Agriculture Minister Todd McClay said the dairy project aimed to deliver a 20% reduction in nitrogen leaching per hectare while positioning the sector for sustainable growth and long-term resilience.
It would focus on creating an uplift in economic, environmental and social outcomes by creating replicable models for profitable and environmentally sustainable dairy farming.
Meanwhile, it’s also investing $3.55m in a five-year project to boost beef and sheep production led by Pāmu in partnership with a number of industry partners.
The Livestock Innovation Farming Transformation (Lift) programme – aims to unlock the productivity potential of hill country while protecting sensitive environments by showcasing how virtual fencing works on-farm.
“Lift will show farmers … what it can mean for farm performance,” Pāmu chief executive Mark Leslie said.
“This programme will help farmers unlock new opportunities while contributing to New Zealand’s economic future.”
Independent economic modelling shows Lift has the potential to deliver an additional $536m per year in farm‑gate returns by 2036, and a $1.25 billion uplift in export value by 2036.
Leslie said traditional fencing and grazing systems were often costly, inflexible and difficult to implement on hill country, limiting pasture management and farm productivity.
Lift responds directly to these challenges, exploring how wearable and virtual fencing technologies can deliver better outcomes at lower cost and with greater adaptability, building on lessons from Pāmu’s early adopter farms – Kapiro, Eweburn and Duncraigen – and scaling these insights to support wider adoption across the sector and within its own operations.
Lift will establish nine regional demonstration farms across the country, including Panekiri, a Pāmu farm on the East Coast.
Industry partners involved in the project include Halter, ASB, Anzco Foods, Silver Fern Farms, Farmax/FarmIQ, Beef + Lamb New Zealand, AgFirst, One NZ, and BakerAg NZ.
Horticulture and forestry
The Government has also partnered with horticulture giants Zespri and New Zealand Kiwi Growers Incorporated (NZKGI), investing $19.14m into a five-year commercial project to unlock greater value on kiwifruit orchards.
The kiwifruit industry and Zespri will contribute a further $28.73m combined cash and in-kind investment.
The programme will operate across all New Zealand kiwifruit-growing regions and varieties to grow more value from existing orchards with on-orchard innovation, advanced decision-support tools and applied science.
Zespri chief executive Jason Te Brake said the kiwifruit industry was expected to more than double its exports over the next 10 years through releasing new cultivars, developing more orchards and, importantly, maximising productivity on existing orchards.
“This programme will support growers to improve their orchard performance and production, while strengthening the value of our kiwifruit exports to meet the strong market demand for our premium products.
“Our industry has a strong history of being forward-looking, innovative and collaborative, and co-investment of this kind helps bring innovation to growers much faster than we could on our own.”
He said the opportunity was in getting more from the orchards through more precise growing practices, better decision-making tools and continuing to bring new science into orchards to improve production as well as delivering new varieties, which grow at higher yields in a wider variety of locations.
NZKGI chief executive Colin Bond said the programme was an important step forward for grower confidence and industry growth.
Tractors on show at Fieldays. Photo / RNZ, Nick Monro
“Growers are seeing strong global demand for New Zealand kiwifruit, and meeting that demand relies on having confidence in our ability to produce consistent, high-quality supply.
“This programme is about giving growers the tools, science and insights they need to lift productivity, improve returns and manage risk on orchard.”
The Government is also putting $3.2m over three years towards a new $8m feasibility study for producing prefabricated, fully fitted mass timber modules for the New Zealand market and potentially Australia.
The project aims to convert industrial-grade logs into higher-value timber for a range of applications, including use in the construction of hotels, student housing, apartments and offices, multiplying the logs’ value 6.7 times.
It will determine if this model of construction is likely to be successful in New Zealand, which includes analysing aspects such as design, technical performance, seismic resilience, productivity gains, cost efficiency and carbon savings.
Shifting supply from export to domestic markets also offers greater stability and encourages long-term investment in forestry and wood processing.
Māori agribusiness
The Government is also investing $2.6m over two years in improving Māori landowners’ understanding of their farming systems, production, land use and environmental performance.
