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 March 2025
Highlights:
Economic activity in Timaru contracted by 0.8% in the year to March 2025, according to Infometrics provisional GDP estimates. Improving meat and dairy commodity prices kept the district ahead of the national decline of 1.1%, despite a sharp pullback in construction and manufacturing in the district.
Employment of Timaru residents fell 2.4%pa, almost entirely driven by the loss of manufacturing jobs associated with Alliance Smithfield closing. Beyond manufacturing, there were modest gains in agriculture, education, and health, and a decline in accommodation and food services, reflecting a stalling tourism recovery nationally. The number of Jobseekers in Timaru rose 27%pa in the March 2025 quarter, likely driven by ex-Smithfield workers. Nonetheless, Timaru’s unemployment rate of 4.4% in the March 2025 still tracks below the national average of 5.4%, indicating that the local labour market is in relatively good shape overall.
Consumer spending in Timaru had been tracking well, up 1.0% in the year to March 2025, compared to a 1.4% fall nationally.
GDP
- GDP in Timaru District was down 0.8%, totalling $3,969 million.
Dairy payout
- Timaru District total dairy payout for the 2023/2024 season is estimated to have been approximately $445 million.
- Timaru District's dairy payout for the 2024/2025 season is expected to be approximately $584 million, $139 million higher than last season, assuming that production levels from last season are maintained.
Consumer spending
- Electronic card consumer spending in Timaru District as measured by Marketview, increased by 1%.
Tourism spending
- Total tourism expenditure in Timaru District decreased by 1.5% in the year , compared to an increases of 1.2% in provincial areas.
House values
- Timaru’s house values are down 1.7% with the average value now $511,082 compared with $661,218 in provincial areas.
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