All farmers who supply milk to a dairy company pay a levy to DairyNZ. This includes sharemilkers and dairy farm leaseholders. The milksolids levy is collected under the terms of the Commodity Levies (Milksolids) Order 2020, which caps the levy at a maximum of 5c/kgMS.
Of the milksolids levy collected by DairyNZ, up to 0.8 cents ($14.5M) is on-paid to OSPRI for the TB free programme.
The levy supports DairyNZ delivery across critical areas of value to farmers including research, science, evidence-based advocacy and extension.
Following consultation with farmers in Feb-Mar 2025, the DairyNZ Board set a new milksolids levy rate at 4.5 cents per kilogram of milksolids for the season beginning 1 June 2025.
The previous rate of 3.6c/kgMS had been in place since 2009. More information is here.
Hear from DairyNZ Chair, Tracy Brown, and Chief Executive, Campbell Parker.
All dairy farmers who pay a levy on milksolids can vote on whether to continue the levy. The next levy vote will be in 2026. Further information on the upcoming vote will be shared well in advance.
Our vision is to make the levy the best investment of every New Zealand dairy farmer.
Grounded in scientific excellence and research, the programmes funded by your levy help create practical farm-systems solutions and advocate for farmers with central and regional government. Your levy does for the sector what no farmer can do alone.
The DairyNZ Board reviews the rate every year against investment commitments.
How is the milksolids levy calculated?
The levy is calculated on the quantity of milksolids supplied to the dairy company. For example, here’s how the levy is calculated for an average farm milking 448 cows at the levy rate of 3.6c/kgMS.
(448 cows x 400 MS per cow) x (3.6 cents annual levy / 100) = $6,451.20 (+GST) per year.
The increase in 2025 from 3.6c to 4.5c increases a farmer’s annual milksolids levy payment by $900 per 100,000 MS.
How much is raised through the levy each year?
The total amount raised through the levy each year fluctuates as it is dependent on the quantity of milksolids supplied to dairy companies. For the year ended 31 May 2024 DairyNZ collected $67.8 million from New Zealand dairy farmers. From 2025 this is expected to be approximately $84.7 million a year.
$14.5 million of the total levy is collected on behalf of TBfree and passed on directly. The balance is invested by DairyNZ in programmes and operational costs to deliver on our strategy.
Who decides how the levy money is invested?
Our Board, made up of five farmer-elected and three independent directors, approves how DairyNZ invests the levy money each year. The annual plan is informed and aligned to the DairyNZ Strategy.
How are investments monitored and reported on?
DairyNZ is subject to an annual external financial audit of its financial statements. KPMG’s audit report is included in the annual report – see 2024 annual report here.
The Board are also responsible for governing management’s achievement and performance against the strategy. DairyNZ is committed to lifting the transparency of levy investment and ROI.
What was the last DairyNZ levy vote result?
During 2020 all dairy farmers who paid a levy on milksolids had the opportunity to vote on whether a levy on milksolids is continued.
The 2020 levy results:
We will continue to deliver the best research and on-farm tools to support and work with you on local farmer-led projects. Progressing a positive future for New Zealand dairy farming is the core purpose of the DairyNZ Board and staff and we are looking forward to continuing our work.
What has the levy delivered over the years?
Since its inception, the milksolids levy has supported many profitability and sustainability gains for individual farmers and the wider sector, including:
Find out more on the history of your levy investment web page.
