you are losing a heap of nitrogen on your farm you are actually losing a heap of money,” he says.

Dodson says farmers should always want to do the best for the land because in the long term it’s the land that looks after them.

Final results from the farmlet trial at Lincoln University Research Dairy Farm showed annual nitrate leaching was reduced by an average of 33% from 18 kg/ha/year to 12 kg/ha/year in perennial ryegrass-white clover pastures containing an average of 17% plantain dry matter, compared with pastures without plantain.

The Lincoln trial, part of DairyNZ's Plantain Potency and Practice programme, compared nitrogen leaching and production between farmlets with perennial ryegrass and white clover pastures sown with, or without, Ecotain plantain.

The findings support those reported from the programme's grazing trial at Massey University, several smaller component studies, and the aligned Low N Farmlet Trial, also at Lincoln University, that stacks plantain with other nitrogen mitigation options.

DairyNZ senior project manager Kate Fransen says milk production remained consistent across both treatments. Herbage production and silage use were also similar between treatments.

"The findings demonstrate that plantain can deliver environmental benefits without compromising farm performance," says Fransen.

Fransen says the nitrate leaching reductions achieved at Lincoln are more than double those predicted by current models which only account for the effect of plantain on reducing urinary nitrogen.

"The high-water content of plantain dilutes the concentration of cow urine, and the nutritional makeup of plantain also causes more nitrogen to be diverted to faeces and milk, and less into urine.

"We are now gaining a better understanding of the effects of plantain on drainage and nitrogen cycling in soil which result in additional reductions in nitrogen leaching.”

The programme aims to have these additional effects of plantain reflected in models such as Overseer by 2028.

One of the key findings was that relatively low levels of plantain still delivered good reductions in nitrogen losses.

“At the Lincoln site, we achieved consistent reductions in nitrate leaching over four years, despite plantain content plateauing to 10-15% in the final years of the trial,” says Fransen.

The programme has also worked with more than 30 partner farmers in N-sensitive catchments. This has provided practical insights on using plantain, and supported understanding of the wider farm systems implications and potential catchment-scale impacts through benchmarking and modelling.

Plantain is a short-lived perennial and mixed swards require ongoing maintenance through oversowing or undersowing.

Partner farmers have successfully maintained 10–15% plantain content by including Ecotain in new pasture mixes and broadcasting seed annually, at an estimated cost of $46/ha per year.

DairyNZ modelling indicates that achieving similar reductions in nitrogen leaching without plantain would likely require substantial reductions in nitrogen fertiliser use, imported feed and stocking rates, or significant infrastructure investment, with greater impacts on farm profitability.

The benefits of plantain for reducing nitrogen leaching are recognised in regulatory frameworks in Canterbury, Southland, Waikato, Bay of Plenty and Horizons.

Ecotain plantain has been used in all programme trials where leaching has been measured and is proven to be effective at farm scale.

The Plantain Potency and Practice programme is a collaborative research initiative that commenced in 2021 led by DairyNZ and funded by the Ministry for Primary Industries through the Sustainable Food and Fibre Futures fund (now Primary Sector Growth Fund), DairyNZ, PGG Wrightson Seeds and Fonterra.

Research is delivered in partnership with Lincoln University, Massey University, Lincoln Agritech and the Bioeconomy Science Institute.

First opened in 2015, the Chengdu Application Centre has moved to a more central location in the city's Jinjiang District. With the upgraded facilities, Fonterra's technical experts, chefs and customers are now better empowered to develop, test and showcase food and beverage products.

Fonterra chief executive of Greater China, Teh-han Chow, says the investment builds on Fonterra's nearly half-century presence in China and reflects the co-op's focus on staying close to customers in a fast-moving market.

"China's foodservice sector is evolving quickly, and our customers are looking for dairy solutions that help them respond to changing consumer tastes with speed, quality and confidence.

"Through our upgraded centre, we can co-create more closely with customers, develop more relevant applications, and bring the benefits of premium New Zealand grass-fed dairy to more Chinese consumers across Southwest China and beyond.

"By bringing our technical expertise closer to customers in Chengdu, we can better understand local needs, move faster on new ideas and help turn those insights into practical foodservice solutions."

New modern kitchens will allow customers to see how Fonterra products perform in applications such as cakes and beverages, supported by seminars, demonstrations and virtual learning sessions led by Anchor Food Professionals advisory chefs.

Chengdu, the megacity capital of Sichuan province, is known for its spicy food and teahouse culture. In 2010, it became the first city in Asia to be named a UNESCO City of Gastronomy, making it a natural place for Fonterra to expand its local investment.

Alongside sites in Beijing, Shanghai, Guangzhou, Shenzen and Wuhan, Chengdu is one of six Fonterra application centres in China. This network helps Fonterra work closely with customers to understand changing food trends, support innovation, grow demand for New Zealand milk and deliver more value for farmer shareholders.

Since paying shareholders a rebate of $20/tonne for the year ending May 31, 2022, the co-operative had been facing financial headwinds - caused mostly by plunging volumes.

But that's set to change. For the financial year ending May 31, 2026, Ravensdown is reporting a $50 million profit before tax, backed by a solid lift in fertiliser demand.

Fully paid shareholders will receive a cash rebate totalling $14 million or $15/tonne. Partly paid shareholders will this year receive their full rebate in the form of shares.

Revenue for the year topped $971m, 20% up on the previous year.

After several years of subdued fertiliser demand, improving agricultural returns, particularly for sheep and beef farmers, have supported a recovery in nutrient applications and sales volumes.

Overall fertiliser sales volumes were up 8% with over 1 million tonnes sold, compared to 962,000 tonnes sold in the previous financial year.

Ravensdown chief executive Garry Diack says the co-op last broke the 1m tonne sales mark in the 21/22 financial year. 

He told Dairy News that it was great to pay a rebate to shareholders after three years.

Diack says Ravensdown "operates inside the farmgate" of shareholders.

"We are part of their cost structure. If they do well, then we do well."

He says the jump in sales volumes was matched with better efficiency within the business, enabling the conditions to pay a rebate.

Over the past year, the co-op delivered a number of targeted projects to drive performance including significant investment in manufacturing commitment, freight optimisation, improved data decision support, and automation supported by AI.

"This result reflects the discipline we've applied across the business to become a more efficient, resilient co-operative," Diack says.

"By improving our operations, we've strengthened our financial performance while continuing to invest in the products, services and expertise our shareholders rely on."

Like other importers, Ravensdown continues to face shipping disruptions and be impacted by global oil price fluctuations.

But this financial performance demonstrated the value of the co-operative to deliver on its purpose in an increasingly uncertain global environment, according to Diack.

"International fertiliser markets remain heavily influenced by geopolitical events. Conflict in the Middle East, the ongoing war in Ukraine and broader supply chain disruptions continue to create volatility in both product availability and pricing."

Ravensdown's longstanding relationships with global suppliers and joint venture partnership with Ravensdown Shipping Services are valuable strategic assets that have proven their worth to the business and shareholders over the last year.

"Our supplier partnerships have been built over decades," he says.

Part of the new science curriculum, which comes into effect in 2028, includes a focus on soil, plant and animal science. To that end Massey University, in association with the Horticulture and Agriculture Teachers Association (HATA), have been busy designing courses that will upskill teachers to cope with the new requirements of the curriculum.

Leading the project to design these courses at Massey is Professor Chris Anderson, who says an exciting part of the reforms is that ag and hort will be taught to students in year 11 and this will continue through years 12 and 13.

In recent years there has been increasing demand by students for secondary schools to offer agriculture and horticulture, but one issue has been having teachers with the appropriate knowledge and skills to teach these subjects.

For some time, Massey University and HATA have been developing courses for teachers and some have already been run and the aim, says Anderson, is to have a suite of seven different ones on offer.

"We have already been running the soil science course and now we have two plant science and two hort crop courses, which will be offered for the first time. Then we have two animal science courses that we will have ready for next term, and finally an ag business course that will flesh things out," he says.

Anderson says the courses are introductory and are based on the 100-university level. He says they are targeted for teachers so they can get some robust, fit-for-purpose development to help them provide a better teaching experience. The courses are designed to be engaging and include some short videos but don't contain heavy technical detail.

"It's about providing the appropriate level of information the teachers would need to make them more confident when they get in front of the students, and then they are hopefully going to incentivise and excite the kids.

"In the long term, this is about making kids understand that ag is a cool subject and also increase their capability when they come to the university," he says.

All the individual courses are being delivered online over a ten-week period with participants expected to put in about five hours work per week and fifty hours over the ten weeks.

"It has been one of the greatest privileges of my life to serve Tatua's supplier shareholders and to work alongside exceptional directors, management, staff, customers, and industry partners over the past 30 years," says Allen.

He steps down at Tatua's annual meeting in December, having served as chair for 23 years and a board member for 30 years.

Allen said one of the most important lessons from his career was that long-term success ultimately comes from people.

"When people understand the purpose, feel trusted and are encouraged to contribute, exceptional performance becomes the natural outcome.

"Whatever Tatua has achieved has always been the result of talented people working together with a shared purpose."

Based in Tatuanui, near Morrinsville, Tatua is one of only three dairy co-ops in the country - Fonterra and NZ Dairy Goat Co-op being the other two. During the 2001 mega-merger that formed Fonterra, Tatua shareholders voted to remain independent.

Allen joined the Tatua board in 1996, became deputy chair in 1997, and was appointed chair in 2003 following the retirement of Sir Alan Frampton.

During his tenure, he helped guide the co-operative through one of the most significant periods in New Zealand dairy industry history, including the lead-up to dairy sector deregulation.

Reflecting on his retirement, Allen says he leaves Tatua with a deep sense of gratitude for the people who have contributed to the co-operative's success.

Allen will be succeeded by director Mark Dewdney.

Robinson took on the role when the company's inaugural chief executive officer, Colin Glass, stepped away at the end of May.

He was formerly the Dairy Holdings chief operating officer, a role created eight years ago to help grow the business, focus on farm performance and provide for succession.

From its beginnings with about 30 farms in 2001, the Ashburton-headquartered company now has about 90 farms on its books, 69 of them dairy production and the rest support blocks.

Robinson said that as COO, he initially concentrated on the dairy farms before changes in the executive team saw him pivoting to add the dairy support farms as well.

"It's a big part of our business because we're fully self-contained," he told Dairy News.

"We don't go out to the market for any grazing for our young stock, or for our wintering."

Robinson said the business was very disciplined around a farming system that hasn't changed in a long time. He added that the management was fortunate to have a group of shareholders that was very stable and took a long-term view.

"We follow the pasture curve and the only feed we put on is to get our pasture curve back to where we want it.

"It's a little bit different to many farmers who are bringing in purchased feed to make milk. We're bringing it in to make sure we've got enough grass going forward."

The self-contained model helped Dairy Holdings remain unscathed by the Mycoplasma bovis epidemic and is now helping insulate the company from external price shocks.

Robinson points out that many dairy farms in New Zealand buy in significant amounts of feed - and those input prices "have really jumped up in the last six months".

Robinson says it keeps things simple.

"If we were running a system that was using more purchased feed, it would create more decisions to make during the season."

He said it was a matter of matching pasture supply with pasture demand and stocking rates through the year. Culls are removed early, to ensure enough grass to feed the pregnant cows so they're in good condition by the end of May, and the farm has enough grass for calving in August.

"We're never second guessing how we are going to run the farms.

"All we're trying to do is the same thing we did the prior year, just slightly better."

Robinson adds that the sector has an issue with pasture productivity, with pasture harvested by stock on many farms diminishing, and increasing amounts of purchased feed being used.

"This is and will erode New Zealand's competitive advantage in the global market."

Robinson says Dairy Holdings has been performing well and growing, and there will be no wholesale changes with him at the helm.

The business was not just about milk but was increasingly a people business, with about 450 people now employed, either directly or through its various contractors and sharemilkers.

Growing cows and grass is not easy but finding and retaining good people make it that much easier, he says.

Farm Ownership Goals

Dairy Holdings currently has eight sharemilkers, 57 contract milkers and 19 farm managers (including dairy and dairy support) as part of the team. It encourages its people to build their own herds and move up through the system, with any direct company employees in areas such as finance and health and safety also able to own animals.

Blair Robinson says Dairy Holdings was very proud of the number of couples - now approaching 60 - who had come through its system and gone on to buy their own farms.

"Three of our sharemilkers bought their own farms last season, which is quite incredible given land prices in Canterbury have jumped up a bit in the last 24 months."

Robinson himself is an equal partner with Mick and Kirsten O'Connor and one other in a 278ha, 1000-cow farm at Burnham. He says the farm has very good soils and irrigation, and benchmarking with others shows the farm has "really good numbers".

But he is not hands-on, except when he comes at weekends to tackle only the "most manual" tasks.

"I just get out of Mick and Kirsten's way. They're the real farmers."

Fonterra Supplier

Dairy Holdings has recently divested itself of the remaining three Westland Milk Products supplying farms in the Spring Junction area, to consolidate operations to Canterbury, Waitaki and Southland, supplying only Fonterra.

Blair Robinson says these are the areas where the company sees further opportunities for growth.

It has also beeen selective in buying farms where irrigation costs are likely to remain low.

Colin, his wife Janis, son Nick and partner Alice took over a dairy farm right next to their established arable operation in June and last week a Fonterra tanker arrived to pick up the first milk from their new dairy farm.

The 600-cow operation is based on a 260ha effective platform, a mere fence away from where they grow wheat, grass seed and turnips.

