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Budget 2026 – Federated Farmers welcomes investment in provincial highway resilience

Source: Federated Farmers

Government investment in roading resilience in the face of an increase in severe weather events is sound thinking, Federated Farmers infrastructure spokesperson Mark Hooper says.
“Federated Farmers has been calling for more funding for rural roads and key regional freight and access routes.
“It’s very pleasing that in a tight Budget the Government has found $400 million to tackle drainage, slope stabilisation and rockfall protection at known weak spots, such as the Waioweka Gorge in Gisborne and SH60 Tākaka Hill in Tasman-Nelson.
“This is in line with the truism that ‘a stitch in time, saves nine’. Building in better resilience ahead of the next flood or storm makes sense.
“We can’t continue to see communities like the East Coast or Golden Bay cut off every time a major rain event occurs.”
Ultimately, however, if experience shows a route or piece of public infrastructure continues to be highly vulnerable to weather events, investigation and funding of alternatives is needed.
“The cost of repeated highway and rural road patch-ups quickly mount.
“As the Infrastructure Commission has pointed out, New Zealand needs an agreed, prioritised 30-year pipeline of infrastructure upgrading to build and retain a skilled workforce.”
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Budget 2026 – A black Budget built on human misery – PSA

Source: PSA

Today’s Budget makes clear the heavy price public services, and all New Zealanders will pay to make Nicola Willis’s numbers add up as she unveils deep cuts across government departments.
Nearly 9000 public service workers – one in seven – face losing their jobs over the next three years as $2.4 billion is ripped out of budgets.
“This is a black Budget built on human misery for public servants, social housing tenants and many others – the impacts will be felt for generations to come,” said Fleur Fitzsimons National Secretary for the Public Service Association Te Pukenga Here Tikanga Mahi.
“This Budget will scar our country and will go down in history as one of the worst.
“This is a Budget not about securing our future as the Finance Ministers puts it – quite the opposite. Public services are being knee capped at a time when we need an effective, well-resourced public service sector than ever before.
“The Government is cutting core public service spending by $2.4 billion – that’s money gone from services New Zealanders need, now more than ever. Less, means less. Lower quality, slower and fewer services.
“This will add to the pain so many are suffering now through this lengthy downturn.
“Public services are already struggling. These cuts will make it worse. Our survey of public servants in March paints a bleak picture of public services now, before these deep cuts. Over half say their agency’s ability to deliver has got worse in the last year.
“And worse is to come.
“How does it make sense to cut $470 million from the Ministry of Social Development at a time when its clients need support now more than ever?
“Why does Conservation, the agency protecting our precious natural treasures and tourism drawcard lose $120 million?
“On top of that the run down of social housing continues at pace with Kāinga Ora cutting investment in housing stock by $368 million.
“And health spending is no record – it does not undo the damage already done including losing 1000 data and digital experts from hospitals all over New Zealand.
“All this reflects the choices the Government made over the last two years to give $20 billion away in tax cuts to landlords, business and others.
“This Budget makes it clearer than ever that this government has to go, and the PSA will be making that choice clear at the election – if you want a public service, vote for change.”
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand's largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.
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Budget 2026 – Investment to support a bold future for taonga Māori

Source: Te Māori Manaaki Taonga Trust

Te Māori Manaaki Taonga Trust acknowledges the Government’s $10 million investment as a significant contribution towards advancing Māori artistic excellence, artists and Māori cultural leadership on the world stage.
Te Māori Trust Deputy Chair Ngātaiharuru Taepa says the investment provides support towards caring for the enduring mana and global future of taonga Māori.
“This investment recognises the mana, depth, and excellence of taonga Māori. It gives us the ability to take our taonga, our people and our mātauranga Māori (Māori knowledge) to the world with ambition, integrity, and purpose.”
The announcement comes as the legacy of Te Māori exhibition (1984-87), which opened at the Metropolitan Museum of Art in New York, continues to shape the direction of Māori art and cultural leadership internationally.
Speaking at the 25th anniversary of Te Māori in 2009, Tā Hirini Moko Mead, who helped create the touring exhibition, reflected on its lasting influence.
“Te Māori was groundbreaking and transformative. It reshaped how we saw ourselves, influenced how museums operated both here and in the United States, and changed how we as Māori related to our taonga.”
Taepa says that legacy remains a powerful foundation for the Trust’s future direction.
“Te Māori shifted the world’s understanding of Taonga Māori-from curiosities of the past to being recognised as an important part of a living culture of artistic excellence. This investment will enable the Trust to build national and international partnerships, expand fellowship and exhibition opportunities, and ensure taonga Māori continues to be valued and celebrated.”
Last month, the Trust, in partnership with Te Wānanga o Aotearoa, launched a fellowship with the Pitt Rivers Museum at the University of Oxford, which holds significant collections of taonga Māori.
“Opportunities like Pitt Rivers place our people within some of the world’s most influential institutions. They allow Māori artists and curators to lead, to learn, and to bring our perspectives into global spaces of shared understanding,” Taepa says.
“Our focus is on caring for taonga as part of a thriving culture and creating space for new taonga to emerge. This is about honouring our past, elevating our taonga, and ensuring Māori art thrives for generations to come.”
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Fonterra – Sustained performance in Q3 as Fonterra executes on strategy; announces 2026/27 Farmgate Milk Price

