Wayne McNee is the CEO of AgriZeroNZ
It’s great to see confidence quietly returning to rural New Zealand. After a tough stretch, there are signs of real momentum, with welcome improvements in pricing across our dairy, beef and sheep products.
Farmers are looking ahead with optimism and we know that when confidence spreads, so does the appetite to try new things, to invest, adapt, and lead.
This matters now more than ever, because while the day-to-day demands of farming will remain, there’s another underlying challenge to tackle on farm: reducing emissions.
Some say the answer is simple – just tax farmers or cut stock numbers. Others argue there is no problem at all, given our small contribution to global emissions. But like most complex issues, there is a crucial nuance that tends to get lost in the public debate.
It’s also worth remembering that some of the best ideas emerge from tough situations. While reducing agricultural emissions – especially methane – is one of the biggest climate quandries New Zealand faces, it’s also an opportunity to strengthen our reputation as a world leader in efficient, high-quality food production and to deliver more value to farmers and our country in the process.
We’re a small trading nation at the bottom of the world, relying on the sale of our premium grass-fed food products to premium, global companies.
We’re rightfully proud of our outsized contribution to global markets – with more than 95% of dairy production sent offshore as well as more than 80% of beef and sheep products.
Those exports power our economy, provide primary sector jobs and support our rural communities. But it means we have an outsized impact on methane emissions in the supply chain, too.
The companies that buy our exports (customers such as Danone, Mars, Nestlé, Tesco and McDonald’s) are acutely focused on this impact on their scope 3 emissions, and are increasingly calling for our help to curb it.
It’s widely acknowledged the solution will be technology-led and it’s great to see that our global customers are prepared to work with the sector on this – some are putting their money where their mouth is by supporting investment in tools and even paying farmers to use them.
We’ve earned our place as one of the most efficient producers of meat and milk in the world. But as new mitigation tools become more widely adopted overseas, that advantage could slip – especially as those tools aren’t fit for pasture-based farming like ours.
Proving our progress is about staying in the game. If we want to protect the value of our exports and preserve the trust of our global customers, we must be ahead of the curve and innovate in ways that strengthen NZ Inc’s story, brand, and bottom line.
AgriZeroNZ was set up to help farmers reduce emissions without compromising productivity and profitability. We’re scanning the world for solutions that could work on Kiwi farms and we’re working to provide farmers with a portfolio of affordable and effective tools to choose from.
So far, we’ve invested in 14 companies and research initiatives to accelerate the development and commercialisation of these tools.
We’re backing a range of options – from probiotics to feed additives, vaccines and pastures – because we know what suits one farm might not suit another, and some early-stage ventures may not make it to the farm at all.
Plenty of progress is being made, and the first of these tools from our portfolio could become available later this year – a methane-inhibiting bolus for cattle from Ruminant BioTech. In New Zealand trials, the bolus has shown an impressive 70% knockdown in methane emissions for more than 100 days. Once approved by the regulator, the company is planning a limited release for beef cattle.
A low-emissions ryegrass from BioLumic is expected to be next, with potential for increased productivity, too.
What’s particularly exciting about these two solutions is that they’re from companies with Kiwi roots, committed to providing solutions for New Zealand farmers that also benefit the wider economy.
The other companies we’re investing in have also committed to making their tools available here.
Importantly, these tools will be tested, proven, and safe, with New Zealand’s strict animal and food safety regulations in place to protect our animals and people, as well as our environment and export reputation, too.
We see collaboration as a strength. As a public-private partnership, we’re backed by some of the largest agricultural organisations in the country. This partnership is unique and powerful, aligning our ambition across the red meat and dairy value chain, from the farm gate to government and global markets.
We know the debate about climate and agricultural emissions has been loud, complex, and at times, divisive. But surely what we can agree on is that we want the sector to succeed.
At industry events, we’ve had farmers turning up with open minds and tough questions. They want to understand the science and make sure the economics stack up.
We also hear from farmers who are getting on with the job and ready to use the tools when they’re available.
After all, our sector was built by problem-solving farmers, who have a long history of facing changing markets and conditions with determination, innovation and skill.
The good news is we don’t have to choose between emissions reduction and prosperity – and we don’t have to sacrifice anything, either. We can build a future that lowers emissions, supports economic growth and protects our farmers’ way of life.
That’s the core of our work: to back the science, the ideas and the partnerships that will help farmers meet this challenge head-on.
Because when farmers thrive, so does our country.
And I reckon if any nation can crack it, it’s New Zealand.
AgriZeroNZ is an advertising sponsor of the Herald’s Agribusiness and Trade report.