Bank's desire to be part of the solution
ASB says the decision to sign on to the AgriZeroNZ joint venture came out of a wish to be a part of the solution.
Based in Raleigh, North Carolina, Hoofprint Biome was founded by biotech entrepreneurs Drs Kathryn Polkoff and Scott Collins as a spinout from NC State University.
The pair discovered enzymes that naturally reduce rumen methane emissions and saw the potential for delivery of these with probiotics to benefit ruminant agriculture and tackle the climate change.
Ingested as a supplement, the Hoofprint probiotic aims to reduce enteric methane emissions by over 80% while simultaneously increasing milk and meat yield by over 5%.
AgriZeroNZ is a partnership comprised of MPI and several NZ agribusiness entities such as Fonterra and Rabobank.
It was established in February to accelerate the development of tools and technology to help farmers rapidly reduce emissions and support our climate goals. Shareholders have committed to at least 10 years in the partnership with $165 million to be invested over the first four years.
AgriZeroNZ chief executive Wayne McNee says that the investment earlier this month will allow it to be involved from and early stage and drive development towards a solution for New Zealand farmers.
"Hoofprint is developing novel technology with potential to be a real breakthrough to help meet our country's climate goals," McNee says. "We're looking all over the world for opportunities that will work on New Zealand farms."
He adds that New Zealand farmers are the most efficient in the world but the importance of reducing agricultural emissions cannot be understated and technology like this needs to be part of the solution.
Polkoff says Hoofprint is excited to partner with Kiwi farmers develop the solution for Kiwi farmers.
"We're bringing next-gen probiotics to ruminant agriculture in our mission to cut methane emissions while improving animal health and profitability."
She says the investment offers a unique opportunity for Hoofprint to tackle the climate crisis together with New Zealand farmers, who have been leaders in sustainable agriculture.
McNee says the investment aligns with the JV's ambition to ensure all farmers in NZ have equitable access to affordable, effective solutions to reduce emissions. He adds that the goal is to support a 30% reduction by 2030 and enabling development and adoption of solutions to drive towards 'near zero' by 2040.
"The Hoofprint probiotic is in early stages but if development continues to progress we look forward to supporting it through New Zealand's regulatory process and getting it into farmers' hands."
This is AgriZeroNZ's fourth investment since being established in February.