The Hursts already have a 700ha property of which 450ha is cropped and the remainder is devoted to grazing their own and other farmers' cattle.

Colin Hurst says the purchase of the dairy farm was part of the family's succession planning and will enable son Nick and partner Alice to have a stake in the overall business.

He says he grew up looking at the dairy farm and is aware of challenges ahead.

"It's right next to the sea, so there are quite a few challenges with water, and the soils are heavy which present challenges when we get heavy rains. There are also a couple of waterways that run through the farm," he told Dairy News.

Hurst says while his son and partner are 50/50 sharemilkers on the new farm, they have employed a contract milker which enables Nick to continue to be involved in the family's arable property.

He says there is potential to increase production on the new dairy and integrate in with the arable side of the business.

"On our arable farm, we have always grazed cattle and dairy cows and at one stage even sheep. But now we can graze the cows from our dairy farm on the arable land, and it also means we will be able to rear calves, and we know that we will have a market for our grain. So, there are now significant synergies for both sides of the operation," he says.

Hurst says he's always been keen to have young people on the farm, and this latest move is all about succession planning and keeping the family business going.

Hurst took over as Federated Farmers president in June this year after serving three years as vice president.

Allen joined the Tatua board in 1996 and was appointed deputy chair in 1997. He became chair in 2003, succeeding Sir Alan Frampton, and has held the position for more than two decades.

His time on the board spanned major shifts in the New Zealand dairy sector, including the lead-up to dairy sector deregulation.

During his tenure, Allen worked with three chief executives - Dr Michael Matthews, Paul McGilvary, and Brendhan Greaney - as the co-operative pursued a strategy centred on value-added innovation, disciplined investment and long-term growth.

In a statement, Allen says he is grateful to the people who contributed to the co-operative over the past three decades.

"It has been one of the greatest privileges of my life to serve Tatua's supplier shareholders and to work alongside exceptional directors, management, staff, customers, and industry partners over the past 30 years," he says.

He says the clearest lesson from his time as chair is that long-term performance is driven by people.

"When people understand the purpose, feel trusted and are encouraged to contribute, exceptional performance becomes the natural outcome. Whatever Tatua has achieved has always been the result of talented people working together with a shared purpose."

The Tatua has named Mark Dewdney, a current director, as Allen's successor.

The company says he has a longstanding connection to the co-operative and brings governance, executive leadership, agribusiness and farming experience, including a number of chief executive and senior executive roles across agricultural and horticultural businesses, alongside his own farming interests.

Allen says he is confident in the incoming leadership.

"Leadership carries a responsibility not only to serve well, but to know when to pass the baton. Mark is an experienced Chair and director, and I am pleased to see Tatua's next generation of leadership take the co-operative forward," he says.

Allen also acknowledged Tatua's shareholders, staff, customers, industry colleagues, Iwi, government representatives, community partners and his family, saying the co-operative's success had been built on trust and strong relationships.

"Trust is earned, never assumed, and I will always be deeply grateful for the trust placed in me. Tatua was built by everyday good people, committed to tomorrow and co-operative to the core. It has been the greatest privilege of my life to have served alongside them."

Allen's retirement takes effect at Tatua's Annual General Meeting on 3 December 2026.

Greg Delaney is acting in the role and will work with the Southern Dairy Hub three days a week through to December.

SDH board chair Simon Flood says Delaney brings extensive leadership experience across the agribusiness and rural sectors, with a proven track record in operational excellence and organisational change.

"Greg has held senior leadership roles across some of New Zealand's largest agribusinesses. His collaborative background in strategy, operations and business improvement make him an excellent fit to lead the Hub during this next phase."

He thanked Andrea Dixon for her leadership over the past three years and for her recent consultancy to the Hub which has ensured that there is smooth transition for the team.

That's how Waikato Federated Farmers chair Matthew Zonderop describes a report that confirms New Zealand remains the world's largest single-country dairy exporter.

According to Rabobank's 2026 World Dairy Map, New Zealand accounted for 22.1% of world dairy exports in 2025.

"This is a genuinely positive story for New Zealand," Zonderop told Dairy News.

"Remaining the world's largest single-country dairy exporter, accounting for 22.1% of global dairy exports in 2025, is a significant achievement.

"It reflects the sustained effort of New Zealand's dairy farmers, sharemilkers, farm staff, rural businesses, processors, exporters, boards and senior management teams, including those at Fonterra."

The benefits extend well beyond the farm gate, says Zonderop.

When the dairy sector earns export income, that money flows through rural communities, service businesses, transport operators, manufacturers and the wider New Zealand economy.

"Dairy remains one of the country's most important economic engines," he says.

The new map and accompanying report - which examine key trends and trade flows in global dairy for the period 2017 to 2025 - show global dairy trade grew by 11% across this time frame, increasing from around 9.1 billion kg in liquid milk equivalents (LME) in 2017 to 101.2 billion kg in 2025.

Rabobank senior agricultural analyst Emma Higgins said the map and report highlight New Zealand's consistent contribution to world dairy exports across this period.

"If we look back across the last eight years, New Zealand's contribution to global dairy exports has held remarkably steady, oscillating between a high of 23 billion kg (2019 & 2021) and a low of 21 billion kg (2017, 2018 & 2022). And since 2023, New Zealand's contribution has held constant at 22 billion kg," she said.

“With overall dairy trade having increased, New Zealand’s market share has dropped slightly, but it is still contributing well over a fifth of all global dairy exports.”

The report says the EU bloc continues to be the world’s largest dairy exporter overall – accounting for 27% of world dairy exports in 2025 – however their export share is also slowly eroding.

“Back in 2017, the EU was responsible for closer to 30% of all global dairy exports, but since then we’ve seen their overall share driven lower by falling exports into China.” Higgins said.

A major contributor to this fall is China’s liquid milk market, where imports have declined significantly in recent years.

European exporters have borne much of that impact, while New Zealand has maintained stable export volumes and has become China’s largest supplier of imported liquid milk and cream since 2024.

The report says the US – the world’s next largest global dairy exporter behind the EU and New Zealand – has grown dairy exports across recent years.

Announced at a function in late June recognising those who "went the extra mile" for farming families and rural communities, the award went to Green for successfully fighting a move to centralise rural Canterbury policing which would have seen police personnel withdrawn from a number of small towns.

"Despite being in the middle of calving, Bex fronted our major advocacy campaign with real tenacity, often in the face of considerable pushback," Federated Farmers board member Mark Hooper said at the awards ceremony.

Green and her husband Blair farm a few kilometres west of Culverden in North Canterbury - a prominent dairying district with about 90 dairy farms. With three children aged between 13 and seven (the oldest now at boarding school in Christchurch) it is important to her that Culverden is a good town with a good school and a safe and supportive community.

"Luckily enough for me, I'm quite good friends with the local cops," Green told Dairy News.

"They are involved in the community like I am, my daughter is friends with one of their daughters.

"So naturally, when I heard that they were going to be taken from us, I was very upset."

Green used her position to mount community meetings and rally submissions against the restructure, which was eventually withdrawn when police management realised it would not get the community buy-in it needed.

Green explained that having local police who were themselves part of the community is what gives a town security. One of them is on the school board, one a member of a multisport club which the Greens have established. The police are visible on the road and in the community, often seen in uniform at various events.

"It's feeling safe because you know they've got your back," she said.

"I can just message them and say 'I've seen this happen. Is everything all right?'

"I don't have to go through an 0800 number or something to talk to them."

First generation dairy farmers, Bex and her husband were brought up and lived in Northland until about 10 years ago, when they moved to the South Island in search of better dairy farming opportunities.

"It was really hard to grow in the industry up there, in terms of getting to farm ownership or even getting to management.

"They're all small dairy farms up in Northland and they don't need a whole lot of workers, and they don't need management because they are on-the-farm owners and run them themselves.

"So we moved down here for the contract milking, and the share milking opportunities, and the scale, really."

The couple did a year on a large farm at Oxford, then five years in Cheviot, when they launched their own business as contract milkers.

The Greens have now been on their current farm, on the western edge of the Culverden basin, for three years. They are contract milking for the farm's owning syndicate, but also own part of the herd, and have shares in the farm as well.

"Complicated, but very grateful for the opportunity of the farm owners letting us build equity in different ways," said Green.

The farm runs 1000 milking cows on 300 hectares purely dairy platform with all winter grazing off-farm.

The Greens are both keen multisport athletes, Bex having two Coast-to-Coast first placings to her credit - in 2024 when she cycled and Blair kayaked in the winning mixed team, and in 2025 when she cycled in the winning all-women's team.

Blair had previously competed as an individual in the one-day event and did so again this year. Next year they plan to compete as a team of two, doing two legs each.

Realising there were a number of multisport athletes in the district, among them other dairy farmers, they have formed a multisport club, with Bex the current president. She is also president of the local netball club.

Working for Communities

Bex Green has always stood up to be involved, having been a regional leader of the Dairy Women's Network for three years.

"I was a finalist for the Regional Leader of the Year award twice - and didn't win it," she grins.

But by then she had joined Federated Farmers and felt it was time to step away from the DWN. In Federated Farmers, he path has closely followed that of Karl Dean, now national Dairy Chair, but formerly North Canterbury provincial president and also a former Advocate of the Year.

She says issues now on the horizon include local government reform, and reform of the Resource Management Act.

Green said North Canterbury Federated Farmers has recently nutted out a position on local government reform - preferring a three-council solution with northern and southern rural councils rather than a single council for all of Canterbury, or one rural and one Christchurch metro council.

"Having one rural Canterbury that spreads all the way down is a quite a large area to cover. But we definitely think that being separate from Christchurch or Metro is preferred, for sure.

"I'm always going to advocate for what's best for the communities that I live in and that I represent."

Open Country Dairy says any review of the Dairy Industry Restructuring Act (DIRA) must ensure the outcomes are in the best interests of all stakeholders.

The DIRA was enacted to promote the efficient operation of New Zealand dairy markets and ensure fair competition for milk supply and supply of consumer dairy products.

Under the DIRA, the Minister of Agriculture, Todd McClay, is required to ask the Ministry for Primary Industries (MPI) to review provisions around open entry and exit provisions, base milk price settings, and the supply of regulated milk to other processors.

MPI published the terms of reference two months ago and initial submissions were made last month.

McClay must table the final report in Parliament by June 1, 2027.

Former Agriculture Minister and Labour MP Damien O'Connor told Dairy News that he expects the Government to delay the DIRA review until after the general election.

"It will be interesting to see how the coalition Government handles this DIRA review.

"I suspect they will kick it beyond the election, given the very confused signals they give to stakeholders across the dairy sector."

In its submission, Open Country Dairy, owned by the Talley's Group, called for a more critical lens to be applied, to ensure the outcomes are in the best interests of all stakeholders.

"DIRA was put in place 25 years ago to manage the significant risks that came with creating a dairy monopoly," says Open Country chief executive Mark de Lautour.

"Each time the Government has reviewed this key pro-competition framework, the mechanisms designed to protect farmers, consumers and the industry at large have been weakened.

"While DIRA has enabled incremental shifts toward a workable competitive market, this should not lead to complacency and further weakening of DIRA," de Lautour says.

It also notes that Fonterra has divested its consumer business, thus exited the market for the wholesale supply of consumer dairy products in New Zealand.

But Open Country claims that Fonterra maintains a nearly 80% market share - its share having declined by much less than 1% a year on average since its creation by the government in 2001.

In several important dairy regions, Fonterra remains farmers' only choice of processor. Other than Open Country, none of Fonterra's competitors holds more than a 4% market share, de Lautour notes.

He says that it is wrong for the DIRA to be referred to as red tape. This fundamentally misrepresents the importance of DIRA, given Fonterra was created as a monopoly by the government and continues to hold an extraordinarily dominant position, he says.

Fonterra is not commenting on the DIRA review.

The programme marks a milestone for New Zealand's beef-on-dairy scene, bringing together two major players to create a premium offering based on high-quality genetics.

Designed to deliver value across the supply chain, it's underpinned by a key customer - FMG Global, strategic sourcing partner for McDonald's - looking to support industry-led efforts to capture the opportunity presented by non-replacement dairy calves.

The programme offers a list of high-performance beef sires selected for easy calving, moderate gestation length and high-growth beef-on-dairy calves - ideal for use in dairy cows.

Using these sires for targeted non-replacement matings also allows farmers to breed herd replacements from their best cows, driving faster genetic gain, says Anne Douglas, group director of Fonterra Farm Source.

"This initiative gives farmers a practical, evidence-based sire list that helps remove uncertainty and makes it much simpler to capture the beef-on-dairy opportunity," she says.

"As farmers finalise their mating plans for the season ahead, we'd encourage them to explore the opportunities available through this programme and consider where premium beef-on-dairy could fit within their breeding strategy."

Integrated beef-on-dairy value chains are becoming more established internationally, says Greg McSkimming, head of agribusiness at Silver Fern Farms.

"The biggest opportunity for New Zealand is creating strong alignment across the supply chain, so decisions on farm connect more directly to customer demand and deliver consistency at scale," he says.

“Beef-on-dairy is one of the most practical ways dairy farmers can create additional value from non-replacement calves. The key is producing animals the rest of the value chain is actively seeking. When genetics, rearing and finishing are better aligned, it improves predictability and gives farmers more confidence they’re breeding calves that will deliver what the market wants.”