Source: Fonterra

  • Total Group operating profit: NZ $1.8 billion, up $103 million relative to prior year
  • Underlying earnings per share: 57 cents per share, up from 53 cents  
  • FY26 full year forecast earnings range lifted and narrowed to: 60-70 cents per share, up from 50-65 cents per share
  • 2025/26 season forecast Farmgate Milk Price narrows: NZ $9.60-$9.80 per kgMS, from $9.40-$10.00, with the midpoint unchanged at $9.70 per kgMS
  • Announced opening 2026/27 season forecast Farmgate Milk Price of $9.75 within a range of $8.00 – $11.00 per kgMS
  • Season to date milk collections: 1,489m kgMS, up 4% on last season.

Fonterra has today released its FY26 Q3 business update, demonstrating sustained performance and progress on the Co-op’s strategy, with year to date Total Group operating profit of $1.8 billion, up $103 million on this time last year.

The Co-operative has lifted and narrowed its full year forecast earnings range to 60-70 cents per share, due to confidence in the Co-op’s contracted sales position for FY26 and our ability to navigate ongoing supply chain disruption.

The forecast Farmgate Milk Price midpoint for the current season is unchanged at $9.70 per kgMS, with the range narrowing to $9.60-$9.80 per kgMS.

The Co-operative has also announced an opening forecast Farmgate Milk Price for the 2026/27 season of $9.75 with a range of $8.00-$11.00 per kgMS to reflect potential impacts across the season from ongoing geopolitical risks and inflationary pressures.

CEO Richard Allen says, “Today, we’ve delivered another strong result. Milk production is up considerably this season, and despite disruption in global supply chains, our sales book is well contracted and our shipping volumes are strong, with the highest third quarter shipment volumes in a decade.

“As we look ahead to next season, we expect milk collections to remain high, in line with this season. Our in-market sales teams are anticipating solid demand from across the regions despite potential volatility, and this is reflected in our opening forecast range.”

Business performance

A disciplined focus on strategy has driven a Total Group year to date operating profit of $1.8 billion, up from $1.7 billion the prior year, and profit after tax of $1.1 billion, equivalent to 65 cents per share.

Adjusting for Mainland’s result to reflect the Co-operative's underlying business, the Co-op delivered $946 million profit after tax, equivalent to earnings per share of 57 cents, up from 53 cents this time last year.

The Ingredients business benefited from ongoing protein demand in the US and Europe, while Foodservice continued to achieve both volume and margin growth.

Strategy execution

Mr Allen says the Co-op is committed to delivering on its strategy and growing value for farmer owners as a global B2B dairy provider.  

“During the quarter, we completed the sale of Mainland Group and returned $3.2 billion to shareholders and unit holders. This marked a significant step in the delivery of our strategy, with the Co-operative firmly focused on growing our high-value Ingredients and Foodservice businesses.

“We advanced work on our new $35 million pastry butter sheet capacity at Edgecumbe, reached product validation stage on our $75 million Studholme protein hub, and made good progress on our $75 million butter expansion at Clandeboye and $150 million UHT cream build at Edendale.

“I’m also pleased to announce that we’ll be progressing with the planned expansion of our organic business into the South Island, following strong interest from farmers wanting to join our successful organic programme.

“Our forecast Organic Milk Price range for the current season is $13.90 – $14.10 per kgMS, with a record midpoint of $14.00 per kgMS. Our opening forecast for the 2026/27 season is $13.00 – $15.00 per kgMS, also with a $14.00 per kgMS midpoint, reflecting the value customers see in our organic farmers’ milk.  

“These initiatives all reflect real momentum in the Co-op’s performance as we head into the final quarter of the financial year.”

