The country’s biggest agri-sector corporations have thrown their support behind boosted greenhouse gas research, as the government moves to ratify its big budget play with industry.
The combined commitment over the first four years of $172 million is 50:50 funded by Crown and industry partners.
Those partners will also contribute $7.5m in the first year to June 30 next year, which will also be matched by the government.
Industry partners with the Ministry for Primary Industries include Synlait, Fonterra, Silver Fern Farms, ANZCO Foods, Ngāi Tahu and Ravensdown.
Fonterra’s plans for developing methane mitigation are already well down the track with its Kowbucha product in trial phase in herds around New Zealand, and a further $50m due to be invested over the next four years in methane reduction through the joint venture.
CEO Miles Hurrell said Fonterra knows that with the government on board it can achieve more by partnering with others, and is looking forward to working to find solutions that will benefit its farmers and the rest of NZ.
Fonterra’s head of sustainability, Lee Stewart, said the joint venture between the government and industry provides the horsepower to give NZ the ability to stand on the world stage and clearly declare it is trying to tackle pasture-fed biogenic methane emissions.
“If we can crack this, it is a gift NZ can provide to the world. It is building on an environment that is already the world’s perfect dairy farm, but where others are catching up,” Stewart said.
He welcomed the open, joint venture approach the centre will provide, enabling the inclusion of both northern hemisphere technology and locally developed technology in research.
He emphasised that working towards zero carbon is no longer a means to gain a premium for product but is now essential if farmers want to secure market outlets for their product.
“Two and a half years ago I would have had an inquiry about once every month on sustainability from a potential customer, now that is daily,” he said.
Stewart said large global customer brands now have funding and management incentives linked through to achieving sustainability and zero carbon targets, with the expectation greater than ever that it is being achieved behind the farm gate.
“Eighty percent of the questions are about ‘What are you doing behind the farm gate?’”
ANZCO Foods supply and sustainability manager Grant Bunting said farmers are being asked to reduce on-farm emissions, but outside of reducing stock numbers there are few tools or resources available to achieve that.
“ANZCO’s involvement in the joint venture is about being able to achieve more by working together with government and others in the wider industry to accelerate R&D development into technology and tools to benefit farmers,” he said.
Analysis by Beef + Lamb NZ on He Waka Eke Noa’s impact indicates it is medium to steeper hill country farmers in the North Island who will feel the greatest impact of gas mitigation costs, with fewer options available at present, other than to offset with trees.
Simon Limmer, CEO of Silver Fern Farms, said now agribusiness has skin in the methane reduction game it can help accelerate solutions into farmers’ hands, as quickly as possible.
The launch of methane inhibitors in NZ is still some years out, with regulatory changes needed to ensure inhibitors can be used legally. Some northern hemisphere countries have pushed ahead, incorporating products in their rationed feeding systems.
Agriculture Minister Damien O’Connor said the government remains committed to reducing agricultural emissions, and to do so NZ needs to have tools and tech in the hands of farmers as soon as possible.
“NZ can be and should be a leader in developing innovative new tools and technologies to reduce emissions on farm, and be the one other countries look to,” he said.