The programme’s approach is about aligning genetics and on-farm decisions with smarter supply chain practices, says Connor FitzGerald, chief commercial officer at FMG Global.

“Small adjustments in decision-making around genetics, combined with improved supply chain processes can deliver outcomes that work for the dairy farmer, the calfrearer, the backgrounder and/or finisher, as well as the meat processor,” he says.

“It really is a scenario whereby, with the right collaboration, everyone wins.”

Sire List

The programme's recommended sires are top-performing beef bulls selected to work within dairy systems and produce calves the beef supply chain is actively seeking.

The chosen bulls meet four practical requirements:

• Easy calving - to protect dairy cow performance and reduce risk at calving.
• Moderate gestation length - to ensure cows calve on time.
• Colour-marking - to aid in visual identification of calves.
• Growth potential - to provide value to rearers and finishers, locking in ongoing demand for calves.

Selection has been guided by the latest Beef + Lamb New Zealand tools and information, to ensure calves hit the mark for all parts of the supply chain.

The sires are available through LIC, CRV and GENEZ and are intended to be used strategically for non-replacement matings, helping farmers protect the pathway for high-performing dairy replacements.

Branded eartags will be available for Fonterra suppliers that use these sires to create a distinct line of calves within their herd; they won’t be available to farmers running the nominated bulls alongside other bulls of the same breed, ensuring tags go into the right calves. Beef finishers can use the tags as an indicator of growth potential and, if processed through Silver Fern Farms’ programme, earn a premium.

James Allen, chief executive of AgFirst told Dairy News that, broadly speaking, in the Waikato farmers grew and harvested an extra tonne of dry matter last year over the previous year.

He says it was a very good season, but points out that you'd be a brave person to expect this season to be the same.

Allen says supplementary feed reserves in the province are pretty good now.

"What we are saying to farmers though is to think about your feed requirements for the whole season and base it more on an average season, rather than what we had last season, and then try to make sure that you have the bulk of that supplement secured. It then comes down to thinking about marginal milk decisions later in the season," he says.

Allen says now is the time to maximise pasture quality and also cow intake to get to peak cow production. But again, he warns that leading into summer the math starts to change quite quickly.

Now he says it's about assessing the price of supplement and looking at the forecast milk price and looking to the future.

"What I am also saying is around pre-Christmas it's a case of reassessing about where you are at and looking at the soil moisture profile. That's because soil moisture at the 1st of December is a really good early warning indicator of whether or not there are problems on the horizon," he says.

Allen says it's about making those early decisions about whether more supplements may be required or maybe to cull early.

He says December 1 is a trigger date when farmers need a plan for making and executing some decisions early.

He says history tells us that the best way to deal with problems is to have a plan and make early decisions.

The El Nino Factor

Allen says he's not surprised to hear that Canterbury and other parts of the east coast of the South Island are in the early stages of drought.

Chris Brandolino, principal scientist forecasting and media at Earth Sciences NZ, says already there are some worrying signs that are related to El Nino occurring ion the South Island. 

He says some places in Canterbury are in what he describes as 'meteorological drought' and that there is a significant soil moisture deficit in many places.

Allen says he's heard that some farmers have been irrigating well into May and June - something he says is unheard of - and he agrees that east coast regions of both islands are high risk areas when it comes to drought.

He says he's aware that many parts of Canterbury have tight water restrictions and if the dry weather conditions and aquifers are not recharged, there is a problem.

In terms of El Nino, Allen says dairy farmers don't need to change what they are doing right now. 

He says, after all, most have made a decision how many cows they're going to carry through the winter and peak milk.

Milking on 260ha farm near Tirau, Nelis says reducing waste is always on his mind.

One opportunity he sees is around nitrogen input; limiting the amount of synthetic nitrogen he uses, reducing costs, especially as fertiliser prices sour.

His current project focuses on reducing nitrogen inputs by leveraging natural soil biology of his farm.

The farm is unique as it uses two cow sheds, one of which only milks the A2 heerd.

"We established the A2 herd a few years ago, which was a pretty straightforward process - we tested all the cows and had enough A1-free cows to use for one shed," he told Dairy News.

"At one stage I had done four years of organic dairy farming. It was clear that under the right conditions you could take some nitrogen out of the system without affecting pasture performance.

"I felt it was worth doing a trial to rely on the soil and plant biology more and started exploring different options for a project like that."

Nelis supplies Fonterra, which in turn has a long-term agreement to provide A1-free milk to the a2 Milk Company's Pokeno plant for production of a2 branded products.

Nelis is one of 27 farmers to have received funding from the a2 Milk Company.

The processor has pumped $800,000 into 27 sustainability projects across Australia and New Zealand through the 2026 a2 Farm Sustainability Fund.

It takes the company's total investment in on-farm sustainability initiatives to more than $3.7 million since the fund was established.

The project on Nelis' farm uses a package of BioN, a fertiliser replacement based on living soil biology, and Comcat, which is a root stimulant.

BioN introduces bacteria into the soil. The bacteria capture nitrogen from the air and convert it into nitrogen for pasture growth.

"We're running the project over a 50ha lot, with three applications between September and March," explains Nelis.

"We should have an initial feel for the result in pasture growth by about Christmas, and the hope is that there are savings in both time and cost.

"The opportunity for a grant under the a2 Milk fund helped us to take on the project. There's a risk in changing your system - financially and in performance - and funding like this gives you a chance to take it.

"It's also good for the industry because there are a lot of products out there in theory are good ideas and this sort of thing helps promote great initiatives."

Managing director and chief executive of the a2 Milk Company, David Bortolussi, says the projects reflected the growing focus among farmers on practical innovations that deliver both environmental and commercial benefits.

"Our farmers are finding new ways to improve productivity while reducing environmental impacts, and that's exactly the type of innovation this fund is designed to support.

"The projects funded this year demonstrate that sustainability and profitability can go hand in hand. They're helping build more resilient farming businesses while delivering measurable outcomes for the environment, animal welfare and local communities," says Bortolussi.

His operation has recently expanded, taking on additional land, alongside new investment in renewable energy and composting barns. This infrastructure has been designed to improve animal welfare and improve on-farm efficiency.

Driving past, few would know that Stevenson got his start with a little help from two men who died long before he was born.

Growing up on a farm in coastal Taranaki, Stevenson always had a connection to the land and a natural instinct for agriculture. He received a Bashford-Nicholls Scholarship three years running, in 2007, 2008 and 2009, while completing a Bachelor of Applied Science in Rural Valuation and Management at Massey University in Palmerston North. 

That financial support allowed him to focus on his studies and think seriously about the career he wanted to build.

After graduating, he went out and learned from the land itself, working across multiple regions of New Zealand, building relationships with farming families and rural businesses, understanding their operations from the inside.

From 2010 to 2016, he brought that ground-level knowledge into a financial context at National Bank, helping farming clients navigate the business side of agriculture.

Eventually, Taranaki called him home. Today he is building something lasting in Tikorangi with his wife Amy and their two children.

"You don't fully appreciate it at the time. You're just a student trying to get through. But that scholarship made a real difference. Everything I've built since, the farming, the relationships, coming home to Taranaki, it started there, studying in Palmy and having that support behind me."

Stevenson's story is one of many playing out across the region every year. And it all traces back to a decision made more than a century ago by two neighbouring farmers who simply loved their land.

Two Farmers, One Bequest

Claude William Nicholls and James Dawson Bashford were born in 1880, neighbours in rural South Taranaki, five kilometres apart. 

In an era when it was common practice to leave a farm to family, they each chose to do something different. They formed trusts so their land would keep giving long after they were gone, with the proceeds funding the next generation of agricultural and veterinary leaders in their region.

Last year, the Bashford-Nicholls Trust transferred $14 million in assets to Taranaki Foundation, marking the largest single transfer of trust assets in New Zealand's community foundation network.

The transfer more than doubled Taranaki Foundation's funds under management, from $13 million to $27 million, making it the third-largest community foundation in New Zealand. The funds are now invested locally through Craigs Investment Partners in Taranaki.

This year alone, the trust is supporting 66 undergraduate students, two masters students and four PhD candidates pursuing careers in agriculture and veterinary science. It also co-funds the PIVOT Award in partnership with Massey University.

"If you look at the original legacy, it was nearly 100 years ago," says Josh Hickford, chief executive of Taranaki Foundation.

"Our children, and their children, will still be telling this story. That's what we're here to protect and grow."

The decision, currently in its final draft form, will allow Lodestone to build its proposed Haldon Solar Farm in the Mackenzie District of Canterbury.

Gary Holden, managing director Lodestone, describes the decision – which follows six months of assessment from the Fast Track Approvals panel – as an important step in the development of the solar farm at Haldon Station.

“It’s exciting to see the Panel supporting new renewable and gives us the opportunity to continue to progress the other activities to get the project to shovel ready,” Holden told Dairy News.

“The robust process set an appropriately high standard for projects of this type and scale in the Mackenzie District,” he adds.

Once built, the solar farm will generate approximately 370 GWh of renewable electricity each year, which is enough to power 45,000 households.

Holden says the wider community will benefit both directly and indirectly from the project.

“During the construction of the solar farm there will be local employment opportunities from contractors working on the build to housing and feeding workers on site,” he says, adding that in the long term there will be operations and maintenance staff required to help maintain and operate the farm.

“The construction of the solar farm will also provide economic development opportunities in the region which don’t rely on water or result in any effluent being created.”

Holden describes it as a “clean, long-term sustainable option”.

Additionally, he says that having a more diverse mix of power generation options will help to moderate electricity prices in dry years.

“It can be said that utility scale solar farms provide ‘virtual rain’ which reduces New Zealand’s dry year risk,” Holden says.

“With solar generation highly correlated to hot summers, or long dry periods, this then enables water to be retained in the hydro lakes, and we use solar generated electricity instead,” he adds. “Thus, supported by and therefore supporting hydro systems.”

Paddy Boyd, Haldon Station managing director, says the project that from the outset, the owners of the station wanted to ensure that not only could renewable energy be produced on the land but that it could be done while protecting its unique landscape.

“We look forward to continuing to work alongside mana whenua, regulators and the community as the project progresses,” he says.

Cameron describes the Greens' policy as "completely out of touch with reality".

"Synthetic fertiliser has lifted millions out of poverty around the world over the last 50 or 60 years of its use," he told Dairy News.

"It has increased food production several-fold giving the farmers the necessary tools they need to be productive.

"The Greens' policy is a utopia that simply does not exist. Many countries have natural resources. Our greatest one is our ability to convert green grass into animal protein."

The Greens released their 'Drink Swim Fish' policy ahead of the upcoming election.

The party wants to tackle pollution before it reaches waterways. It proposes to phase out synthetic nitrogen fertiliser and take action to reduce stocking rates on a catchment basis to improve the health of rivers and drinking water quality.

But Cameron, who is retiring on health grounds after serving two terms as an ACT MP, says the Greens' policy would be a disaster for New Zealand.

"It will destroy property rights and productivity and production, ultimately making us a poor nation."

Another ACT MP, Andrew Hoggard, who milks cows in Manawatu, says farmers don't use fertiliser for "giggles".

"It's bloody expensive, but also veery important for growing crops and food."

Hoggard says less fertiliser means less production.

"If you reduce the supply of food, then the price will go up so, I'm not sure that's a brilliant idea for improving the cost of living."

Hoggard says reducing ag exports out of the country will slash export receipts.

"Farmers up and down the country are doing great work on protecting waterways.

"The way forward isn't one-size-fits-all, neither is more blunt rules from Wellington.

"But each farmer understanding the key risks on their farm, having mitigations in place, working with their neighbours on catchment plans.

"That's how we move forward and unlock our nation's potential," he says.

Claims are down from about 25,000 in 2020 to 16,666 last year.

Nelson says it shows that farmers, growers, contractors and rural teams are choosing safer ways of working because they know their land, their stock, their machinery and their people best.

"Farmers deserve real credit for this progress. They are the ones making the calls day by day, slowing down when the weather changes, setting jobs up properly, talking things through with staff and family and finding practical fixes that work in the real world. That is why the drop in claims is encouraging.

"However, no one in rural New Zealand will see it as job done. Too many farming families still know someone who has been hurt or worse."

The milestone was celebrated last week with a gathering on the Leeston farm of Federated Farmers health and safety spokesman David Birkett, attended by ACC associate minister Nicola Grigg and industry leaders including Dairy Holdings ex-CEO Colin Glass, PGG Wrightson CEO Stephen Guerin - both Safer Farms board members - and Federated Farmers President Colin Hurst.

A Wairarapa farmer, Nelson chaired Safer Farms from 2020 through to January 2026 and was instrumental in the formation of the Farm Without Harm strategy launched in 2023.

She believed Farm Without Harm was a global first in terms of industry-wide collaboration.

Asked how much of the reduction in ACC farm claims was due to the campaign, she said it was about visibility.

"And it's about communicating and giving [farmers] some tools and technologies. But it's their choice to make good decisions and take that knowledge and apply it, which is what we're celebrating today."

Nelson said that ACC funding of $11 million over five years, announced in early 2025, allowed Safer Farms to gear up the Farm Without Harm team, pick up some initiatives and "do the deep dive" into four high-harm areas identified as its targets.

These are: the psychosocial risks of mental health impacts and diminished wellbeing; vehicles and machinery accidents; livestock handling injuries; and exposure to agricultural chemicals and airborne hazards.

Nelson said they had focussed on vehicle harm in the last two years and had recently started work on livestock handling.

