Rural Research

Dipping dairy dynamics

Dairy prices have been generally strong in 2025 and the national income flows from it have been robust. However, the dynamics are changing with the global dairy market now clearly softening. A surge in global milk supply is putting material downward pressure on prices.

Export incomes to support activity

Primary sector export returns have been stellar over the past year. Major sectors like dairy, beef, lamb, and kiwifruit have seen significant gains. While not every sector has enjoyed strong gains, the sector heavy weights have driven overall agricultural exports to $53.0b in the year to August 2025, some $7.5b higher than a year earlier.