This work is being undertaken in partnership with Te Arawa Primary Sector Incorporated.
“The project will work with Māori landowners to identify options to generate more value from their land, grow their businesses and help protect their whenua for future generations,” Māori Development Minister Tama Potaka said.
Early modelling identified potential productivity and profitability gains ranging from 10 to 30%, and reductions in greenhouse gas emissions ranging from 5 to 25%.
More than $5.3m in Māori Development Fund investments will support horticulture and aquaculture developments in Hawke’s Bay, Raupunga and Akaroa.
“Iwi and Māori in the primary sector make significant contributions to New Zealand’s economic success,” Potaka said.
“These investments are helping Māori businesses grow, create jobs, increase productivity and build long-term prosperity for their communities.”
Agriculture Minister Todd McClay (left) and Prime Minister Christopher Luxon were at Fieldays this week. Photo / RNZ, Nick Monro
Renewable energy will play a key role in intergenerational Māori business Parininihi ki Waitōtara Incorporation, increasing its ability to invest and diversify its asset base with renewable energy infrastructure using a mixed land-use whenua model.
In Hawke’s Bay, the Māori Development Fund is investing $2.6m in Hineuru Orchards – the largest cherry grower in the North Island – to support new protective infrastructure and orchard improvements.
It will help protect high-value crops from weather-related events and bird damage while supporting business plans to expand exports into Asian markets.
In Akaroa, the Māori Development Fund is investing $1.5m in Akaroa King Salmon to support infrastructure upgrades that will enable the business to scale production and meet growing international demand.
Akaroa King Salmon, a partnership involving Ōnuku Rūnanga and Ngāti Porou, expects the investment to support the creation of around 50 new jobs and significantly increase export revenue over the next three years.
“When Māori businesses succeed, local communities benefit through new jobs, increased incomes, stronger regional economies and greater opportunities for future generations,” Potaka said.
“These investments are helping unlock the potential of collectively owned iwi and Māori assets, and supporting long-term growth across New Zealand. This Government backs iwi and Māori to succeed and help to grow the New Zealand economy.”
Wool
Through the Primary Sector Growth Fund (PSGF), the Government is contributing $8m to the $20m project led by Wool Source Manufacturing Limited to scale up production of wool-derived particles, powders and pigments for use in products such as inks, 3D printing materials, personal care, bioplastics and textiles.
The project would establish a one million kilogram-per-year manufacturing facility in Christchurch to prove the technology at scale, support customer trials and generate early commercial production.
Wool Source – a subsidiary of the Wool Research Organisation of New Zealand (Wronz) – transforms wool into fine particles while retaining its performance benefits in versatile, bio-based materials.
These products provide new functionality or replace existing ingredients with a renewable, ethically sourced alternative.
The end markets being targeted are collectively worth more than $50b globally, and the project is believed to have the potential to redirect up to 20% of New Zealand’s strong wool clip into higher-value applications over time.
Wool Source chief executive Tom Hooper said securing Government backing alongside funding from Wronz marked a major milestone for the project.
“This investment provides the platform for Wool Source to move from pilot-scale activity to commercial-scale production and ultimately put significantly greater volumes of product into market.
“It will strengthen our ability to service brand-new demand for the benefit of wool growers, the strong wool sector and the New Zealand economy.”
A pilot plant at Lincoln University near Christchurch has helped prove the concept, he said – with 8 tonnes of wool particles exported to a personal care manufacturer in Japan.
“This next step is about commercialising that progress and creating a pathway for larger, more stable demand over time.”
Wronz chairman Andrew Morrison said strong wool pricing had improved over the past year, but the sector’s long-term strength would depend on a range of existing and new uses for strong wool, including wool-derived materials produced by Wool Source and the growing demand for wool carpets.
“This facility will not transform the strong wool sector on its own but represents a critical step alongside other good work already happening across the industry, including wool carpets and other established uses that are helping rebuild demand for New Zealand wool.”
Construction of the Christchurch facility was expected to begin by the end of the year, with commercial production set to get underway next year.
– This story was first published on rnz.co.nz