'Very Encouraging'

ACC Head of Injury Prevention Renee Graham said in a statement that the drop in claims was "really encouraging".

"It's difficult to pinpoint exactly why we're seeing this downward trend. However, there's a lot of great work being done by organisations like our partners Safer Farms, who are on the ground with our farming communities delivering targeted prevention programmes and are inspiring a safer farm culture."

Graham said there would always be risks in an industry that involves operating heavy machinery and handling livestock.

Common causes of injuries for farmers were from lifting, carrying and twisting, as well as falls.

"Being tired and rundown effects decision-making, so we encourage all farmers to stop and think before they get stuck in."

Their farm is located at Koputaroa, a small rural community about eight kilometres north of the township of Levin. It's an established dairy farming area - the local primary school was built there in 1891.

It's flat to rolling country and has some low-lying swampy areas and to the east are the formidable Tararua Ranges. The Moxham family have farmed here for the past 50 years.

Wayne and Ange have two farms - both certified organic. The larger of the two runs 500 cows on 240ha and the smaller one - 70ha runs 120 Friesian cows that produce 45,000kgMS, and it's this farm that won the award.

Wayne Moxham says his father had been farming all his life and did the usual thing of putting on lots of superphosphate and nitrogen, like others around him did. But he says his dad saw the farm start to decline under this regime, wondered if there was a better way and suddenly switched to just applying lime and things started to come right.

A few years on, Wayne says a friend suggested that they were close to becoming organic, and this triggered them to become officially a certified organic dairy farming operation in 2010.

"Fonterra at the time were paying a premium for organic milk, so we thought we'd give it a crack, and the more we got into it, the more it made sense to me. There weren't a lot of organic farmers around when we started, so we kind of had to work it out for ourselves. But since then, more farmers have converted to organics and that's helped," he says.

One thing that strikes you when you go for a farm walk on the property is the quality and lushness of pasture. Like most organic farmers, the Moxhams rely on quality pasture because it's pretty much impossible to source organic supplements from off farm. They harvest baleage in the spring and they are a grass-based system.

Before they converted to organics, they just planted ryegrass and clover and when they sprayed out the weeds, the clover died. This is what conventional farmers do, says Wayne, but he believes this just poisons the ground. Because he can't spray out the paddocks now, Wayne just runs a rotospike device over the land and sows the seed.

"When we re-grass we put in multiple species such as plantain, chicory, clover, different species of ryegrass and even sunflower seed. We don't use coated seed either because that is unacceptable for organic farming. So now our girls (cows) don't just have a constant menu of ryegrass, they have other species and as a result are happier and healthier," he says.

There are other advantages with mixed species, says Wayne Moxham. He says the likes of plantain reduce nitrogen emissions and also the different species of grass grow better at different times meaning there is always quality feed available.

Business Expands Into Gelato

Management of the farm has been the key to the production of the high quality of organic milk and since 2010 they have been supplying quality organic milk to Fonterra. But in 2019 the couple made a bold move that has set them apart from many dairy farmers - they decided to build a creamery and bottle and sell some of their organic milk to the public.

Up until then, Ange Moxham had been working as a deputy principal at a nearby school, but with building of the creamery underway, she decided to quit teaching after 25 years to work full time on the farm, with a particular focus on the creamery.

Staff were employed to run the farms on a day-to-day basis while the couple focused on the creamery, with Wayne keeping an oversight on the farms.

"Part of the deal about devoting our time to the creamery was to make sure we had a quality [farm] manager and assistant manager, because Wayne still couldn't be in the cow shed milking if we were to launch our creamery properly," says Ange.

Udderly Organic is launching organic milk gelato.

In September 2023, after months of trials and tests, Ange and Wayne finally won approval to sell their milk and quickly sales have built up. Wayne says the word has got around about their milk and they have been besieged by customers wanting to stock their product. They now deliver their milk daily to more than 100 outlets, ranging from Wellington in the south to Masterton in the east, and north to Whanganui and Palmerston North. They employ staff to do this, however, Ange says from time-to-time Wayne hops in the van and does a delivery.

"He likes getting out and meeting the customers," she says.

But there is one more twist to this story. Ange and Wayne are now in the process of launching another product made from their milk - gelato.

"What we do to make it more attractive to the people who stock our milk is at the end of the week we take back any that is unsold and we don't change them for it. But that product is still perfectly good, so we freeze it and are now using it to make our gelato," says Wayne.

Sandra Faulkner, who's just been elected as Federated Farmers vice president says rural people's views must be heard and considered in the huge range of changes that are slowly making their way through the legislative hoops in parliament.

The massive reforms will see the abolition of regional councils, Resource Management Act (RMA) reform, and changes to the rules around fresh water.

She says Federated Farmers is working through the implications of the local government changes to ensure that rural issues such as pest management and flood control are properly met in the changes.

"These are generational legislative changes and will determine how our children and grandchildren farm in the future. I cannot overstate how important it is to get these changes right now," she told Dairy News.

To do this, Faulkner says it's important that rural people have input into the decision-making process and ensure that the right elected people are making the right decisions and are accountable for these.

She's been a Gisborne District Councillor before becoming involved in Feds and admits to being a fan of the unitary authority structure which central government is promoting.

Faulkner believes it is critical that communities up and down the length of the country - be they urban, peri urban or rural ratepayers - can feel they can trust those elected to make decisions on their behalf.

Most important, she says, is what rural people want from central government is a commitment that such changes can be delivered with a regional flavour.

"The other thing is certainty and clarity for those of us who are running big businesses on the land. We can't make decisions and pivot on the spot when you're working in a biological system. For us, it's certainty that allows us to farm across five to ten years. That is what we need for our businesses," she says.

Adverse Events and Politics

One of Sandra Faulkner's key areas of interest is around adverse events and emergency management, which is now front and centre with legislation currently before parliament.

She says this issue, together with infrastructure, need to be taken out of the present three-year political cycle and there needs to be cross-party support that stretches out over 30 years, and in the process get an idea of the spend and bring some certainty.

"Hopefully with the emergency management legislation, politics will not interfere, and in terms of rural, those people who live at the end of the shingle road, across a bridge or u in the ranges will feel connected to our society and supported like those of us who live close to towns," she says.

While there is fierce competition for road funding and other forms of infrastructure, such as telecommunications, Faulkner says decision makers should think about where the export dollars come from - namely, rural communities.

"In terms of connectivity, farmers run multimillion dollar businesses and are required to do much of the so-called 'paperwork' electronically. For example, animal declarations, traceablility for our animals and most of our accounting systems are cloud based," she says.

But Faulkner says most important of all is having reliable connectivity during an adverse weather event such as recent floods in Wairarapa.

She says it's most important that families can reach out at critical times to those individuals or organisations that can offer assistance.

"That human connection is something that I cannot emphasise enough. You will see from Fed Farmers a real focus on making sure that those channels of communication are operating well and they cope with whatever mother nature throws them," she says.

The announcement comes off the back of declining prices at recent Global Dairy Trade (GDT) auctions.

The revised forecast is $9.25/kgMS, with a new range of $8 - $10.50/kgMS.

This is down from the opening forecast of $9.75 per kgMS announced in May, when the Co-operative started with a wide range of $8.00 - $11.00 per kgMS to reflect the potential for volatility and varied outcomes throughout the season.

Richard Allen, chief executive of Fonterra, says the change to the 2026/27 forecast reflects softer-than-expected demand at a time of strong global supply.

“GDT prices have fallen 11% across the reference products that inform the Farmgate Milk Price since we announced the opening forecast in late May, while milk production from key exporting regions is up on last year. We’re expecting a strong start to the season in New Zealand, noting the potential for the El Niño weather pattern to impact global supply as the season progresses,” says Allen.

“It’s very early days in terms of the proportion of our FY27 sales book that has been contracted, so we face significant exposure to changes in commodity prices.”

Allen says the Co-operative continues to focus on maximising returns for its farmer shareholders.

“As the seasonal supply picks up, our plan will ensure we utilise our flexible operations footprint, strong customer relationships and robust supply chain to shift milk into the products and markets where we can get the best returns for our farmers’ milk.”

The 2025/26 forecast Farmgate Milk Price of $9.60 - $9.80 per kgMS, with a mid-point of $9.70, remains unchanged.

The app-based platform has been developed by a NZ dairy processor and global supply chain solutions company Czarnikow (CZ).

CZ was founded in London in 1861 and has developed similar tools for sugar beet farmers to set fixed prices for physical sugar beet grown in the UK and Europe.

This app-based tool marks their entry into the New Zealand market.

The launch follows a successful pilot with a group of farmers, who highlighted the speed, clarity, and simplicity the physical milk pricing tool brings to the pricing process.

What began as a pilot programme is now moving into broader commercial use and the platform is now positioned to support wider farmer participation.

Will Rook, chief executive of CZ, says New Zealand is the ideal country to launch the innovation.

"One of the hardest things about being a New Zealand dairy farmer is being at the whim of global markets which fluctuate due to issues well beyond the average farmer's control," says Rook.

"This tool allows farmers to fix the price of part of their physical milk, helping them plan further ahead."

Rook says that 30% of the world's dairy exports come from New Zealand, meaning Kiwi farmers should appreciate the ability to set fixed prices for physical milk with transparency and confidence.

The award recognises the quality, craftsmanship and expertise behind Kikorangi, following judging against more than 4,500 entries from over 20 countries.

It marks Kāpiti's strongest-ever performance on the international stage and highlights New Zealand's specialty cheesemaking sector and the expertise of the Eltham team behind the Kāpiti brand.

Pascal Francisque, Lactalis New Zealand chief executive, says the achievement is a testament to the craftmanship of the company's cheesemakers.

"This recognition belongs to our people. The skill, passion and dedication of the team at our Bridge Street site in Eltham are what make achievements like this possible," Francisque says.

"To receive this level of recognition in a competition of this scale reflects the expertise, dedication and attention to detail our Taranaki team brings to cheesemaking every day," he adds.

"New Zealand has a proud history of producing outstanding dairy products, and this award shows that our cheesemakers can compete with some of the best in the world."

In addition to the Supreme Champion title, Kāpiti secured trophies for:

• Champion Overseas Cheese — Kāpiti Kikorangi Triple Cream Blue
• Best New Zealand Cheese — Kāpiti Kikorangi Triple Cream Blue
• Best Vegetarian Cheese — Kāpiti Kahurangi Creamy Blue

Six further Kāpiti cheeses were awarded gold medals in their respective categories, alongside numerous silver and bronze awards.

The award-winning cheese is produced at Kāpiti's Bridge Street site in Eltham, where a highly skilled team continues to build on Kāpiti's longstanding reputation for quality specialty cheese.

Cathy Lang, Lactalis New Zealand master cheesemaker, says the result reflects years of craftsmanship and the commitment of the entire Eltham Bridge Street team.

"This one means a lot. We've come close before, so to finally take out Supreme Champion with Kikorangi is incredibly special for everyone involved," Lang says.

"Great cheese is never the work of one person. It takes a team of people who care deeply about their craft, from cheesemakers and maturation specialists through to quality teams, operations and logistics.

"Every wheel of Kikorangi represents years of experience, knowledge and attention to detail. To have that recognised on the world stage is incredibly rewarding."

Together with her husband, Lyons has spent over 20 years building a career in the dairy industry, working their way from farm management to farm ownership.

Since moving from Northland to the Tararua District in 2005, the couple have grown their farming business from sharemilking in Woodville to purchasing their first farm in Dannevirke in 2006, before moving to a larger farm in Pahiatua in 2015. 

Now in her 30th season farming full-time, Lyons says the constant variety, challenge and opportunities to keep learning are what first drew her to the agricultural sector and what continue to motivate her today.

Her career has evolved significantly since graduating with a Bachelor of Applied Science in 1996, but after being diagnosed with osteoarthritis in her hip in 2023, Lyons realised it was time to expand both her study journey and future career opportunities. 

“The diagnosis pushed me to complete my graduate diploma but also highlighted the need for a hip replacement. Although I kept farming, I realised my body was wearing out and I needed an exit plan if it resulted in an inability to continue working on the farm,” she says.

Returning to study after years in the workforce brought both confidence and uncertainty. 

“I was, and still am, a little uncertain of my ability. But having life experience to draw on does help, though it can be harder to move away from established views and ways of thinking. It’s good to learn and grow, and I like to be challenged – this has certainly challenged me,” Lyons says.

She enrolled in the Integrated Farm and Environment Management course in 2025, where she found some aspects aligned naturally with her day-to-day farming experience, while others pushed her outside her comfort zone.

“I’m farming every day, so I had a good knowledge base, but the geology part was more difficult as I had less experience to draw on.”

Lyons says she found value in reconnecting with formal learning and engaging with both lecturers and fellow students. Now completing postgraduate study through a mix of on-campus and distance learning, she says the classroom environment remains her preferred way to learn. 

“I enjoy being on the Manawatū campus as I find it easier to learn in a lecture classroom environment, alongside other students. Being able to discuss ideas and draw on other people’s knowledge really helps consolidate learning. However, studying via distance for the second semester is necessary, as even trying to find the time to sit down to get assignments done during calving is difficult!”

Her academic efforts were recently recognised with the New Zealand Society of Soil Science Undergraduate Prize, which recognises excellence in soil science research, technology and advocacy. 

“It’s a real honour to receive, though I still find it difficult to accept that I deserve it!”

Lyons says her study experience has also reshaped the way she approaches farming and environmental management, particularly around freshwater farm planning and sustainability. 

