Extra funding will enable the industry ramp up efforts to combat the virus, he said.
"The SFF Funding enables the oyster industry to continue and intensify selective breeding, but also bring changes to the way that oysters are farmed, so as to manage around and minimise oyster losses due to the virus."
Work will be done primarily at the Cawthron Institute's Nelson Shellfish Research Hatchery and on industry farms in Auckland, Coromandel and Northland.
Current oyster production is approximately one-third of 2009 production levels, which was worth $30 million in annual sales, McCallum said.
Four aquaculture projects were granted funding from the SFF, the first time the aquaculture sector has been able to apply following the creation of a merged ministry.
The three other approved projects were the Blue Mussel Over-Settlement Project (Marine Farming Association), the Environmental Certification for New Zealand Aquaculture (Aquaculture New Zealand), and the Kaitaia Spat Working Group Project (Marine Farming Association).
Overall, 61 projects were granted funding from the SFF, with a total allocation of about $8 million over three years.
Aquaculture New Zealand AQNZ chairman Peter Vitasovich said the funding success showed aquaculture was being acknowledged as a significant, sustainable primary industry.
"The funding makes it possible for the industry to invest further in delivering economic, environment and social benefits, through independent environmental certification, selective breeding of oysters, as well as work with spat and blue mussels," Vitasovich said.