Maui Milk is strengthening its commitment to the future of New Zealand’s sheep dairy industry, announcing an increase in its total supplier payout while continuing significant investment in genetics and long-term farm productivity.
In response to the challenges farmers have faced through recent seasons, Maui has increased its total supplier payout to better support its farming partners through ongoing farm inflation and rising input costs. The move reflects Maui’s commitment to building a sustainable sheep dairy sector where farmers can achieve stronger returns while continuing to develop productive, high-performing flocks.
Maui Milk Chief Executive Malcolm Edward said the decision was driven by both economic realities and the company’s strategic direction.
“Our suppliers are at the heart of our business. This payout increase is about providing confidence, supporting farm viability, and ensuring our farmers are fairly rewarded for the quality milk they produce,” said Mr Edward. “We are deliberately taking a long‑term view, backing the right farms, with the right genetics, and growing in a way that protects both our suppliers and our customers.”
Expanding opportunities for sheep dairy farmers
Along with the increase in payout, Maui Milk has also changed its payment structure to create a fairer and more sustainable model for suppliers.
“We’ve learned a lot over the past six to seven years,” said Mr Edward. “We are using that experience to shape a payment structure that better reflects the realities of farming and creates opportunities for more North Island farmers to participate in the growing sheep dairy sector.”
The new structure rewards and encourages higher production volumes and reduces cross-subsidisation where suppliers closest to the factory were effectively offsetting the transport costs of those located further away. This gives Maui Milk greater flexibility to source supply from a wider geographic area, beyond its traditional Waikato base, while still encouraging growth in existing regions.
Due to the implementation of the new payment structure, farms with high production levels in the Waikato region have the ability to receive up to 10% higher payments for their milk solids to encourage more investment back into their sheep milking operation.
It comes at an important time as Maui Milk looks to expand its supplier base ahead of the 2027/2028 season. The expansion is part of Maui’s longer-term strategy to build a strong and sustainable supply network while ensuring growth remains aligned with market demand.
While the Waikato remains an important part of Maui’s supply base, the company is actively exploring regions including Hawke’s Bay and Wairarapa, where there is established sheep farming expertise and strong potential for the development of sheep dairy. With two new suppliers already established in the Wairarapa region, Maui Milk is well positioned to continue strengthening its supply network and encourage further growth in the area.
Building a sheep dairy system suited to New Zealand
Supporting this strategy is Maui’s significant investment in sheep genetics through Southern Cross® Dairy, a programme that has been under development since 2015. The programme is delivering encouraging results, with genetic progress increasingly translating into higher milk production and improved on-farm productivity.
Maui’s ewes consistently produce 54 MS per season on average, with some ewes rearing their lambs and a part of the season being milked once a day. In 24/25, almost 20% of the nucleus ewes produced more than 81 MS per lactation with the right feeding.
The continued development of these genetics is an important part of Maui’s strategy to demonstrate what is possible within a productive, commercially viable New Zealand sheep dairy system.
Maui has also welcomed Aimee Charteris to the Southern Cross Dairy® Genetics team. With over 20 years’ experience across livestock value chains and expertise in animal breeding and genetics, Aimee holds a First Class Honours degree in Animal Science and Animal Breeding and Genetics. She will play an important role in enhancing Maui’s genetics programme, with her practical approach and strong scientific knowledge supporting informed breeding decisions and helping to further develop productive, functional and sustainable ewes capable of delivering high-quality milk for farmers and the wider industry.
Building for the long term
Maui Milk acknowledges that growth in an emerging agricultural sector is rarely without challenges, but the business is increasingly confident about its positioning.
“It won’t always be plain sailing,” said Mr Edward. “But we are locking down our niche, being clear about where we can be the best, and building something durable, both for our farmers and for the markets we serve.”
The goal is clear: to build a sheep dairy sector that delivers sustainable returns for farmers, creates a reliable supply of high-quality milk, and establishes New Zealand as a leader in sheep dairy production.
Natalie Dang also expressed her confidence in Maui Milk’s future, stating:
“We remain confident that market demand will support future performance improvements. The fundamentals of our market positioning remain robust. She further emphasised, “Underlying demand across our key markets remains strong, with tangible growth now evident and ongoing. Maui has built a firm foundation in cultivating market demand. We are committed to collaborating with all of our farm‑supply partners to stabilise and reinforce our supply base, and drive sustained, further market expansion.”
For more information about Maui’s supplier opportunities, genetics programme or commitment to the future of New Zealand sheep dairy, please contact: info@mauimilk.nz