“It’s helped me better understand the complexity of farming systems and environmental policy. It’s taken away a lot of the unknown around freshwater farm plans and shown me how they can become an integrated and effective part of sustainable farming.” 

Following the completion of her postgraduate certificate, Lyons is considering a master’s degree, though balancing it alongside farming remains a challenge.

“Apart from milking, there is no such thing as a typical day on the farm! For most of the season, it’s only me and my husband, though we employ an international student over the summer for a couple of months as part of their agricultural qualifications.”

This allows Lyons to tutor Primary Industry Training Organisation students completing their level three and four qualifications.

She and her husband 

share the workload, but there’s always plenty to do – from calf rearing, feeding out and pasture management, to fencing, fertiliser spreading, compliance paperwork, financial planning, winter management, soil care and tending to the stock in their care. 

The sheer variety of responsibilities is what Lyons says makes agriculture such a rewarding and versatile industry, with the range of skills developed on-farm coupled with education opening doors in countless directions. 

“The opportunities for development and upskilling are limited only by imagination. Someone graduating with an agricultural degree could become a Member of Parliament, a company director, a dairy farm or herd owner, or a leader of a lobby group. It’s about forming a plan, working towards your goals, finding support and continuing to invest in education and personal development.” 

Around 200 representatives from Fonterra's 24 New Zealand manufacturing sites gathered recently to celebrate the incredible achievements across the network over the past season.

This year, 20 awards were presented, recognising excellence across a wide range of categories - from quality and health and safety through to sustainability and innovation - showcasing the depth of capability across the co-op's manufacturing network.

Celebrating Employees

Fonterra chief operating officer Anna Palairet says it's wonderful to celebrate the incredible work the team does every day.

"What stands out is our people. The work they do from collecting milk from our farmer shareholders all the way through to getting amazing high-quality products to our customers. They've done some incredible mahi."

Best Site Cup Marks 20 Years

The Best Site Cup, now in its 20th year, is a long-running highlight for the co-op.

It shines a spotlight on the more than 7,000 manufacturing employees across the country, recognising the critical role they play in delivering value for farmer shareholders, customers and communities.

"It's brilliant to be here to acknowledge all the people who are here to celebrate with us, and also all our people at sites working on a daily basis to make that happen," says Palairet.

Fonterra's director of New Zealand Manufacturing, Chris Kane, says it's a proud moment to reflect on what teams have achieved over a busy season.

"With strong milk collections across the country, it's been a demanding season for everyone at our sites. These awards are about more than results - they reflect the daily commitment to safety, quality, teamwork and continuous improvement that keeps our co-op strong."

These were just some of the conversations that Massey University initiated at its site at Fieldays recently.

Danny Donaghy, Professor of Dairy Production Systems and joint Deputy Head of the School of Agriculture and the Environment at Massey, says their Fieldays site and also the Science in Farming site where they had a presence was designed to bring farmers' attention to simple practical solutions to some significant issues they face.

Capturing Nitrogen Before It Reaches Waterways

Donaghy says Massey University and the Ministry for Primary Industries (MPI) made various models which they had on the sites which demonstrate how nitrogen can be captured on farm using a woodchip bioreactor - one of which is already in use at a farm in the Manawatu.

He says another model showed the value of a detainment bund at the bottom of a slope which can capture phosphorus and also soil.

"One cropping farmer from the South Island told me that he installed a detainment bund and when there was a heavy rainstorm, two hectares of his crop and soil was washed down the hill, but it was stopped from going into the stream by the bund," he told Dairy News.

"As a result of this... when the soil dried out, he was able to recover about a dozen truckloads of it and restore the hillside. He says he never realised how much soil could be wasted by such an event," he says.

Donaghy says this is just one of the many simple solutions that are now available and are becoming more necessary as the frequency of adverse weather events increases.

Pasture Mixes Designed for Climate Resilience

Another issue for farmers who are having to cope with climate change and unpredictable adverse weather events - be they floods or droughts - is getting pasture mixes that can help mitigate some of the impacts.

Donaghy has various cocktails of pasture mixes that could make a difference.

He says for summer dry, ryegrass with chicory and red clover and also tall fescue, red clover and lucerne. Then for areas that get waterlogged, species such as tall fescue with timothy and strawberry clover.

Learning to Live With Kikuyu Grass

"Another issue that has created a lot of interest is how to deal with kikuyu grass which is dominant in Northland but has now spread south into the Waikato and down the coast to the Manawatu. For years people have been asking how to deal with it and it's come to a stage when we just have to live with it and find ways of better dealing with it," he says.

Donaghy says he's been looking at a range of options to mix with kikuyu and these include prairie and brome grass, lotus and white clover.

He says all these species were on show at the Fieldays and the aim has been to provide options and to get farmers and their advisors to see which species of pasture best suit their environment and specific production requirements.

Held at the Sudima Hotel Auckland Airport during the 2026 Holstein Friesian NZ Conference and streamed live via bidr®, the auction attracted enthusiastic participation from breeders and supporters from around the country.

PGG Wrightson Auctioneer Brook Cushion kept the energy high throughout the evening as 26 lots went under the hammer. 

This year’s catalogue featured a wide range of items including elite genetics, animal health products, clothing, homeware, artwork, premium beverages and two mystery lots that added an extra element of excitement to the auction. 

Funds raised through the auction will be channelled directly into Holstein Friesian NZ’s youth initiatives, helping provide opportunities that encourage, develop and support the next generation of breeders and dairy industry leaders. 

Lot 26, donated by Semex NZ - 25 straws of Holstein Friesian sire Westcoast Alcove – fetched $5,000 and officially kicked off the fundraising for the six-strong team, scheduled to be announced tonight, that will represent New Zealand at the 2027 European Young Breeders School.

Holstein Friesian NZ Black & White Youth convenor Bradley Parkes said the proceeds of the youth auction helps the committee run high quality events and programme for Black & White Youth members. 

“We have great thoughts of what we can do for our youth, and the youth auction ensures the committee can continue supporting our youth members,” he says.

This year’s success surpassed last year’s auction result, which exceeded $17,000, and highlights the ongoing commitment of breeders, sponsors and supporters to investing in the future of the dairy industry. 

Holstein Friesian NZ thanked to the sponsors of the 2026 Black & White Youth Auction: Agvance, Alleva, Bay of Plenty Branch of HFNZ, Bell-Booth, bidr®, Boehringer Ingelheim, Canterbury Branch of HFNZ, J & A Cockrem, O & C Copinga, CRV, Cummings Family Trust, Fonterra, Hansen, Hawke’s Bay Branch of HFNZ, LIC, Manawatu Branch of HFNZ, Nelson/Marlborough/Golden Bay Branch of HFNZ, Northland Branch of HFNZ, Nutritech, Open Country, Otago Branch of HFNZ, PGG Wrightson, Power Farming, RePro IVF, Samen, Semex NZ Ltd, Shearwell, smaXtec, Southland Branch of HFNZ, Taranaki Branch of HFNZ, W & L Taylor, TechMix, Vetpak, Waikato Branch of HFNZ, D Wilde, World Wide Sires and Zoetis.

He wants the industry to continue pushing productivity, efficiency and environmental outcomes.

"It's about investing in the future resilience of the dairy sector and making sure that we can continue to push the boundaries because we have plateaued in the last 15 years.

"So, how do we continue to push what is possible in terms of productivity and efficiency? And it's an 'and-and' story, and the environment, we can't do it without balancing that."

Responsible Dairy Backed by Major Government Investment

Parker spoke to Dairy News at the National Fieldays after the Government announced a major investment, as part of its Land Use Flexibility package, to support a more productive and sustainable future across six sectors including dairy.

The package includes $18.3 million in government funding towards a seven-year co-funded programme called Responsible Dairy that DairyNZ will lead on behalf of the dairy sector.

Parker says Responsible Dairy is a programme of co-investment into thee long-term resilience of New Zealand dairy that recognises its status as New Zealand's most valuable export sector.

Dairy Remains a Cornerstone of the Economy

"The New Zealand dairy sector is a cornerstone of the national economy, contributing significantly to exports, employment, and regional development. In the year to 30 June 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, says Parker.

Addressing a Productivity Plateau

"Since around 2015, the dairy sector has reached a productivity plateau.

"Responsible Dairy will build resilience and value in the dairy sector by helping lift all farmers up to the next level of productivity, efficiency and sustainability within their individual farming business, while continuing to drive further environmental gains across the sector."

Government and sector co-investment is pivotal to accelerate innovation, scale up adoption, and efficiently deliver environmental and productivity gains across the dairy sector, he adds.

The investment 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.

In total the programme funding is $45.85m over 7 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 from partners.

Responsible Dairy includes partnerships with leading farmers and dairy and technology companies.

The new plant will have the capacity to process 30,000 tonnes of butter per annum and will be commissioned at the end of 2027.

Open Country Dairy (OCD) is also boosting production at its first butter plant in Waharoa, Waikato.

The plant, which opened in November last year, can process 20,000 tonnes of butter; another 5,000 tonnes of capacity, mainly producing small packs for retail, is being added.

OCD chief executive Mark de Lautour says the expansion will give the company a nice balance between North and South Islands.

Milk Fat Has Become Increasingly Valuable

OCD chief executive Mark de Lautour says the expansion will give the company a nice balance between North and South Islands.

De Lautour told Dairy News that currently there's a big focus on the fat component of milk.

"For years everyone said processing milk was about taking the water out of milk.

"It's not that anymore, it's taking out the protein and fat, which are of course the valuable parts."

Global Butter Prices Have Stabilised After Record Highs

On the Global Dairy Trade auction, milk fat prices rose to record levels last year before coming down in recent months.

Butter prices rose to a record US$8,000/metric tonne one year ago. In the latest GDT auction, butter price dropped 2.4% to US$5516/MT.

Anhydrous milk fat price dipped 1% to sit as US$6601/MT at last week's auction. It reached over US$7600/MT earlier this year.

Expanding Product Options Across Protein and Fat Categories

De Lautour says the investments also ensure the company has options on protein and fats.

"For proteins we've got skim and whole milk powders and cheese; cheese of course is casein and whey is an increasingly valuable protein that falls out of the cheese-making process. So, we've got plenty of options on the protein side.

"But on the fat side, we only had AMF or whole milk powder. Butter has therefore given us the optionality of WMP, AMF or butter to utilise the fat component of the milk."

The company looked at other milk fat options like cream cheeses and UHT cream, which are performing better than butter right now.

However, they are currently limited for market options and pricing is largely "China-driven", noted de Lautour.

"Especially the UHT cream, a lot of that going into China," he says.

"And the big Chinese manufacturers are also building UHT whipping cream and cream options.

"So, we'd rather do products where you can sell it to 20 or 30 countries rather than just a handful.

"That's a very Open Country thing - pick a product, do it very efficiently at a high quality level and keep it simple. But make sure you've got options."

While butter plants don't necessarily require more milk, Open Country is still looking for new suppliers.

De Lautour says they are looking at additional cheese plants on both islands.

"We're just working out what type of cheese, and which is the priority, North Island or South Island."

A Big Year

It's been a busy 12 months for Open Country Dairy.

Apart from opening its new butter plant at Waharoa, the company acquired two milk processing plants - Miraka in Mokai (near Taupo) and Mataura Valley Milk in Gore.

The ice cream business of Open Country's parent company Talley's has also come under its fold.

Mark de Lautour says processing capability at both plants has improved and they are now making money.

"Both those sites had significant inefficiency and high costs and we've tightened it up.

"It's been a really big year: the company is significantly bigger than it was a year ago.

"So, this year is just getting our arms around that, making sure everything delivers."

'Milk Price Plus'

On the milk supply side, it's also been a good year for Open Country Dairy.

The company recruited over 60 new suppliers taking its supplier base to "well over 1200", says Mark de Lautour.

He says the company will always welcome new suppliers.

"We're always looking for people who want to come and give us a go.

"We give farmers a choice and there's lots of interest from farmers to give us a go."

Open Country offers farmer suppliers choices when it comes to milk payments: both options provide monthly advance payments, but they can then either be settled in full four times per year or they can choose the ‘Milk Price Plus’ payment model. Under this system, they are still paid advance rates, but the final milk price is what the farmer would get paid under Fonterra’s farmgate milk price (FGMP) model, plus an additional 10c/MS.

“They can choose on the fast cash, four settlement model, or they can do the more traditional dairy industry payment plus 10c model,” says de Lautour.

“When we pay suppliers using the more traditional full-season wash-up way, we benefit working capital-wise.

“The fact that we get to hold onto this money longer saves us interest costs, which we then return by way of the extra 10c.”

Glass, who stood down at the end of May, said that moving on has given him the chance to reflect, and appreciate that what was created in Dairy Holdings was "quite special".

"As always, it's about the people that you deal with rather than necessarily what you achieve, but certainly the company's gone from strength to strength, from what was reasonably humble beginnings way back in 2001, to what it's become now," he said.

"Very, very proud of the team and some of the underlying success stories that I've had the privilege of being involved with," he told Dairy News.

For the immediate future, Glass is now concentrating on the family dairy and bull beef farm at Methven he shares with wife Paula and daughters Hannah and Olivia and seeing how it can be further developed.

However, it's clear that governance roles in the industry may not be too far down the track, and Glass agrees that a governance role with Fonterra is something that "gets raised from time to time".

"It's not something that I'm considering just at the current point in time.

