A groundbreaking public-private partnership is bridging the gap between government, industry, and innovators to accelerate the development of emission reduction solutions for pasture-based farming.
Established in early 2023, AgriZeroNZ is investing in technologies such as methane vaccines, feed additives, and low-emission pastures to help farmers reduce emissions without impacting productivity. Their approach will help to ensure farmers have access to practical, effective tools that maintain profitability while meeting global sustainability demands.
“New Zealand’s agricultural sector faces significant pressure to reduce emissions, with 53% of the country’s emissions coming from agriculture, which makes us somewhat unique,” says AgriZeroNZ Chief Executive Wayne McNee.
“It means we’ve got a big risk, but also a big opportunity as well, because if we can find ways of reducing emissions while maintaining our profitability and productivity, then we can continue to support farming being a successful export sector.”
New Zealand’s dairy, meat, and wool sectors generated $34.5 billion in export revenue for the year ending 30 June 2024.
The organisation is half owned by government, through the Ministry for Primary Industries (MPI), and the other half owned by leading agribusiness companies: The A2 Milk Company, ANZ, ANZCO Foods, ASB, BNZ, Fonterra, Rabobank, Ravensdown, Silver Fern Farms, and Synlait. Private sector funding is matched by government, dollar for dollar.
With $191 million in funding over its first four years, AgriZeroNZ has already committed over $34 million to various projects, including methane vaccines, low-methane pastures and novel probiotics.
One of the most exciting investments is in methane vaccines, which Mr McNee describes as the “holy grail” of emission reduction solutions as it has the potential to be adopted into all farming systems. AgriZeroNZ has invested in two companies developing these vaccines: ArkeaBio in the United States and Lucidome Bio in New Zealand. A methane vaccine has the potential to reduce methane by 20% to 25% and is hoped to be available for widespread use by 2030.
Another significant investment is in Ruminant BioTech, a New Zealand company developing a slow-release, biodegradable methane-inhibiting bolus. Recent trials showed a 75% reduction in daily methane emissions over 100 days from a single treatment.
“We’re scanning the world for solutions, and are investing in companies, local and offshore, which are developing tools that will work in a pastoral farming system and making commitments to bring their products to New Zealand,” says Mr McNee.
“Our ambition is to ensure all farmers in Aotearoa have equitable access to affordable, effective solutions to reduce biogenic methane and nitrous oxide emissions, with a goal of supporting a 30% reduction by 2030 and enabling development and adoption of solutions to drive towards ‘near zero’ by 2040.This will require a widespread uptake of technology. It’s possible, but challenging.”
The urgency for these solutions stems from increasing pressure from international markets and trade agreements, with many global customers demanding proof of progress from their suppliers. Mr McNee says it is essential that New Zealand meets these demands to maintain its premium market position.
“Our customers certainly care,” McNee said. “All the premium customers that we’re supplying to have ambitious scope three targets of 30% reduction or more by 2030. Nestlé, Danone, McDonald’s, Tesco, Sainsbury’s – all of those will look elsewhere if we can’t meet their requirements and they’ve been very open about that.
“The potential for our farmers to have access to two or three emissions reduction tools by 2027 is exciting. This could be a game-changer for the agricultural sector, allowing our businesses to meet these stringent international requirements and potentially access premium markets for low-emission products.
“We’re seeing a shift from viewing emissions reduction as a challenge to seeing it as an opportunity for innovation and market leadership. There is potential for New Zealand to add ‘low emissions’ to its existing reputation for grass-fed, free-range products, creating new opportunities in the global market.”
