Strong season, tighter margins: AgFirst highlights dairy efficiency opportunity
AgFirst’s latest Waikato-Bay of Plenty Dairy Financial Survey shows local dairy farmers are entering the 2026/27 season in strong physical and financial shape, following an outstanding year for pasture growth, milk production and cashflow.
The survey was presented by Agricultural Economist, Phil Journeaux at Waikato Innovation Park on 23rd July to approximately 140 people. It showed a 4% lift in milksolids production in 2025/26, supported by excellent growing conditions, strong cattle returns, a high milk payout and Fonterra’s capital return.
Rising costs mean profitability is becoming harder won. Farm working expenses are budgeted to reach $6.91/kg MS in 2026/27, while the breakeven payout is expected to sit at $8.98/kg MS.
AgFirst CEO James Allen presented on the efficiency opportunity, highlighting that a 5% lift in production combined with a 5% reduction in farm working expenses could lift cash surplus by around 35% on the model farm - approximately $900/ha, or $123,000 per farm. Key focus areas include better pasture and crop utilisation, targeted supplementary feeding,smarter fertiliser planning, improved labour efficiency, and the use of AgTech and data to support decision-making.
“The season has opened positively, but efficiency, cost control and good use of information will be critical as input costs continue to rise,” AgFirst says. “Small gains in feed grown, feed utilised and decision-making can have a very large impact on profitability.”
For a copy of the full report, click on the link below:
2026 Waikato-BOP Dairy Financial Survey
To view a copy of the Presentation, click on the link below:
2026 Presentation
Previous year reports available below.
Waikato & BOP:
2025 - Waikato-BOP Dairy Financial Survey
2024 - Waikato BOP Dairy Report
2023- Waikato BOP Dairy Report V2
2022- Waikato, BOP Dairy Report
2020- Waikato, BOP Dairy Presentation
2020- Waikato, BOP Dairy Report
2019- Waikato, BOP Dairy Report
2018- Waikato, BOP Dairy Report
2017- Waikato, BOP Dairy Report
2016- Waikato, BOP Dairy Report
2014- Waikato, BOP Dairy Report
Southland:
2016- Southland Dairy Report
2015- Southland Dairy Report
.jpg)
.png)
Download PDF