Outlook

“Looking ahead, Fonterra has strong foundations and a clear strategy to deliver value through our global Ingredients and Foodservice businesses,” says Mr Allen.

“Our full year earnings guidance reflects the strong shipment volumes expected in the final quarter of the year.

“However, we acknowledge the uncertainty caused by the ongoing conflict in the Middle East. Like our farmers, and others around the world, we are experiencing cost inflation and shipping disruptions.

“We are confident that our deep relationships with customers and logistics partners will continue to help us navigate these challenges.”

Notes

Underlying earnings: Adjusted for Mainland Group's result to reflect the Co-operative's underlying business.

Non-GAAP financial information  

Fonterra uses several non-GAAP measures when discussing financial performance. Non-GAAP measures are not defined or specified by NZ IFRS.    

Management believes that these measures provide useful information as they provide valuable insight on the underlying performance of the business. They may be used internally to evaluate the underlying performance of business units and to analyse trends. These measures are not uniformly defined or utilised by all companies. Accordingly, these measures may not be comparable with similarly titled measures used by other companies. Non-GAAP financial measures should not be viewed in isolation nor considered as a substitute for measures reported in accordance with NZ IFRS.  

Non-GAAP measures are not subject to audit unless they are included in Fonterra’s audited annual financial statements.

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DRC: One in four confirmed Ebola deaths are children underscoring the urgent need to protect them – Save the Children

Source: Save the Children

At least 25% of confirmed deaths from Ebola in the Democratic Republic of Congo (DRC) are children, highlighting the urgent need to scale up health services and infection prevention to protect children, said Save the Children [1].
Latest government figures released on Wednesday show that children make up 25% of the 17 confirmed Ebola deaths – although the number of real cases is likely to be significantly higher as this number only includes children under 15, and only includes confirmed cases. Of these deaths, 14% are children under the age of 5.
Some 1,077 people are now suspected of contracting Ebola with 238 suspected deaths since the outbreak was declared on 15 May, with children and youth under the age of 19 accounting for 17 out of 121 confirmed cases of Ebola, or 14%.
This number of suspected cases is already over one third of all confirmed cases reported in the largest Ebola epidemic in the DRC in recent history, in which there were 3,262 confirmed cases and 2,232 deaths, 28% of which were children.
While the outbreak was declared 11 days ago, the number of deaths and infections is feared to be much higher, with the probable first or index case most likely to have been in the first few months of the year, adding to concerns about prolonged undetected transmission in the community.
Children are among the most vulnerable group in this outbreak, said Save the Children. As well as being exposed to the direct risk of infection, they face major indirect consequences such as disruptions of essential health and nutrition services, loss of parents and caregivers, loss of access to schools, stigma, psychosocial distress, and increased protection risks.
Children are particularly vulnerable if they lose one of both of their parents or primary caregivers to the illness, with Save the Children child protection staff already reporting at least two children who have lost their parents to Ebola and requiring urgent care support.
Ebola is a severe and often fatal disease spread through direct contact with bodily fluids, or indirect through contaminated materials, or infected surfaces. Its symptoms include fever, weakness, vomiting, diarrhea, muscle pain, and, in severe cases, bleeding.
The current Ebola outbreak is yet another crisis to hit DRC which has seen a sharp uptick this year in conflict, creating one of the world's most severe humanitarian crises with 5.6 million people including about 2.5 million children internally displacedwhile 15 million people – almost one in every seven people – need humanitarian assistance.
Dr Babou Rukengeza, Save the Children’s Ebola Response Lead in the DRC, said:
“This outbreak is moving at a terrifying speed. I have responded to several Ebola outbreaks over the years, but this is the fastest spread I have ever seen. Children are paying a devastating price, making up at least one in four confirmed deaths, although we suspected the numbers are far higher.
“When parents die, children suddenly lose the biggest support system they could possibly have and face fear, grief, stigma, and social exclusion.
“In addition, this crisis is unfolding at a critical moment when children are preparing for their end-of-year exams, threatening not only their health but also their future.
“A rapid, well-funded, and coordinated response is essential to stop the spread of Ebola, maintain essential services, and ensure that children remain safe, protected, and able to continue learning throughout the outbreak.
“We need urgent action and immediate flexible funding to scale up the health response and strengthen infection prevention and control, while ensuring children and families can access protection, education and essential services to save lives and reduce the long-term impact on communities.”
Save the Children has provided chlorine to the health authorities in Bunia for facility decontamination and therapeutic milk to a centre for malnourished children and breastfeeding mothers suspected of having the Ebola virus.
The aid agency is also racing to equip health facilities with personal protective equipment, triage units and infection prevention and handwashing infrastructure while supporting active case detection and contact tracing in communities and health facilities. This includes training community health workers and teachers on virus detection and referral and providing emergency hygiene kits and thermometers.
Save the Children started working in DRC in 1994 and currently collaborates with 13 local partners, alongside international organisations and government authorities, to provide life-saving support in health, nutrition, education, child protection, food security, and water, sanitation, and hygiene for children and their families.
Notes:
[1] According to latest data from the DRC’s Ministry of Health, released Wednesday 27 May with data up to Tuesday 26 May, [SitRep No. 12], there are 121 confirmed cases, 17 death confirmed, 1077 suspected cases, 238 suspected deaths. On page 3, there is a graph indicating 25% of confirmed deaths are children under 15, and 17 cases are children and youth under the age of 19.
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Greenpeace – Southland nitrate investigation delaying the inevitable

