Nationally significant – South Canterbury delivers for New Zealand

South Canterbury is a $3.8 billion food and fibre exporter and a national electricity powerhouse generating 16% of New Zealand’s installed capacity — yet receives only 0.7% of the government’s nationwide roading investment, according to new independent analysis released today by Timaru District Council and Venture Timaru.

The region — covering the Timaru, Waimate and Mackenzie districts — makes up around 5% of New Zealand’s land area and just 1.2% of its population. A report prepared by economist Benje Patterson shows it is a nationally significant but largely unheralded contributor to the New Zealand economy.

Food and fibre exports from South Canterbury totaled an estimated $3.8 billion in 2025 — 6.2% of New Zealand’s total —including 10% of the country’s dairy exports, nearly 10% of all seafood and aquaculture exports and over 20% of its arable exports. There is 1,741MW of installed generation capacity across the Mackenzie District and Waitaki River hydro scheme, of which South Canterbury use only around 231MW — a generation-to-demand ratio of 7.5x, making the area a major net exporter of electricity nationally – powering homes and businesses well beyond our own boundaries. Now layer on the next wave: 2,712 MW of additional generation projects in Transpower’s pipeline – with 2,412MW of this at application or investigation phase. Not all will be built, but even partial delivery would make his area one of the country’s largest concentrations of new renewable generation.

Despite this, one of our key enablers roading infrastructure lags behind when it comes to investment. Even though the region’s roads (encompassing the Mid Canterbury roading catchment) carry 5.1% of the State Highway network and underpin the supply chains that get this produce and energy infrastructure to market, NZTA roading expenditure in South Canterbury was just $43.7 million in the 2025 year — 0.7% of the $6.4 billion spent nationwide.

Timaru District Mayor Nigel Bowen said the figures contained in the report, and those collated from other sources, confirmed what the region had long suspected. “We have never been a region that shouts the loudest, and we’ve too often paid the price for that. This isn’t a complaint — it’s a fact-based case. South Canterbury is quietly getting on with the job of growing food, generating power, and running a strong, well-managed economy, and doing it on a fraction of the infrastructure investment, recognition of contribution or support other regions receive. That gap has to close, and it has to start with central government recognising the numbers in front of them.” — Nigel Bowen, Mayor, Timaru District

The Council and Venture Timaru are calling on central government to ensure South Canterbury’s nationally important freight and productive corridors are properly recognised when infrastructure funding is assessed against the Government Policy Statement on Land Transport’s own priorities of economic growth, productivity, freight efficiency, resilience, safety and value for money.

Venture Timaru Chief Executive Nigel Davenport said the data should reset how central government thinks about the region. “South Canterbury isn’t a marginal economy that needs propping up — it’s a strong, diverse, well-performing one that’s carrying more than its share of the national load. Our GDP growth traditionally outpaces the national average, our unemployment rate is well below it, and our exports and energy generation are doing heavy lifting for the whole country. We’re not asking for a hand-out. We’re asking for investment decisions and regulatory settings that actually reflect what this region delivers.” — Nigel Davenport, Chief Executive, Venture Timaru

In addition to a more appropriate allocation of NZTA roading expenditure, Davenport said there was another immediate, tangible development central government should now ignite to show it had heard the region’s case: Transpower’s $193 million upgrade of the Mid & Upper South Island electricity grid, which received Commerce Commission draft approval in December 2025 and final approval in June 2026.

The upgrade will build new switching stations near Orari and Rangitata and strengthen transmission through the Waitaki Valley, improving the flow of lower-cost South Island hydro power northwards, addressing growing demand and providing greater headroom for future electrification. Davenport said the real prize for South Canterbury was what that headroom could unlock next.

“Now with final approval – government should deliver this grid upgrade at pace working with us to unlock large-load opportunities like further electrification of our community and existing industry, attracting new-to-district business, and unlock a growing pipeline of energy prospects — all made possible as soon as this backbone energy capacity and access is secured” – Nigel Davenport, Chief Executive, Venture Timaru

Bowen said the grid upgrade was one of several significant opportunities the region wanted central government to actively back, alongside the wider renewable energy potential that South Canterbury’s unique generation capacity, transmission access and energy environment now put within reach.

Davenport said unlocking that potential was also a case for the electricity market reform business leaders nationally are calling for – including the Auckland Business Chamber’s push to fix a market many are describing as broken. “The courage business leaders are asking politicians to show isn’t abstract — electricity market reform has a concrete test case right here in South Canterbury. This is a region with the generation, land, grid access and appetite to help power up New Zealand, waiting on a market and regulatory framework that matches its ambition – Nigel Davenport, Chief Executive, Venture Timaru.

The two organisations have briefed local Members of Parliament Meager and Anderson who have committed their support to present and position the data and report findings to relevant Ministers and central government agencies over coming months, as part of a wider campaign to ignite action in key areas that better reflects the region’s national significance.

“South Canterbury has always punched above its weight. We produce a nationally significant share of New Zealand’s food, fibre and electricity, and the opportunity now is to turn that productive base into the next wave of investment, higher-value jobs and stronger exports.” The strongest case we can make for investment is that getting the right roads, electricity connections and digital infrastructure in place can unlock substantial private investment, lift productivity and strengthen supply chains for the whole country.” – James Meager MP for Rangitata and Minister for the South Island.

“This is a great piece of work highlighting the significant economic activity of South Canterbury. It shows how central governments have tended to overlook infrastructure spending in South Canterbury whilst detailing significant potential that exists in our region. Both James and I will continue advocating for greater central government funding to come into South Canterbury so our communities receive the share they deserve and can build on opportunities for a stronger future.” – Miles Anderson MP for Waitaki

“We want to unleash what this region can be and so much more. Central government now has the opportunity to step up and in – right alongside us and back that – ” — Nigel Bowen, Mayor, Timaru District.

Read the economic report prepared by Benji Patterson, May 2026 “The contribution of South Canterbury’s primary industries and energy to New Zealand”