Taranaki's Economic Shift: From Oil and Gas to Dairy Dominance

A new report reveals that Taranaki earned $3.6 billion in exports for 2024, driven primarily by dairy, oil and gas, and meat products. The report highlights a pivotal transformation in the region's export dynamics, with dairy now generating three times more earnings than oil and gas, reversing past trends. In 2008, oil and gas exports significantly outpaced dairy; however, by 2024, dairy exports reached $1.8 billion compared to $610 million for oil and gas. This shift has been influenced, in part, by rising milk solids prices. Taranaki's GDP per capita ranks third in New Zealand at $85,362 as of March 2024, largely due to gains in the dairy sector. Despite the historical dominance of oil and gas, agriculture remains significant, with the broad Forestry, Fishing, Mining, Electricity/Gas category contributing $2.1 billion to the regional GDP, surpassing agriculture's $848 million.

ANZ New Zealand chief economist Sharon Zollner emphasizes the importance of Taranaki's strong manufacturing base and agricultural backbone in sustaining economic stability. ANZ's Lorraine Mapu highlights manufacturing's emergence as a vital growth driver, with enterprises like Taranakipine leading in innovation. Mapu notes that dairy farmers' diversification and focus on high-value exports have enhanced their economic contribution. She calls for coordinated efforts across industries, government, and finance to fully realize Taranaki's potential, capitalizing on its manufacturing competencies, skilled workforce, and land use diversification to drive future growth.