Source: Greenpeace

Greenpeace says that Environment Southland continues to risk people’s health by delaying action against dairy pollution, following the announcement that they would instead conduct another investigation into the causes of the region’s nitrate crisis.
This will be the second investigation run by the regional council into the nitrate woes that caused Gore’s town supply to exceed the legal limit for nitrate contamination last year.
Greenpeace Aotearoa freshwater campaigner Will Appelbe says “The people of Southland don’t need more reports – they need urgent action to reign in intensive dairying and protect people's health from the nitrate crisis.”
The first investigation only looked at the compliance history of resource consent holders in the area. Environment Southland says this new investigation will identify and understand broad nitrogen source types, groundwater flow and age, and how the Coopers Well is replenished – which could take up to three years to complete.
“While more data is always useful, we have enough evidence that shows intensive dairying is the main source of nitrate contamination in the region, it should not delay urgent action to protect water supplies,” says Appelbe.
Greenpeace recently issued a warning to pregnant people against drinking from the Lumsden water supply, after the organisation's recent nitrate testing revealed that the town’s water was at 6.14 mg/L of nitrate (NO3-N) on average. The New Zealand College of Midwives recommends that pregnant people exposed to drinking water nitrate above 5 mg/L ‘consider accessing an alternative water source’.
“According to Environment Southland’s own report earlier this year, up to 15,000 Southlanders are served by drinking-water supplies that are highly vulnerable to nitrate contamination. They deserve action now, not in three years.”
“We need to stop nitrate from getting into the drinking water in the first place. That means reducing the size of the dairy herd, and phasing out the use of synthetic nitrogen fertiliser, because urea and cow urine are the primary sources of nitrate contamination.”
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Northland News – Kāeo river realignment works shut down for Winter

Source: Northland Regional Council

A $1.5 million project to re-route a 500-metre section of the Kāeo River to better protect Kaeo township from flooding has shut down for the wet Winter months.
Northland Regional Council member Colin ‘Toss’ Kitchen, who chairs the Kāeo-Whangaroa River Working Group, says the project – which began last December – will resume in Spring with the onset of warmer, drier weather.
Councillor Kitchen says ongoing rainfall through March and last month had resulted in multiple wet-weather stand-down days and elevated groundwater levels, significantly slowing construction progress.
“Ground conditions prevented safe operation of heavy machinery without causing site damage.” There had also been a number of archaeological discoveries.
Despite the delay, the project was still due for completion before Christmas, weather permitting. The winter break would allow the newly-constructed channel to stabilise over winter and for grass to establish on banks. At this point it was hoped water would begin flowing through the new channel by Christmas.
Councillor Kitchen says the project involves the construction of flood protection works for Kāeo township and adjacent portions of State Highway 10 for resilience to home and business owners and main roading routes.
It will shift the junction of the Waikara Stream and Kāeo River 500 metres downstream, with a new 500-metre long deflection bank constructed alongside Kāeo township.
Once complete, the project is expected to reduce the depth of floodwaters in Kāeo during a one in a hundred-year flood event by up to half a metre.
Councillor Kitchen says regional councils play a critical role in flood risk management and the Kāeo scheme is one of several flood management schemes in place across Taitokerau to reduce risk to life, property and infrastructure.
This project is being funded through a combination of targeted and regionwide flood infrastructure rates and central government funding from National Infrastructure Funding and Financing (formerly Crown Infrastructure Partners).
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Property Market – Almost a quarter of New Zealand home sellers cutting asking prices as pandemic-era expectations collide with slower market conditions

Source: eXp New Zealand

 

The latest research from eXp New Zealand has found that almost a quarter of homes currently listed for sale across New Zealand have seen an asking price reduction within the last 28 days, as sellers continue to adjust expectations in a slower-moving market environment.

