DairyNZ to Increase Milksolids Levy for the First Time in 16 Years

Highlights:

• DairyNZ will raise its milksolids levy from 3.6c to 4.5c/kgMS starting June 1
• The new rate will remain in place for at least three years
• Over 1,500 farmers submitted feedback during the consultation process

Levy Increase Set for New Dairy Season

DairyNZ Ltd, the industry body representing New Zealand’s dairy sector, is set to raise its milksolids levy for the first time in 16 years. At the time of writing, the levy has remained at 3.6 cents per kilogram of milksolids (kgMS) since 2009. Starting from June 1—the beginning of the new dairy season—the rate will increase to 4.5 cents per kgMS.

Farmer Consultation Drives Change
The decision follows an extensive consultation process with dairy farmers across the country. More than 1,500 formal feedback submissions were received, reflecting widespread engagement from the farming community. The increased levy will be held at the new rate for a minimum of three years, giving farmers and the organisation clarity and financial stability for planning purposes.

Supporting Research and Development
According to DairyNZ, the additional funds will be directed toward key industry initiatives, including scientific research, biosecurity, environmental support, and tools to help farmers improve on-farm performance. Under the Commodity Levies (Milksolids) Order, every dairy farmer in New Zealand contributes to the levy, which is reviewed by a farmer vote every six years. The last vote took place in 2020.

Looking Ahead
DairyNZ has assured farmers that the rate increase is necessary to continue delivering value and innovation to the sector. The organisation believes this step will enable it to better support the evolving needs of New Zealand's dairy industry.

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