The economic loss to dairy farmers associated with bovine viral diarrhea virus (BVDV) is believed to be high in New Zealand, but no estimates are yet available. The aim was therefore to estimate the economic loss associated with BVDV in dairy herds in New Zealand. Bulk tank milk (BTM) from a random sample of 590 herds from the Northland, Bay of Plenty, and Waikato regions was tested for antibody against BVDV. The inhibition percentage (sample to positive ratio), based on a threshold validated in an earlier study, was used to indicate herd-level infection. Herd reproductive indices, herd lactation-average somatic cell counts, and herd average production of milk solids were regressed on BTM inhibition percentage. Herd averages of the overall annual culling rate, the rate of culling because of failure to conceive, the proportion of physiological inter-service intervals, the first-service conception rate, the pregnancy rate at the end of mating, and somatic cell counts were not associated with BVDV antibody in BTM. Abortion rates, rates of calving induction, the time from calving to conception, and the number of services per conception increased, however, whereas milk production decreased with increasing BVDV antibody in BTM. The results indicated significant reproductive and production loss associated with the amount of BVDV antibody in BTM. Total loss attributable to infection with BVDV was similar to reports from other countries and estimated as NZ$87 per cow and year in affected herds, and NZ$44.5 million per year for the New Zealand dairy industry based on an estimated 14.6% affected herds. The loss estimate excludes added cost and negative consequences with respect to animal welfare attributable to increased induction rates, and a greater incidence of production disease because of BVD-induced immune suppression.