 

The research by eXp New Zealand analysed current for-sale listings across the New Zealand market, looking at the proportion of homes that have seen a price adjustment over the last 28 days.


Across New Zealand as a whole, 23.4% of homes currently listed for sale have seen an asking price reduction within the last month.

 

Wellington has seen the highest proportion of price-adjusted listings, with 33.9% of homes on the market seeing a reduction in asking price over the last 28 days.

 

Gisborne ranks second at 28.2%, followed by the Bay of Plenty at 27.5%, Hawke’s Bay at 27.3%, and Canterbury at 25.6%.

 

Even Auckland, New Zealand’s largest housing market, has seen 24.0% of listings reduced in price, whilst Otago (23.4%) and Waikato (23.1%) also sit above the national average.

 

The figures suggest that many sellers are still pricing homes based on expectations formed during the post-pandemic property boom, despite current market conditions being notably slower and more balanced in favour of buyers.

 

As a result, homes entering the market at overly ambitious price points are increasingly requiring reductions later in the sales process in order to generate renewed buyer interest.

 

Head of eXp New Zealand, Matt Jones, commented:

 

“One of the biggest mistakes sellers can make in the current market is relying too heavily on historic pricing expectations rather than current buyer behaviour.

 

During the pandemic boom there was an expectation that strong offers would come quickly and competition between buyers would naturally push prices higher, but today’s market conditions are very different.

 

Buyers have far more choice, they’re more cautious, and they’re much more value conscious, particularly given wider economic pressures and affordability considerations.

 

That means local expertise is absolutely vital when it comes to pricing a home correctly from day one. A broad understanding of national trends is important, but understanding exactly what buyers are willing to pay within a specific suburb or market at a specific moment is even more critical.

 

When a property is overpriced at launch it can often sit on the market for longer than expected, which ultimately weakens negotiating power and makes a price reduction almost inevitable further down the line in order to reignite interest.”

 

Data tables and sources

• Data sourced from Realestate.co.nz listings data collected on 30th March 2026.
• Analysis based on the proportion of active for-sale listings showing an asking price reduction within the previous 28 days.

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Statistical area 2 and 3 population projections: 2023(base)–2053 – fourth instalment – Stats NZ information release

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Economy – OCR on hold, ceasefire adds a new element – Cotality

Source: Commentary by Cotality's Chief Property Economist Kelvin Davidson

There was no surprise that the Reserve Bank’s Monetary Policy Committee left the official cash rate (OCR) unchanged at 2.25% today. But the associated commentary and forecasts – as well as the newly-approved voting records – made for fascinating reading and a July OCR increase may now be a fair possibility.
A quick run-through of the forecasts shows that GDP is expected to grow by around 1.7% this year (and perhaps 2.5% in 2027), with the unemployment rate unfortunately now set to stay higher for longer – potentially stuck at about 5.4% for the next 12-18 months as employment edges up but the labour supply grows too.

Most importantly, though, the inflation projections have been ramped up, with headline CPI set to go well above 4% over the next few quarters, as non-tradable inflation trends sideways but tradables (e.g. fuel) push up towards 6%. Of course, all of this is well above the RBNZ’s 1-3% medium-term inflation target, even though the subdued economy and soft labour market should have a restraining influence to some degree.

As such, the forward OCR track has been revised and now goes from 2.25% to 3.00% by early 2027, implying three increases over the next 4-5 meetings.

The voting records show a 3-3 split of members voting for no change versus those wanting a rise today. Governor Breman voted no change, so she had the casting vote – but you’d have to think the tightening cycle now looks set to start as soon as July. This suggests that mortgage interest rates have further to rise but given they’ve already increased ahead of today’s decision anyway, it’s not necessarily a one-for-one pass through.

On balance, the housing market outlook probably hasn’t changed too much as a result of this updated information. It’s already looking pretty sluggish, with sales making a soft start to 2026 and prices in many parts of the country flat at most. Listings are still elevated and it’s a market firmly in favour of buyers, or at least those who have high job security.

In the current environment, as mortgage rates trend higher, 2026 looks set to be another ‘sideways’ year for the housing market. Indeed, having previously indicated a rise of around 10% for sales volumes in 2026 (from about 90,000 to 100,000 in round numbers), the model now points to stability at around 90,000 being a good result.