with respective populations of , , and . (These populations include the urban and peri-urban areas). The region also includes the smaller towns of Huntly, Matamata, Morrinsville, Ngāruawāhia, Ōtorohanga, Paeroa, Putāruru, Raglan, Te Aroha, Te Kauwhata, Te Kuiti, Thames, Tīrau, Tuakau, Turangi, Whangamatā and Whitianga. Economy The subnational gross domestic product (GDP) of the Waikato region was estimated at NZ$25.84 billion in the year to March 2019, 8.5% of New Zealand's national GDP. The subnational GDP per capita was estimated at $54,128 in the same period. In the year to March 2018, primary industries contributed $3.14 billion (13.0%) to the regional GDP, goods-producing industries contributed $5.70 billion (23.5%), service industries contributed $13.35 billion (55.0%), and taxes and duties contributed $2.08 billion (8.6%). Between 2000 and 2004, Waikato economic growth was lower than the national average. But from 2004 to 2007, real gross regional product for the Waikato Region increased by 5 per cent per year compared with 3.2 per cent for the national average. This faster growth can be attributed to rapidly growing dairy and business services industries, facilitated by proximity to the Auckland city, the main international gateway for New Zealand. Agriculture Given the suitable geography and climate, the Waikato economy is strongly based on agriculture, especially dairy. Dairy farming has been the main agricultural activity since the late nineteenth century. Within the Waikato region, small co-operative dairy companies were widespread during the 20th century. Towards the end of the 20th century, frequent mergers of co-operative dairy companies occurred, which ultimately ended in the formation of New Zealand wide dairy co-operative Fonterra in 2001. In 2007, dairy farming and dairy processing combined contributed $2 billion (13%) to GRP, which had risen to $2.4bn by 2014, but only 13,683 (7.6%) of jobs in 2016. Dairy farms are mainly family owned (2,608 of 4,020 farms in 2016) with owners employing sharemilkers in many cases (1,412 sharemilkers). The size of the average dairy herd in the Waikato has progressively increased. It was about 320 cows in 2012 and in 2016 was about 351 (total Waikato herd 1.41m cows), milked in either a herringbone or automated rotary cowshed so a large herd can be milked in under two hours. The cows are kept on grassland pasture all year due to the mild climate. In the Waikato the original English grasses used by earlier settlers – browntop, fescue and Yorkshire Fog – have been