"But certainly, you know, Fonterra's success is New Zealand's dairy farming success. So, I've certainly got an eye on that, potentially in the future at some stage, but not at the moment."

Building One of New Zealand's Largest Dairy Businesses

Dairy Holdings now holds around 90 farms, both dairy and support, producing around 33 million kgMS annually.

Under Glass's leadership the company continued to grow right to the end of his tenure, with the acquisition of the Rangitata Partnership's farms, under a deal which only went unconditional on his last day at work, and was settled on the Wednesday of the following week.

With Rangitata holding several dairy farms in South Canterbury and a large grazing block in Tarras, Glass said it was "quite a large transaction and good one to get under our belt at the end".

Glass said the success of the company was the testament to the vision and courage of the founders, Allan Hubbard, Colin and Dale Armer, and Alan Pye, to pick up the farms of the former Tasman Agriculture and Dairy Brands groups when their then owners decided to sell up in 2001.

As Tasman Ag's chief financial officer at the time, Glass came with the deal and he proceeded to lead the new company through an extraordinary growth period for dairying.

Overcoming Early Challenges

Glass said many of the challenges of the early years were the sometimes very involved legal processes around water take consents that had to be pursued through various regional council hearings and in some cases all the way to the Environment Court.

"Out of all of that, there were some amazing learnings and that really has set Dairy Holdings up for the future.

"Most of those 70-odd dairy farms in Canterbury now are all incredibly well irrigated with reliable, relatively low-cost, and affordable water. That's really added to the company's low-cost farming model. So it's meant that the overall portfolio is now really, really resilient and able to understand most price shocks.

"The piece for me that was quite nice, was how the team and everyone involved at that time was able to take some of those challenges and knockbacks and learn from them, and it was out of that that the company really grew.

"When you look back now, any difficult times we experience is always what makes you stronger. Never have you finished your learning and if you just stay focused, you can always get there in the end."

Sustainable Growth

While the growth in the dairy industry of the last 20-odd years will never be replaced, there was currently some resurgence of dairy conversions going on.

However, it was being done in a very sustainable way, says Colin Glass.

Dairy farming had massively changed over the years with state-of-the-art irrigation, AI-driven algorithms and other technologies transforming efficiency.

"That's been happening right across the dairy industry as people have developed their own farming systems and models and invested in their farms," he says.

"There's more riparian planting, there's a beautification of farms like we've really not seen in the generation, and so you've got a real sense of pride in ownership within the sector that that only comes with success."

Dairy remained the absolute cornerstone for rural New Zealand and so many businesses livelihoods were dependent on it, he says.

"Thank goodness that we do have dairy because if we didn't, you know there wouldn't be too much really holding up the New Zealand economy at the moment."

That's the view of special agricultural trade envoy Nathan Guy, who recently returned from a visit to key export markets - the US, the UK, and Europe.

Paris Agreement Withdrawal Could Trigger Trade Renegotiations

He says, as the election campaign steps up, politicians should be careful.

"We've got to continue to show and prove that we are sustainable, that we are focused on the environment and doing our utmost to meet expectations from these high-value markets," he told Dairy News.

"That's why in this election campaign, when some political parties propose to pull out of Paris, they should be careful about what they are calling for.

"Because if this happened, we would have to renegotiate two very important free trade agreements, being the UK and the EU FTAs.

"What would happen is we'd have to put two gold-plated FTAs through this shredder and renegotiate."

Election Debate Intensifies Over Paris Agreement Membership

While National has ruled out withdrawing from the Paris Agreement, an international treaty adopted in 2015 to limit global average temperature increases, coalition partners NZ First and ACT differ.

NZ First leader Winston Peters confirmed at Fieldays this month that his party would campaign on leaving the accord.

ACT says it will campaign on reforming the Paris Agreement and, if that fails, to withdraw.

Dairy and Red Meat Exports Could Face Immediate Pressure

Guy, a former Minister for Primary Industries for National, warns that schedule prices for dairy and red meat will drop overnight if the EU and UK FTAs are dismantled because they don't meet the expectations of consumers.

"It took us decades to get a high-value free trade agreement with the EU.

"I was doing the rounds when I was Minister, talking to countries about the importance of this free trade agreement."

Half a Billion Consumers Value New Zealand's Sustainability Reputation

The EU's 450 million consumers, predominantly a growing middle class, trust New Zealand products.

Across the English Channel, the UK market adds another 70m consumers, again a well-urbanised and high-value market.

"These are two markets made up of half a billion people that love New Zealand products, where our reputation of sustainability and quality standards is paramount.

"Why would we want to sit down and have to re-negotiate two gold-plated FTAs?"

UK Supermarket Buyers Hold Significant Influence

Guy also noted that during his trip, he found that the top four UK supermarket buyers have a lot of power.

The buyers, who source products for the respective supermarkets, are focused on ESG - environment, social and governance.

The big four supermarkets are Tesco, Sainsbury's, Asda and Morrisons.

He says these buyers should be brought to New Zealand to see first-hand the standards practiced by our food producers and processors.

"We must get these key influencers down to New Zealand to understand our quality standards, to get in processing plants, to stand in the middle of farms, to understand and see. Seeing is believing.

"We don't want to lose sight of the fact, as a small trading nation in the South Pacific, brand New Zealand is paramount to getting our product to market.

"We've got to continue to show and prove that we are sustainable, that we are focused on the environment and doing our utmost to meet these high-value markets."

In September 2024, council compliance officers inspected the defendant’s farm and found effluent had overflowed from the sump, causing extensive ponding onto pasture. Further ponding was found to have occurred from a travelling irrigator operating on already saturated paddocks. Both discharges posed a significant risk to contaminating groundwater.

In sentencing, Judge Dickey described the offending as careless, noting that effluent management systems on the farm were vulnerable to failure and had not been adequately overseen. The court found that the effluent pond was full, creating pressure to irrigate at a time when paddocks were already saturated, and that a simple alarm system could have prevented a sump overflow.

Waikato Regional Council regional compliance manager Patrick Lynch emphasises the importance of proactive and vigilant effluent management.

“Dairy effluent systems need to be fit for purpose, robust and carefully managed at all times to avoid environmental harm.

“Discharges like this pose real risks to water quality, particularly in the wetter months where soils are already saturated and waterways are nearby,” Lynch said.

The sentences were imposed in the Huntly District Court by Judge Melinda Dickey in two decisions released recently. The prosecution was taken under the Resource Management Act by Waikato Regional Council. 

 In June 2024, council officers conducted two inspections at a Tuakau farm owned by Sunrise Dam Limited. On the first occasion they found a significant volume of dairy effluent had been unlawfully discharged onto land from a storm water diversion, on the instructions of the farm’s contract milker, Yubraj Subedi. They also found a leachate discharging from a stock feed bunker into a roadside drain. 

During a second inspection later that month, council officers found the feed bunker was still discharging leachate into the same drain, a drain with the potential to discharge into the Waikato River. 

Subedi was convicted and fined $49,000 for his part in the offending, and Sunrise Dam Limited $17,500 in respect of the leachate. 

“This case highlights the importance of clear responsibility for environmental compliance on dairy farms, particularly where farm operations are delegated to others,” said regional compliance manager Patrick Lynch.  

“While the court has recognised that Sunrise Dam Limited had finally upgraded infrastructure since the council intervened, the convictions and fine reinforce that both farm owners and those managing day-to day operations must ensure that systems are fit for purpose and appropriate management procedures are in place at all times to prevent harm to the environment.”

The package includes $18.3 million in Government funding towards a seven-year co-funded programme called Responsible Dairy that DairyNZ will lead on behalf of the dairy sector.

Building a More Productive and Sustainable Dairy Sector

DairyNZ CEO Campbell Parker says Responsible Dairy is a programme of co-investment into the long-term resilience of New Zealand dairy that recognises its status as New Zealand’s most valuable export sector.

“The New Zealand dairy sector is a cornerstone of the national economy, contributing significantly to exports, employment, and regional development," Parker says.

"In the year to 30 June 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," he says.

“Since around 2015, the dairy sector has reached a productivity plateau.

"Responsible Dairy will build resilience and value in the dairy sector by helping lift all farmers up to the next level of productivity, efficiency and sustainability within their individual farming business, while continuing to drive further environmental gains across the sector."

Accelerating Innovation and Technology Adoption

Parker says Government and sector co-investment in the programme is pivotal to 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," he says.

"Responsible Dairy will be led by DairyNZ on behalf of the sector. In total the programme funding is $45.85m over 7 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 from our partners."

Responsible Dairy includes partnerships with leading farmers and dairy and technology companies to enable testing and demonstration of next-generation low footprint farm systems, transformative dairy conversion options, and stacked technologies on commercial farms.

Focus Areas for the First Two Years

In the first two years, Responsible Dairy will deliver initiatives that build strong foundations of a resilient dairy sector, including:

• Showcasing low footprint, high productivity dairy farms via the establishment of a national network of 35-40 partner farms
• Evaluation and initial testing of new/near-to-market technological and nature-based options to improve productivity and environmental outcomes
• Demonstrating next-generation on-farm practices and transformative dairy conversions that improve productivity while reducing environmental footprint
• A menu of farm system and nature-based options for use in case study catchments and demonstration farms, and a decision framework to guide where they should be used
• A credible national blueprint for a resilient dairy sector. This will integrate spatial mapping (regional and catchment scale), refined economic modelling and analysis of climate resilience to guide policy, investment and planning.

Goals for 2050

By 2050, the programme is expected to deliver:

• Approx. 20% growth in milksolids from existing farms and land use change
• 20% reduction in nitrogen leaching per hectare, and a focus on doubling nature on farms through a 60% increase in riparian planting alongside a 50% increase in protected wetland areas
• 13% increase in sector profitability.

Parker says that much like the current DairyNZ strategy, Responsible Dairy will use science-led innovation, coordinated action, and put practical tools into the hands of farmers to improve the resilience and economic performance of the sector.

“Arguably dairy farmers have done more to lift standards than any other sector. We’ve spent years investing into environmental improvements, better infrastructure, planting, effluent management, genetics and more resilient farm systems. That progress provides a strong foundation for the next phase of change. But standing still is not an option," says Parker.

“Our global competitors see the same opportunity as we do. They are innovating and adapting at an incredible rate and by comparison, we may not have challenged ourselves as hard as we could have as a sector.

“To protect value and stay ahead of global competition, our challenge is to grow and evolve the sector in ways that strengthen environmental outcomes and social license, while enhancing the provenance and sustainability attributes that underpin the premiums high value customers and consumers are willing to pay for New Zealand milk.

“The reality is that future value growth will look different to the past. There will be an abundance of opportunities for dairy systems that are supported by modern infrastructure, better environmental management, improved genetics and emerging technologies.

“Responsible Dairy supports that. It will give farmers options. As well as the tools and information that they can choose from to improve efficiency, productivity and environmental outcomes,” says Parker.

Responsible Dairy is backed by a coalition of co-funding partners across science, farming, finance, technology, fertiliser, and government including: DairyNZ, MPI, dairy companies, Craigmore Sustainables, Dairy Holdings, Pāmu, the Fertiliser Association of New Zealand, Rabobank, Halter, and Gallagher.

Science will be provided in partnership with Bioeconomy Science Institute Maiangi Taiao and Earth Science New Zealand.

ACC injury prevention leader James Whitaker says it is also an important time to reflect on injury prevention and encourage farmers to look after themselves and their team.

"Fieldays is an awesome event and one that our rural communities look forward to every year," says Whitaker.

"We are encouraging farmers to take a moment during the week - where they have some time and space off farm - to reflect on their processes and ensure they are prioritising wellbeing."

"We know that farming is an all-consuming role and that is easier said than done during the busy seasons, but the most valuable asset on the farm is the people and we need to make sure our farmers are going home safe and healthy every day."

Agricultural Injury Statistics Highlight Ongoing Risk

In 2025, ACC accepted 17,057 work-related agricultural claims which came at a cost of $119 million to help people recover.

These injuries resulted in almost 210,000 days of weekly compensation for New Zealanders which came at a cost of $29.8 million.

"We know that when a person sustains an injury, it has a flow on effect to their family, their friends and their workmates so it is always better to prevent the injury happening in the first place," says Whitaker.

Most Common Injury Types and Regions

"Our research shows that most injuries are predictable and therefore preventable and the farming environment is no different."

The leading regions for work-related agricultural claims in 2025 were Waikato (2,715 claims), Canterbury (2,490), Hawke's Bay (1,518) and Southland (1,507).

The age group with the highest number of work-related agricultural claims in 2025 was the 30-34-year-olds (1,933 claims) ahead of the 35-39 age group (1,851).

A total of 64% of injuries were soft-tissue injuries and the parts of the body most impacted were the lower back/spine, finger/thumb or shoulder.

Improving Safety Systems on Farm

"New Zealand farmers are some of the best in the world at what they do - they spend their lives growing our food and milk and helping our economy. But they're not so great at looking after themselves," says Whitaker.

"Farmers can get better at putting in systems to look after the most important asset on the farm, themselves and those who work in the business."

ACC partners with Farmstrong to help prevent injuries in the agricultural sector and the wellbeing organisation will have a stall at Fieldays.

Whitaker encourages all farmers to take the time to engage and think about how they can apply some of the principles from Farmstrong into their operation.

Farmstrong is a nationwide wellbeing programme for the rural community. Their aim is to help New Zealanders to live well to farm well.

