Labour Shortage Remains a Key Concern for New Zealand Dairy Farmers

New Zealand's dairy farmers are currently more preoccupied with labour shortages than with geopolitical events, as stated by Karl Dean, the Federated Farmers dairy chair. Dean noted that the industry benefits from robust grass growth, a favorable milk price, a supportive regulatory environment, and stable costs, all contributing to positive farmer morale.

Despite these positives, the availability of skilled labor remains a pressing issue. Dean emphasized, "We're keeping a close eye on immigration and labour settings," reflecting the sector's dependency on effective workforce policies. This sentiment is echoed by Federated Farmers president Wayne Langford, who described the difficulty in attracting motivated workers to rural areas, despite rising national unemployment rates.

The latest Federated Farmers Confidence Survey, released last week, supports this concern. It revealed that while 70% of the surveyed dairy farms reported profitability, the highest since the survey began in 2009, finding competent staff continues to be challenging. Langford stated, "It's a message we keep sending to successive governments," highlighting the critical role of primary industries in the economy.

The survey, which included responses from nearly 650 farmers, also showed a stable profitability rate of 81% for dairy farms, with significant improvements in profitability for meat and wool farms. Arable farms, however, continue to lag behind, showing only a minor improvement in profitability since the July 2025 survey.

Overall, the recovery from the 2023/24 downturn appears well-established across most sectors, yet the labour supply remains a significant hurdle for the dairy industry.