A new report says dairy supports New Zealand’s economy
Sense Partners’ updated analysis, commissioned by DairyNZ and the Dairy Companies Association of New Zealand (DCANZ), describes dairy as one of New Zealand’s most significant economic sectors. The report says the industry supports employment, wages, businesses and local investment, particularly in regional areas where farming and processing are concentrated.
Dairy exports totalled $28.8bn in the year ended December 2025, making the sector New Zealand’s largest goods-export category by a substantial margin. Since 2021, dairy has generated an additional $8.3bn in export revenue, according to DCANZ executive director Kimberly Crewther. She said that this represented almost half of the growth in the country’s total goods exports.
The sector directly provides more than 51,000 jobs nationwide. Its regional contribution varies considerably: dairy accounts for 12.1% of West Coast GDP, 10.6% of Southland GDP, 8.3% of Taranaki GDP and 7.8% of Waikato GDP. In South Taranaki, one in four jobs is connected to dairy. Waikato has more than 10,000 dairy employees, while dairy income represents nearly half of all wages paid in the Waimate district.
Sense Partners estimated dairy-related GDP at $2.807bn in Waikato, $1.967bn in Canterbury, $955.4m in Southland and $912.7m in Taranaki. The estimate for the West Coast was $300.9m, and the sector’s share of regional GDP there was the highest among the regions listed in the report. Other regional estimates included $935.5m in Auckland, $700.8m in Manawatu-Whanganui, $635.8m in Otago, $531.8m in the Bay of Plenty and $489.4m in Northland.
The report also records dairy’s links with industries outside farming and processing. Dairy farming ranks among the ten largest purchasers of output in 35 other sectors, while dairy processing holds a top-ten position in 25 sectors. Spending by farmers and processors supports activity in transport, manufacturing, professional services, technology and rural contracting.
Mark Storey, DairyNZ’s head of economics, said the sector’s benefits extended beyond farms. “Backing dairy is about backing regional communities, economic growth and a more productive New Zealand,” he said. He added that a competitive operating environment, including dependable and affordable energy, would be important to the sector’s ability to provide jobs, export income and economic growth.
The report’s GDP figures use the latest available data. Official GDP-by-industry figures for the year ended March 2025 were not due until November 2026, creating a 20-month reporting lag. In its previous 2023 study, Sense Partners estimated farming and processing GDP because official figures were unavailable. Later official data put the sector’s overall size at $11.6bn, compared with the earlier estimate of $11.3bn, although the division between farming and processing differed.