Former All Black Sam Whitelock is a Farmstrong ambassador, and he will be at Fieldays.

"To farm well, you need to live well. And that's where the five ways to wellbeing comes in. I've made them part of my life and I encourage you to do the same," says Whitelock.

www.farmstrong.co.nz 

The company, owned by David and Sue Fish, employs 12 staff drawn from all over the world and looking after them is the owners' top priority.

Annual Awards Recognise On-Farm Excellence

Last month, David and Sue Fish, their staff and group of sponsors gathered for their annual awards luncheon to honour each member for another year of achievements, dedication and teamwork.

Prizes were awarded for farms that produced the top performing cows, top quality milk and reared the best calves.

Westmorland operations manager Dries Verrycken says the 2025-26 season was a standout one for the company.

He told Dairy News that the Westmorland business built on teamwork, humility, and a deep passion for the dairy industry.

"What began as a small, determined team has grown into a multicultural powerhouse - people who show up each day with pride, professionalism, and genuine care for the land, the animals, and each other."

Strong Culture and Work-Life Balance

"A defining part of Westmorland Estate Ltd's culture is its commitment to work-life balance. The business proudly operates on a 5x2 roster, with controlled hours to ensure every team member gets home on time.

"Westmorland Estate Ltd believes that great results come from people who are rested, supported, and able to enjoy life outside the farm.

"This philosophy has strengthened morale, improved performance, and created a workplace where people genuinely thrive."

Team Performance Across Three Farms

This year, the Westmorland team - comprising Dries Verrycken, Paola Verrycken, Daniel Bautista, Jezer Ragasajo, Emilio Ayerdi, Barbara Hinton - took out the top prize for best cows and lowest somatic cell count and the farm pride award.

The Sandhurst team - comprising Dries Verrycken, Paola Verrycken, Daniel Bautista, Jezer Ragasajo, Emilio Ayerdi, Barbara Hinton - won the best calves award.

The Somerset team - made up of Aubrey Fish, Jose Urbina and Steven Munro - scooped the lowest empty rate award.

Recognising Industry Partnerships and Support

Prizes were provided by Rabobank, Fonterra, Baker Tilly, GEA, FIL, LIC, DairyNZ, Agrihealth, Donaghys, Horwen, PGG Wrightson and Vet Clinic Morrinsville.

Verrycken says Westmorland Estate has spent years building strong, meaningful relationships with sponsors.

"This relationship is grounded in trust, respect, and shared passion for dairy farming. These sponsors are more than supporters; they are part of the Westmorland Estate Ltd team."

HR Leadership and People Development

The annual awards luncheon is organised by human resources manager Paola Verrycken.

Sue Fish says the annual awards celebration has become a defining moment for the estate.

She says Paola Verrycken's commitment to people, culture, and strong relationships ensures the event continues to evolve.

Fish says Westmorland Estate Ltd enters the future with confidence and gratitude.

"The achievements of 2026 are not just awards - they are the result of people working together, supporting each other, and taking pride in the dairy industry they love.

"Our philosophy remains simple and powerful: strong relationships, strong teamwork, and strong values create strong results," she says.

Federated Farmers says its election platform, Backing Kiwi Farmers, is a practical blueprint for whichever parties form the next government.

President Wayne Langford says this isn't just another wish list of a collection of vague ideas.

"It's a clear roundup built by farmers to double farm productivity, cut costs, and improve environmental outcomes."

The wish-list was launched to coincide with National Fieldays, which gets underway in Hamilton on Wednesday.

The five-point plan focuses on: cutting the cost of farming, enabling technology and infrastructure, empowering community conservation, supporting young farmers, and fixing local government.

Cutting Costs and Improving Flexibility

To cut costs, farmers want ten new permitted activity standards for farming and incoming guarantee flexible land use in every region, to stop incentivising whole-farm conversions to permanent carbon forestry, use farm plans to replace resource consents and introduce no new taxes for farmers.

"These priorities are all about making sure farmers have the right rules and government backing to improve profitability and grow the economy," says Langford.

Each of those high-level themes has very specific and practical requests for whoever forms the next government.

"We've made our asks extremely clear, so politicians have absolutely no doubt what farmers are actually looking for this election," he says.

Building on Previous Election Commitments

Federated Farmers released a similar list of election priorities in 2023, which it says were geared towards restoring rural confidence.

Langford claims they got all 12 of those priorities across the line over the past three years.

"As a result, while costs are still high and some regulations are still a niggle, rural communities are feeling a lot more positive about the future.

"That's why we've shifted focus, launching 2026 election priorities designed to continue that momentum and unlock the full potential of rural New Zealand."

A Call for Political Engagement

Federated Farmers wants political parties to engage with its proposals over the coming months.

"This election platform is ultimately about backing the people who produce the food, fibre and products that keep this country moving," Langford says.

"Farmers are problem-solvers by nature. Give us the tools, geet out of the way, and we will deliver a stronger, more productive New Zealand for future generations."

Widely respected across New Zealand’s rural industries, Maber is well known for transforming his family’s modest retail machinery business in the heart of dairy country, Maber Motors, to establish the Power Farming Group — one of New Zealand’s largest privately owned, tractor and farm machinery importers and retailers.

Building Power Farming from Local Roots

After joining Maber Motors soon after leaving school in the 1960s, Maber helped steer the company through growth, innovation and expansion, with a turning point in the 1970s when he recognised that farm mechanisation in NZ was changing rapidly and importing and distributing agricultural machinery brands at scale could become far bigger than a local dealership business.

Today, Power Farming has grown to become a major multi-national operation across NZ, Australia and the USA, built on strong partnerships, with local joint-venture ownership models, long-term supplier relationships and an unwavering focus on people.

In New Zealand, Power Farming operates across 20 outlets, employing around 350 people and approaching $300 million in annual turnover.

Despite challenging market conditions, the business has experienced strong growth over recent years, driven by its joint venture partners, longstanding relationships, customer support and investment in local teams.

A Unique Partnership Model

Maber says he is proud of the people behind the group’s businesses and the partnerships that have driven Power Farming’s success.

“Our business has always been about people, partnerships and backing local communities. We’ve built a model that empowers local people to invest in the business, grow alongside us and genuinely share in the success. If our joint venture partners are not succeeding, then we are not succeeding either.”

The Australian business, established from the ground up more than 25 years ago, has grown into a business of similar scale to New Zealand and today supports more than 200 independent dealers through a nationwide distribution network.

Power Farming entered the US market in 2018 with the world renowned Deutz-Fahr tractors and recently celebrated achieving the milestone of 5000 tractor sales, with the current focus of hitting 10,000 sales by 2030.

Maber credits much of the company’s success to the strength of the people around him, commenting: “I’ve fortunate to have been supported by our outstanding board members, three world-class CEOs across our operations, alongside incredible staff and some of the very best people in the industry.”

A Family Business

Family also remains at the heart of the business, with Geoff’s sons Craig and Brett Maber both holding leadership roles within the company. Geoff says seeing the business continue into a third generation is one of his proudest achievements.

“It’s incredibly rewarding to have Craig and Brett involved in the business and helping lead the next chapter of Power Farming,” say Geoff.

He also acknowledges the support of wife Linda, describing her as a constant source of support throughout the journey and someone who has helped bring balance, perspective and strength to a life heavily centred around business and agriculture.

Reflecting on the journey, Geoff paid tribute to his father Laurie Maber, describing him as a great teacher, mentor and role model whose values continue to shape the business today.

“This all started with my father Laurie. He was a self-made man, a great teacher and someone who instilled strong values, hard work and integrity into the business. Those values are still deeply embedded in Power Farming today.”

His recognition in the King’s Honours reflects not only the remarkable growth of Power Farming, but also the lasting impact he has had on New Zealand’s rural economy and agricultural sector over more than six decades.

Maber is still very actively involved in all areas of the family business with no plans to retire soon and says his more than 60-year journey in the industry has been both humbling and immensely rewarding.

“If there’s one thing I’ve learnt in business, it’s that you have to have the energy to win.”

Woodford told Dairy News that it was also a privilege to stand alongside others from agriculture and agribusiness who have previously received the award.

"I have also been humbled by all the nice comments I have been receiving since the Honours List was announced.

"I am also aware that there are a lot of other people who equally deserve to be recognised."

Career Shaping New Zealand Agribusiness

Woodford was Professor of Farm Management and Agribusiness at Lincoln University for 15 years through to 2015.

He is now principal consultant at Agrifood Systems Ltd.

He's a regular media commentator on the agribusiness sector.

Agriculture in a Strong Position

Woodford says the current state of New Zealand agriculture and agribusiness is that the sector is overall in good stead.

"The major players are more efficient and in much better stead than ten years ago.

"However, there is a need for everyone in the sector to use the current record prices within animal-based industries to build financial resilience."

Preparing for Long-Term Global Change

Woodford says we "are very much in a changing world" and we too will need to change.

"In less than 20 yeears, all our major markets will be exhibiting major population declines. China, Japan, Korea, Taiwan and Thailand are already exhibiting population declines.

"Other countries will soon follow, with all major markets already exhibiting birth numbers below replacement level of 2.1 children per woman. In that emerging world, our agribusiness industries will have to look very different than now."

A practical placement with a local Waikato Vet Club - then Animal Health Centre, Morrinsville - under the tutorship of Scott McDougall led to a job offer.

"I was offered a job and have never looked back as I am still working within this organisation, now Anexa Vets," she told Dairy News.

This month, Roberts was one of several rural professionals honoured in the King's Birthday Honours List.

Roberts became a Member of the New Zealand Order of Merit (MNZM) for her services to the dairy industry and community.

She says she feels extremely humbled and overwhelmed.

Contributing to Major Dairy Industry Programmes

During her career as a vet at Anexa, Roberts has been involved with many dairy industry projects.

These include working through DairyNZ programmes like Feedright, Healthy Hoof and the redevelopment of the national herd fertility resource the InCalf programme.

She has worked in both the research (Cognsoco) and veterinary divisions of Anexa.

For the past 15 years, she has also been a farm advisor through both Anexa and Headlands (Intelact Group).

In 2024, Roberts was named the Fonterra Dairy Woman of the Year for her service to the farming sector.

Passion for Supporting Farmers

Roberts says she grew up on sheep and pig farms in Australia and has always loved working alongside farmers.

"I am passionate about the contribution that vets can have, not just at the cow and herd level but also with the farm team."

Optimistic About Agriculture’s Future

Roberts believes it's a great time to bein involved in agriculture in New Zealand.

"Working alongside farmers, I get to see firsthand every day how much they care for the land, their cows and the people that work with them.

"However, that doesn't mean that there isn't always room for improvement, as we are always learning and growing," she adds.

That’s how Labour’s former agriculture minister Damien O’Connor described the recent Budget.

He says there was very little in the Budget for any sector and says that the main gain was the news of investing $79 million in new money to tackle the wilding pine problem. But he adds that this money is coming out of the existing budgets of MPI and the Department of Conservation.

“This is a significant amount of money that is coming out of the already squeezed budgets of these departments,” he told Dairy News.

O’Connor says the Minister of Finance seems determined to squeeze out what money she can from departments to pay for the tax cuts and tax breaks that were given earlier in the year.

He says there appeared to be some good education initiatives, but there didn’t appear to be anything for health that specifically targeted the additional challenges of rural health, in particular the distances that people in isolated communities have to travel for such services.

O’Connor says a recent report shows that quality rural infrastructure is a key component to grow our industries. He says while there is money, a large chunk of it is being directed at one project – the Waikato expressway.

“The roading network is critical to all our sectors but it’s under severe stress and degradation and increasing pressure from heavier trucks that the roads were never built for. The problem is compounded by an increasing number of climate events that undermines the integrity of the system,” he says.

According to O’Connor, some of the roads are still basically horse and cart tracks that were built more than 100 years ago.

“As I see it, most people in rural NZ would take a hard look at this Budget and consider it miserable at a time when we need investment, particularly in science research and development,” he says.

Budget days used to be exciting events - mainly with people trying to guess whether the price of alcohol or tobacco would rise in price - but for many years, this one included, it was a boring affair.

Most of the main announcements were made in advance leaving the Minister to read her speech and the Opposition parties to pick holes in it.

$437 Million for Agricultural Emissions Technology

For the rural sector, the news of more money to deal with wilding pines came before the Budget.

Agriculture Minister Todd McClay was left to announce that $437 million will be spent over four years to accelerate the development, availability, and use of new tools and technologies to reduce on-farm agricultural emissions.

Also, $266 million over four years is allocated for the primary sector growth fund, and $40.5 million  - again, over four years - for farmer-led catchment groups.

Ongoing Support for the Ministry for Primary Industries

McClay says the Budget confirms $4.77 billion in baseline funding over the next four years for the Ministry for Primary Industries (MPI) to support the primary sector and protect the funding.

"We are working hard alongside farmers and growers to achieve more with less. Alongside investing in innovative technologies and land management initiatives, we're supporting farmers and growers to boost productivity and their long-term resilience," he says.

$400 Million for Climate and Infrastructure Resilience

The other item of interest to the rural community was the setting aside of $400 million to provide resilience to keep critical routes open during and after adverse weather events.

Some of the projects singled out for funding include SH2 Waioweka Gorge between Gisborne and Opotiki and the Awakino Gorge on SH2, north of New Plymouth.

Closure of these roads due to adverse weather has put a huge strain and cost on local people and businesses.

In the South Island, work to be carried out on SH60 the Takaka Hill road will also come as a relief to locals.

