A merger of research heavyweights Crop & Food Research and HortResearch could be approved by the Government next month.
The boards of the two Crown research institutes have received permission from the Minister of Research, Science and Technology Pete Hodgson to investigate a merger.
HortResearch had revenue of
$65 million for the year ending June 30, 2007 and employed 490 people, while Crop & Food Research employed 380 people and had revenue of $56 million.
HortResearch worked with kiwifruit exporter Zespri to develop the Zespri Gold variety, which sold 22.4 million trays in the year ending March 31. HortResearch chairman Jim McLean said the increased scale would mean the business could tackle emerging issues faster, including sustainability and growing global demand for food.
"While there would be economies of scale achieved by a merger, it's really about two successful businesses merging to create one of greater critical mass which is sustainable in the long term, and able to deliver even greater value to New Zealand and to national and international clients," McLean said.
HortResearch acting chief executive Bruce Campbell said staff and stakeholders would be consulted before the proposal was completed. The concept would be examined to see if there were any problems not previously considered before a recommendation was made, he said.
Crop & Food Research and HortResearch are two of nine Crown research entities set up in 1992. Statistics New Zealand figures show they had total operating expenses of $584 million in the year ending June 30, 2007.
Crop & Food Research chairman Rodney Wong said a merger could offer potential for new opportunities and greater benefits.
"A merged organisation would serve to enhance and strengthen the collaborative science taking place and deliver innovation for industry faster and more efficiently."
