AgriZeroNZ partners with Innovate UK to drive agricultural innovation
AgriZeroNZ has entered a new partnership with Britain's national innovation agency, Innovate UK.
AgriZeroNZ, jointly funded by the Government, agribusinesses and banks, has committed over $60 million in companies and research activities around the world to develop solutions for New Zealand farms.
A bolus, developed by Kiwi company Ruminant BioTech, will initially be available for beef animals.
AgriZeroNZ chief executive Wayne McNee told Dairy News that more work needs to be done on dairy cows.
"They need to do more testing on dairy animals, but for beef, it should be available early next year."
Ruminant BioTech says it has developed a slow-release bolus, designed to remain in the cow's stomach for up to six months, effectively reducing methane emissions during that period. It claims trials to date of their bolus show over "70% methane knockdown" over 3 months.
McNee points out that the Ministry for Primary Industries (MPI) is doing an assessment of the bolus as part of the approval process.
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He says he understands the approval will allow beef farmers to give a single bolus per animal.
"I know there's been talk among farmers that they may need to keep bolusing animals.
"The initial approval will be for one bolus for one animal. And that'll deliver a 70% emissions reduction over 100 days."
Apart from the Ruminant BioTech bolus, a few New Zealand trials are underway on other technologies.
McNee says they hope the next product would be in the market around 2027, likely to be a low-emissions ryegrass from BioLumic.
"Probably two or three products in 2027, and then more in 2028, so there's this pipeline of products.
"We've invested in nine companies, and they're all aiming to be in market before 2030."
However, there is still some risk around that because most of these companies still need to complete all their research.
McNee believes that once these products start coming into the market, farmer uptake will be more straight forward.
"Once it's here and you start using, it's going to start changing attitudes and farmers will start using the technology, particularly in dairy."
McNee divides farmers into three groups when it comes to technology use to reduce emissions. The first is a group of farmers who are very keen, early adopters.
"They are saying that when the technology comes to market, I want to use it, I want to try it, I want to be the first farmer in New Zealand to give it a go and be like a commercial trial, effectively.
"And then I'd say the vast bulk of farmers are saying, well, I'll wait and see, you know, someone else will give it a go. And if I feel comfortable and if someone's going to pay me, there's going to have to be some sort of incentive to get farmers to take up technology. The vast majority, I think, are in that area.
"And then there's a group who are completely opposed, who do not support any form of technology to reduce emissions, or actually any emissions reduction from agricutlture."
McNee believes everybody's entitled to their view.
He says AgriZeroNZ's goal is to make a range of tools available for farmers to choose from, and then it'll be up to farmers whether they use anything at all or what they use.
"We just try and keep everybody informed. At the end of the day, people can form their own view.
"It's not our job to tell farmers what to do. It's our job to make things available for them. Because... part of it is farmers' money that's going into it."
Consumer-Led Push
The focus on reducing emissions is customer-led and linked to free trade agreement signed by New Zealand.
Wayne McNee says some FTAs, like the UK and the European ones, have requirements that we try and reduce emissions.
"And there are consequences in those if we don't try. I think as long as we're trying, then over time we'll get leeway.
"But this is mostly customer-led. All of New Zealand's major premium customers have got emissions reduction commitments, their own targets.
"And they are looking to New Zealand to help meet them."
McNee adds that New Zealand is already among the most emissions-efficient in the world.
"So, we have a head start. But others are either catching up or in some cases would claim they've passed us."
Funding Call
Decisions will be made over the coming months on the future funding needed for AgriZeroNZ to make a range of tools available to New Zealand farmers.
Partners including dairy processors, Fonterra and Synlait are mulling their future funding commitments. The Government will then decide whether it continues to match funding.
Wayne McNee isn't ruling out the possibility of raising capital from outside investors.
To date, the joint venture has raised $191m which includes the Government matching funding. About $60m has been committed across its investment portfolio to date.
McNee says AgriZeroNZ will need more funding and he agrees there's a limit to how much farmers can contribute.
He points out that New Zealand farmers could miss out if AgriZeroNZ doesn't invest in ventures.
"We've got to get the tools to farmers, and for some of these companies, if we don't put more money in, they may just choose not to bother about New Zealand. Because the fact that we're an investor means they make a commitment to come here.
"If we stop investing, they might still come here, but they might not. But yes, that's up to our investors and the government whether they want to provide more funding in the longer term."