Infrastructure Minister Chris Bishop says this investment allows for the strengthening of many of the weak points in the roading network, aiming to do this before they fail again, reducing the cost of rebuilding them afterwards.

"These are roads that communities, freight operators and tourists rely on every day. When they close, the impacts are felt far beyond the immediate area," he says.

Sound Thinking - Feds

Federated Farmers has come out in support of the roading initiative, saying for some time they have been calling for more funding for rural roads and key regional freight and access routes.

Feds spokesperson on infrastructure Mark Hooper says the move is "sound thinking".

He says this is in line with the truism that a 'stitch in time, saves nine' and building better resilience ahead of the next flood or storm makes sense.

Hooper says the cost of repeated highway and rural road patch-ups quickly mount.

"We can't continue to see communities like the East Coast or Golden Bay cut off every time a major rain event occurs. Ultimately, however, if experience shows a route or piece of public infrastructure continues to be highly vulnerable to weather events, investigation and funding of alternatives if needed," he says.

It follows the release of the industry body’s quarterly update, which forecasts a breakeven price of $8.79/kgMS.

Breakeven Milk Price Climbs Higher

DairyNZ also forecasts that farm working expenses will likely hit $6.19/kgMS, up from a forecast $5.84/kgMS this time last year, while operating profit will drop to $3.88/kgMS.

Mark Storey, DairyNZ’s head of economics, says this is largely due to the crisis in the Strait of Hormuz.

He says that the crisis has caused increases in prices for fuel, feed, and fertiliser, but also indirect price increases.

DairyNZ Adopts Scenario-Based Forecasting

“For the first time in doing this forecast, we’ve presented our analysis as a package of scenarios,” Storey told Dairy News.

One scenario, the faster recovery scenario, would see the Strait reopen in July 2026 and export restrictions on energy and fertiliser lifted by December 2026.

The expected scenario sees the Strait reopen in August 2026, with restrictions lifted by May 2027.

Meanwhile, the prolonged disruption scenario has the Strait reopening in September and restrictions lifting by December 2027.

Storey says that scenario would also likely see interest rates rise as well.

Why Long-Term Cost Inflation Matters

“The prolonged disruption scenarios aren’t unrealistic,” he says.

“The consequence of that scenario is that it would take longer for things to come back to normal,” he adds. “In fact, some of these price increases may become sort of a new normal.”

“The longer the disruption takes matters because what might become a short… shock effectively isn’t only embedded in the prices this season but would come into the 2027/28 season as well.”

He says that, typically, after a shock – for example, the Russia-Ukraine conflict or the Covid-19 supply chain disruptions – prices don’t return to the baseline that existed prior to the shock.

“You’re getting this upward stickiness and that’s what concerns us with this current crisis… it takes a long time before these prices come back to their pre-shock baseline, if at all,” Storey says.

He says that, while it’s not always the case, the risks around those price shocks tend to concentrate around springtime.

DairyNZ Recommends Conservative Cashflow Planning

“We are strongly recommending that farmers look at different scenarios in their cash flow forecasts, that they don’t plan for the best case, that they actually have some more pessimistic scenarios in place that they’ve identified and they be very selective with their nitrogen fertiliser use.”

He says farmers also need to plan for higher fertiliser and feed prices to persist into the 2027/28 season.

The good news, Storey says, is that farmers are coming into the 2026/27 season off the back of a good production year which had a good milk price, meaning they are in relatively good cash positions.

“It’s all about using that buffer they’ve built well in a season where the margins may become much more constrained.”

But she notes that New Zealand farmers start the season with a marked squeeze on margins, driven by persistent and broad-based cost inflation.

"The ongoing closure of the Strait of Hormuz - now approaching its fourth month - is creating conditions reminiscent of past stagflationary shocks," she says.

"Initial impacts, particularly higher energy prices, are now flowing through into key upstream dairy inputs, including diesel, fertiliser, and industrial goods. Second-round effects are also emerging, with elevated energy costs feeding into broader inflation expectations.

"From here, the outlook becomes significantly more uncertain, warranting scenario-based planning.

"The key variablee is the duration of disruption: the longer the closure persists, the slower and more uneven the normalisation of energy and input markets is likely to be."

Higgins says while their base case scenario does not currently assume a prolonged closure of the Strait of Hormuz, the risk of a more extended disruption - beyond what markets are currently pricing - cannot be ignored.

“Inflationary pressures and weakening consumer sentiment are already testing demand resilience in dairy markets, and we expect this to continue over the months ahead.”

However, she says it’s also possible that, in a prolonged disruption scenario, global food import demand could rise sharply in a bid for food security, as energy-importing nations move to secure supply amid deteriorating terms of trade.

“This would likely support dairy commodity prices, with milk powder potentially returning to prior cycle highs and lifting New Zealand farmgate milk prices in the near term.

“The volatile operating environment farmers are now in underscores the need for wider-than-usual scenario planning across both costs and revenues, and for caution in treating commodity price spikes driven by geopolitical shocks as structural rather than temporary.”

While Fonterra's forecast mid-point olf $9.75/kgMS signals a strong start, ANZ is forecasting $9.20/kgMS.

Dilly says they expect downward pressure on dairy prices and upward pressure on the NZ dollar as the season progresses.

Downside risks include a global economic downturn, which would decrease dairy demand.

Global Economic Slowdown Remains a Key Risk

Dilly says that if the Middle East conflict gets resolved, lower oil prices may put downward pressure on dairy and many other commodities as oil and gas exports return to normal.

"It would also likely push the NZ dollar higher, hurting farmgate returns demominated in NZ dollar."

There are also upside risks including an emerging El Nino, which usually leads to poor milk production in the Southern Hemisphere.

The ongoing Middle East conflict also has the potential to lead all commodity prices sharply higher, including dairy.

Dilly says dairy prices are often correlated with crude oil and other commodities.

Profit Margins Could Remain Tight

"In addition, food producers globally are facing higher fertiliser prices, which in the end will be passed onto consumers."

Dilly believes the cost of production for many farms this season will be different.

"The conflict in the Middle East has lifted costs for diesel, fertiliser, and most other petrochemical-derived farm inputs.

"While some prices have drifted lower since peaking at the height of the conflict, diesel retail prices are currently up 70% in New Zealand relative to pre-conflict levels.

"In addition, interest rates are higher as financial markets adjust to the prospect of higher inflation and wider risks to the global economy."

DairyNZ Raises Breakeven Milk Price

DairyNZ recently updated their breakeven milk price for 2026/27, revising it up from $8.36/kgMS to $8.79. 

Dilly says that while their forecast is higher at $9.20/kgMS, this will still be uncomfortably close to breakeven for some farms.

"There is a wide range of uncertainty around any milk price forecast at this point in the calendar, and a wide range of cost structures across farms, so a milk price below breakeven for some is very possible.

"At any rate, narrower margins will put cost management into focus this season."

Current president and Golden Bay dairy farmer Wayne Langford is eyeing an unprecedented fourth year in the top job.

This sets up a potential leadership race with vice-president Colin Hurst who says he's standing.

Wayne Langford Considers a Fourth Year as President

Behind the scenes, Langford's desire to do another year is raising more than a few eyebrows among many past and present members of the organisation.

Some are perplexed, while others are said to be deeply unhappy and concerned about the move, saying it has the potential to cause something of a split at the Feds' AGM in Auckland.

For most of the Federation's 82 years, the term of all key officers, including that of president, has been set at three years.

In its early days it was four years, but this quickly changed and has remained three years ever since.

Dairy News understands that this is the first time a sitting president has openly indicated a desire to stand for an extra year.

Langford told Dairy News, "that if there was support from members, I am keen to stand".

Questions Around Governance and Constitutional Process

This all began at the Federation's National Council meeting, held last November in Wellington.

The council consists of the national board, the provincial presidents and the chairs of the industry groups such as dairy, meat and fibre and arable.

It's understood that at that meeting, a motion from the floor was passed indicating that if a sitting president or vice president sought an extra year, this would be possible under the constitution.

However, in recent months, the legality of such a motion has been called into question with suggestions that advance notice had to be given for any change.

A Rare Competitive Election

With the AGM just a few weeks away, it's uncertain what might transpire.

The only certainty is Feds current vice president, Colin Hurst, has already lodged his nomination for the presidency. In theory, he as national vice president is the natural successor to Langford.

Still unclear is Langford's motives for seeking an extra year.

Dairy News is only aware of one instance in the past when this happened and it was apparently because no one was interested in the role.

What is also unclear is what support Langford may have if an election was held.

For the most part, Feds AGMs have been passive set piece events. Only in 2011 at Rotorua was there a challenge in which Bruce Wills beat three other challengers for the top job.

Leadership Style and Legacy

Langford has been a high-profile president of the Federation and whether the grassroots members want another year of his style of leadership is up for debate.

The alternative is the status quo - the three-year term and a new person in the job.

Whatever the outcome, Langford's apparent bid for an extra year, may yet define his legacy as president of the organisation.

Based at Site E80, LIC’s programme will cover genetics, animal health, and herd improvement, giving farmers the chance to speak directly with specialists and discuss what’s happening in their own system.

MINDA sessions will focus on helping farmers get more value from their data through better integration with on-farm tools and reducing double-handling of information.

As part of the programme, former Kiwi rugby league captain and Waikato farmer Tawera Nikau will host a special session on resilience, leadership and mental wellbeing, drawing on his experiences in elite sport, farming and life after the motorcycle accident that resulted in the loss of his right leg.

Numbers for the event will be limited, with registrations available through the LIC website.

LIC will also be part of the Science for Farmers hub at Site E38, showcasing work underway in areas such as thermal tolerance and how technology is helping accelerate genetic gain.

Farmers visiting the site can bring along their participant code, grab a coffee and something to eat, and make use of the kids’ area while they’re there. Visitors can also have a go at the LIC dartboard for the chance to win merch and credit on their LIC account.

Session timings, including Tawera Nikau’s event, will be available on the LIC website and across LIC social media channels.

Today, the co-operative released its third quarter business update, which revealed a Total Group operating profit of $1.8 billion for the year-to-date, up $103 million on the same time in 2025.

Higher Farmgate Milk Price Amid Strong Sales Performance

The forecast Farmgate Milk Price midpoint for the current season is unchanged at $9.70 per kgMS, with the range narrowing to $9.60-$9.80 per kgMS.

The Co-operative has also announced an opening forecast Farmgate Milk Price for the 2026/27 season of $9.75 with a range of $8.00-$11.00 per kgMS to reflect potential impacts across the season from ongoing geopolitical risks and inflationary pressures. 

Richard Allen, who took over as Fonterra's chief executive earlier this month, says strong milk production and high shipment volumes have underpinned the result.

"Milk production is up considerably this season, and despite disruption in global supply chains, our sales book is well contracted and our shipping volumes are strong, with the highest third quarter shipment volumes in a decade," Allen says.

“As we look ahead to next season, we expect milk collections to remain high, in line with this season. Our in-market sales teams are anticipating solid demand from across the regions despite potential volatility, and this is reflected in our opening forecast range." 

Profit Growth Driven By Ingredients and Foodservice

A disciplined focus on strategy has driven a Total Group year to date operating profit of $1.8 billion, up from $1.7 billion the prior year, and profit after tax of $1.1 billion, equivalent to 65 cents per share.

Adjusting for Mainland’s result to reflect the Co-operative's underlying business, the Co-op delivered $946 million profit after tax, equivalent to earnings per share of 57 cents, up from 53 cents this time last year.

The Ingredients business benefited from ongoing protein demand in the US and Europe, while Foodservice continued to achieve both volume and margin growth.

Mainland Sale Supports Strategic Shift

Allen says the Co-op is committed to delivering on its strategy and growing value for farmer owners as a global B2B dairy provider.  

“During the quarter, we completed the sale of Mainland Group and returned $3.2 billion to shareholders and unit holders," he says.

"This marked a significant step in the delivery of our strategy, with the Co-operative firmly focused on growing our high-value Ingredients and Foodservice businesses."

Major Investments Progressing

Allen says the co-operative has advanced work on its $35 million pastry butter sheet capacity at Edgecumbe.

The co-operative has also reached the product validation stage on its $75 million Studholme protein hub, and progressed on its $75 million butter expansion at Clandeboye and $150 million UHT cream build at Edendale. 

“I’m also pleased to announce that we’ll be progressing with the planned expansion of our organic business into the South Island, following strong interest from farmers wanting to join our successful organic programme," Allen says.

The co-operative has also declared a forecast Organic Milk Price range of $13.90 - $14.10/kgMS, with a record midpoint of $14/kgMS.

"Our opening forecast for the 2026/27 season is $13.00 - $15.00 per kgMS, also with a $14.00 per kgMS midpoint, reflecting the value customers see in our organic farmers’ milk," Allen says.  

“These initiatives all reflect real momentum in the Co-op’s performance as we head into the final quarter of the financial year.”

Outlook Remains Positive Despite Global Uncertainty

Allen says that looking ahead, Fonterra has strong foundations and a clear strategy to deliver value through its Ingredients and Foodservice businesses.

"Our full year earnings guidance reflects the strong shipment volumes expected in the final quarter of the year," he adds.  

“However, we acknowledge the uncertainty caused by the ongoing conflict in the Middle East. Like our farmers, and others around the world, we are experiencing cost inflation and shipping disruptions. 

“We are confident that our deep relationships with customers and logistics partners will continue to help us navigate these challenges,” Allen concludes.