Delivering For Farmers As They Deliver For Economy
New Zealand dairy farmers are ending the 2024/25 season on a high, with increased production and record milk prices delivering real gains to the rural economy and every Kiwi household, Agriculture Minister Todd McClay says.
'Dairy exports are a cornerstone of New Zealand's economy, contributing $4,700 for every New Zealander. This season's strong performance is set to add an additional $4.5 billion in farmgate revenue for 2024/25. This is good news for farmers, rural towns, and our economy as a whole,' Mr McClay says.
With the final milk price forecast tracking around $10 per kilogram of milk solids, farmers are seeing the highest returns since 2021/22—and all signs point to another strong season ahead.
'This is the result of hard work on-farm, smart investment, and a global market that continues to demand high-quality, grass-fed New Zealand dairy,' Mr McClay says.
The Government is doing its part to ensure more of that value returns to the farm gate by removing barriers, restoring confidence, and improving the regulatory environment for dairy. Already we have:
Started the process of replacing the National Policy Statement for Freshwater Management
Moved to fundamentally reform the Resource Management Act
Halted unworkable winter grazing, stock exclusion, and Significant Natural Area (SNA) rules
Begun rebalancing Te Mana o te Wai to restore the rights of all water users
Removed agriculture from the Emissions Trading Scheme
Disbanded Labour's He Waka Eke Noa initiative
Repealed the punitive Ute Tax
Commenced an inquiry into rural banking
Halted Labour's costly Freshwater Farm Plans
Started and completed a number of Free Trade Agreements that offer farmers greater opportunity in new markets.
'Rural communities are the engine room of this economy. When farmers are doing well, it flows through to local businesses, regional jobs, and a growing economy for all New Zealanders,' Mr McClay says.
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