Dairy and meat innovation centre planned for Waikato

Derek Fairweather

More than 20 organisations are trying to establish a major new livestock-derived food and ingredients innovation centre in Hamilton.

They include Crown research institute AgResearch, the agricultural technology-focused Waikato Innovation Park and key rural sector operators such as Livestock Improvement Corporation, Gallagher Group, NDA Engineering, Pavilion Technologies and Open Country Cheese.

The aim of the centre - focused on dairy and meat products - will be to help boost the value of the national food and beverage sector's $14.8 billion worth of annual exports through research and development, education and commercialisation of ideas.

"There's a real desire now from Government to look at food and the pastoral sector, and what we can do to raise our export earnings significantly," said Innovation Waikato chief executive Derek Fairweather.

However, he said Fonterra and Waikato-based meat processor Affco were not committing as partners, although Fonterra had given the park a letter of support.

With many other centres - Manukau, Palmerston North and Canterbury - also seeking state funding for food centre projects, Fairweather believed Fonterra and Affco were waiting to see how things developed.

Affco chief executive Tony Egan confirmed his company was taking a wait-and-see approach.

On whether there was a need for such a centre in New Zealand, Egan said: "We support any initiatives that add value, providing it does achieve its goal. Often as not it's public money and it needs to be well spent."

Fonterra CEO Andrew Ferrier said he did not know enough about the Waikato proposal to comment. But Fonterra might put money into it if it decided it was a sound investment or might simply endorse the idea.

Although disappointed at Fonterra and Affco not being on board, Fairweather said: "From their commercial perspectives, it's entirely sensible."

He hoped to convince them to join. "I never give up."

Fairweather believed the Waikato was the best place for a key food innovation centre given the "critical mass" of companies in the sector operating in the region.

The plan is to use land between AgResearch, the adjoining Innovation Park and nearby Waikato University to set up a livestock-derived food and ingredients innovation "campus". Some $20 million would be needed to establish base infrastructure.

The park last week signalled to the district council it needs a re-zoning for the scheme.

It has also made an application, with AgResearch and tertiary education providers, to the Tertiary Education Commission for $1 million to create an ag-bio innovators' academy. This would work with companies on the commercial development of products.

Other plans include extending AgResearch dairy and abattoir facilities and establishing a range of other services. Private companies would be encouraged to set up inside the zone. The target completion date for the project is 2011.

Fairweather imagined funding for the centre would come from a mixture of public and private sources.

The plan was for the centre to collaborate with other food sector clusters and operate nationally.