Agriculture a major influence on economy
The Timaru District economy is strongly influenced by its agricultural heritage. From its birth in pioneering sheep farming, our richly productive agricultural sector has grown to become New Zealand's "food bowl".
Today's farming is heavily influenced by dairy, with horticulture, intensive cropping, meat and wool also playing an important role. Significant manufacturing, processing, engineering and distribution operations contribute to extensive export and domestic supply of a wide range of goods and services.
This provides an array of employment opportunities across all sectors from trades and manufacturing to the professional, service and primary sectors. The Timaru District prides itself on having one of the lowest unemployment rates in New Zealand.
The wider South Canterbury region enjoys reliable and accessible water for irrigation and industry - indeed some of the most affordable resource in the country. This continues to provide the impetus for the development and growth of successful food processing and exporting operations. Large scale investment in water storage, quality and management is continuing, helping to ensure a robust, diverse economic future for the District.
Timaru District – Quarterly Economic Monitor Report December 2025
Highlights:
GDP
Economic activity continues to improve in Timaru, though recovery remains a little patchy. Timaru GDP rose 0.3% over 2025 calendar year, but in the December quarter it jumped up 2.0%.
Dairy payout
Timaru District's dairy payout for the 2025/2026 season is expected to be approximately $544 million, which is $33 million less than last season, assuming that production levels from last season are maintained.
Business counts
The number of business units in Timaru District was up 1.8% for the year to December. Growth was higher than in New Zealand (1.1%) and was lower than in Canterbury Region (2.3%).
Consumer spending
Only a small increase in the year to December for consumer spending, sitting at 0.6%.
House sales and values
Activity in Timaru’s housing market picked up considerably, with a 21% increase in sales over the 2025 calendar year. This compares to a 16.5% increase recorded in Canterbury. However, house values rose only 1.7%, to an average of $518,700 in the December 2025 quarter. Housing affordability has held relatively steady in Timaru, with the average house value amounting to 4.7 times average household incomes, since 2023.
View the full report here:
Timaru District offers a great lifestyle with abundant opportunities. Find out more from residents who've moved here about what Timaru District offers for their lifestyle.
“Farmers Mill have chosen Timaru, South Canterbury to build our state-of-the art flour mill. The district is central to the arable land which produces the wheat we use to mill 100% NZ Flour. We find the district has a strong economic profile and the services and people we require to build a world class business.”
Murray Turley, Chairman, Farmers Mill, Timaru