The strategic moment for dairy-beef in New Zealand

New Zealand's dairy sector is at a strategic crossroads. With nearly 2 million underutilized calves born annually, the opportunity to build a scalable, profitable dairy-beef system is now - and could be worth over NZD 1.2 billion at current market prices.

Global beef demand is rising, and New Zealand must act to take advantage of the opportunity. Strong export prices and tightening global supply create a lucrative window for New Zealand to expand its beef footprint, but herd rebuilding takes time and requires coordinated, cross-sector action.

Better breeding is the biggest lever for lifting dairy-beef productivity. Strategic use of superior beef genetics, artificial insemination, and calving timing can dramatically reduce early calf (bobby calf) slaughter and enhance profitability across the value chain - and improve growth rates in reared dairy-beef calves - without necessarily overhauling the entire dairy herd.

Calf rearing is the system's pressure point. Rearers carry the highest risk and need better incentives, infrastructure, and support to lift rearing rates and help avoid boom-bust cycles that can limit long-term beef supply.

In our view, collaboration is non-negotiable. A connected value chain - from breeders to finishers - is essential to unlock consistent supply, improve margins, and meet evolving consumer and market expectations for what is considered ethical, sustainable beef.

Inaction may put New Zealand's social license and market access at risk. Reducing early calf slaughter is not just an economic imperative, it's a reputational one. A more integrated dairy-beef system could help protect New Zealand's global brand and future-proof its livestock sector.