Independent Report Validates DairyNZ's 7x Return on Investment from Farmer Levies

An independent economic review conducted by Nimmo Bell has confirmed the substantial value derived from DairyNZ's levy revenue, collected between the 2020/21 and 2025/26 periods. The report found that the $341 million gathered resulted in an estimated $2.98 billion in total value for the New Zealand dairy sector. This translates to a remarkable 7x Return on Investment (ROI), equivalent to a direct return of 26 cents per kilogram of milk solids (kgMS) annually.

The analysis highlights the importance of targeted dairy research and development, with the benefits split almost evenly between productivity gains and costs avoided. Approximately 45% of the value came from on-farm productivity improvements, while the remaining 55% was attributed to avoided costs.

In 2025, the levy contributed $69.8 million, representing 83% of DairyNZ’s total revenue. The levy rate, which had been stable at 3.6c/kgMS since 2009, was recently increased to 4.5c/kgMS to ensure financial stability as income fluctuates with milk production.

Significant investments were made in biosecurity, with $77.1 million allocated to these efforts, which are now estimated to have delivered $709 million in value. This showcases the economic protection provided to the agribusiness community in New Zealand.

DairyNZ Chair Tracy Brown emphasized the report as a step towards greater transparency and accountability, aligning with the organization’s strategic focus on farm productivity, adaptability, and sustainable dairying.

This comprehensive report was commissioned in response to farmer calls for transparency regarding fund allocation and supports the upcoming six-year levy vote in early 2026. It underscores the levy’s role in maintaining New Zealand dairy's competitiveness in the global market.