The temperate climate of almost all of New Zealand suits European types of cattle. Most of the dairy farms are in lowland areas of the North Island, where naturally fertile or improved soils make for good grass growth. There is no good evidence to suggest that dairy cattle of the European breeds suffer from the direct effects of climate in these areas, but climate does play a large part in determining their productivity through its effects on the feed supply. Severe or prolonged winters, or droughts in summer, are the most usual causes of lowered yields of dairy produce.

Most dairy produce comes from specialised dairy farms where the main food for the cattle is pasture, in the main grazed directly, though some feed is stored as hay or silage in times of good growth against times of shortage. Only limited irrigation of grassland is carried out. Fodder crops are commonly used to provide extra food in the driest part of the summer and sometimes for winter feeding, but very little grain or other concentrate is given. New Zealand dairy farming is seasonal because it relies on pasture which grows best in the spring and early summer and least in the winter. Most of the cows calve in late July and August and are not lactating in the winter.

Herds supplying milk for towns and cities differ a little from this pattern. Because these herds must produce milk all the year round, some cows are calved in summer and others in autumn and winter; but even these farms rely mainly on pasture, and the peak of milk production is usually in the spring when pasture growth is most rapid.

The amount of labour used on New Zealand dairy farms per 100 cows is low compared with that of other countries. Because cows are grazed on pastures, little labour is needed for feeding stock, and labour-saving machinery is much used. In 1918–19 about half the cows were milked by machines; by 1941 the proportion was 86 per cent, even higher in intensive dairying areas.