Among the changes is the replacement of the Resource Management Act (RMA), a key piece of legislation that sets out how New Zealand manages its environment, including soil, water, and air.
The new framework that will replace RMA consists of two bills, the Natural Environment Bill and the Planning Bill.
Diary NZ, a trade organisation said it welcomed plans to reduce complexity and costs, with greater emphasis on using permitted activities and farm plans to manage farming operations.
“The RMA impacts nearly every aspect of farm operations, so farmers need a system that provides certainty to invest in future solutions.”
However, it has concerns over the current proposal.
“We have concerns about proposals for hard environmental limits, particularly for water quality. We prefer an outcomes‑based approach over a fixed numerical limit, and we are closely reviewing the potential introduction of market tools and user charges as the legislation progresses.”
Gene technology reform
Another significant development is the government’s Gene Technology Bill which aims to modernise how New Zealand regulates gene editing and genetic modification.
The organisation supports the broader reform effort and the Bill’s goal of enabling safer, more streamlined pathways for research and on‑farm trials.
While DairyNZ has welcomed the committee’s updates, it notes that several of its key concerns are still unresolved.
It emphasises that any new framework must protect farmers, export markets and trade relationships.
It said the planned four‑year review of the new system would be important to fine‑tune the rules and ensure the primary sector can safely benefit from gene‑tech innovation.
Revised methane targets
Another pivotal area undergoing change is climate policy.
In October, the government confirmed a revised 2050 biogenic methane reduction target of 14 to 24 per cent below 2017 levels, replacing the previous target of 24 to 47 per cent.
The update aligns the target with the findings of an independent methane science review and a “no additional warming” approach to methane’s climate impact.
DairyNZ said it welcomed this revision as it brouht the target closer to what is achievable on real farms and better reflects current scientific understanding.
Farmers also have certainty that there will be no farm‑level methane tax.
Although sector‑wide emissions have already fallen by about four percent since 2017, DairyNZ cautioned that meeting the upper end of the new target will still require substantial innovation.
Current efforts include the Emissions4Pasture research programme and work to refine pasture and feeding systems that can reduce emissions without compromising productivity.
Together, the reforms “set the scene” for a new phase of sustainable growth for the sector that will benefit farmers while aligning with government agenda, said DiaryNZ.
“The dairy sector has made strong progress in recent years, strengthening its record of managing environmental and animal welfare impacts. As these gains bed in, the sector is reinforcing its licence to operate – and its ability to grow responsibly, within environmental limits,” said the organisation.
“These updates show the sector building on its strengths and adapting to new regulations in practical, science‑backed ways.”
Record breaking season
The 2024/25 dairy season delivered record results for New Zealand’s dairy sector, with milksolids production increasing despite a slight decline in total cow numbers.
DairyNZ’s head of economics, Mark Storey said: “Amid a year of rising costs, New Zealand dairy farmers demonstrated resilience, maintaining their focus on innovation, investment and sound management.
National cow numbers fell by 0.5 per cent to 4.68 million, yet total production still rose.
Average milksolids per cow reached a new high of 414kg, notably above the five‑year average of 400kg. This total comprised 234kg of milkfat and 181kg of protein.
For the first time, average milksolids production per herd surpassed 180,000kg,
