Hon Minister Todd McClay

Minister of Agriculture

The Government and four further companies are together committing an additional $18 million towards AgriZeroNZ to boost New Zealand’s efforts to reduce agricultural emissions.

Agriculture Minister Todd McClay says the strength of the New Zealand economy relies on us getting effective and affordable emission reduction solutions for New Zealand.

“The AgriZeroNZ public-private joint venture is accelerating the development, commercialisation and adoption of practical tools and solutions for our farmers to meet our international climate change obligations.

“I am pleased to welcome The a2 Milk Company, ANZ Bank New Zealand, and ASB Bank as new shareholders of AgriZeroNZ.

“Collectively they’ll contribute $9 million over three years, matched by the Government, to help drive product development and commercialisation of new tools and technologies to reduce on-farm emissions.

“These new shareholders join the founding shareholders of ANZCO, Fonterra, Rabobank, Ravensdown, Silver Fern Farms and Synlait, alongside the Crown.

“This will take the overall investment in AgriZeroNZ to $183 million over the joint venture’s first four years. Fifty percent of this funding is Crown investment.

Todd McClay says investment from the new shareholders shows the increasing commitment of New Zealand businesses to help get emission reduction tools into the hands of farmers sooner.

“With the backing of both Government and private sector companies, New Zealand will be a global leader in developing the tools, technologies, and practices to drive down agricultural emissions while maintaining the productivity and profitability of our food and fibre sector.

“Meeting our climate change obligations and encouraging a booming agricultural sector are not mutually exclusive. Collaborations such as AgriZeroNZ will ensure that New Zealand’s economy and climate are well served,” says Mr McClay.

Notes

• AgriZeroNZ is a public-private joint venture under the Centre for Climate Action on Agricultural Emissions (Centre).
• The Centre’s aim is to drive product development and commercialisation of tools that can be used on farm, and includes an enhanced New Zealand Agricultural Greenhouse Gas Research Centre (NZAGRC) focused on fundamental research and wider emissions reduction research and development.
• The Crown’s shareholding in AgriZeroNZ is a single 50 percent block of the company’s shares, held jointly by the Ministers of Finance and Agriculture.
• AgriZeroNZ was incorporated as a limited liability company on 17 January 2023. Shareholding is proportional to partners’ total contributions over the four years. The Crown had previously committed to match ‘dollar for dollar’ additional investment up to $50 million per year. With the new shareholders, industry commitments plus the Crown contribution will see $183 million invested over the joint venture’s first four years.
• AgriZeroNZ has already progressed investments including:

a. an equity investment of $1.8 million in Ruminant Biotech, which is developing a methane inhibiting capsule;

b. $2.5 million to support ongoing New Zealand research on developing a methane vaccine and methane inhibitor for use on New Zealand farms; and

c. up to $4 million to support construction of a new greenhouse gas measurement facility. The total cost is $19.7 million with the balance funded by AgResearch and the Crown through the wider ANM Programme.

d. $4.2m in Hoofprint Biome, a US startup developing probiotics and natural enzymes aimed at reducing methane emissions by up to 80% while improving cow health.

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