Livestock farmers could have access to several new tools to reduce methane and nitrous oxide emissions within three years, says the head of a group investing in such research.
Wayne McNee, CEO of AgriZeroNZ, told the Red Meat Sector Conference in Wellington that the private-public partnership has $191 million in funding jointly provided by companies and the government to invest in technology to help farmers reduce emissions by 30% by 2030.
It has an ultimate aim of finding solutions that will allow “near zero” emissions by 2040 – and doing so while still maintaining farm profitability and productivity.
He said New Zealand’s key and most influential global food customers require suppliers to reduce their emissions.
By 2025 Nestlé requires a 20% and Mars a 27% reduction in Scope 3 emissions, those which come from activities from assets not owned or controlled by them.
Other leading customers, such as Danone, McDonald’s, General Mills, Kraft Heinz, Sainsbury’s and Tesco all have 2030 emission reduction goals ahead of 2050 net zero targets.
AgriZeroNZ’s private funders are a2, Silver Fern farms, Fonterra, ANZCO, Synlait, Ravensdown, Rabobank, ANZ, ASB and BNZ.
It is seeking further investors.
So far it has invested $29.2m in 10 projects but has a further 77 potential opportunities.
It is making strategic investments in emissions reduction technology both locally and globally, a market that is attracting billions of dollars of investment including from foundations linked to billionaires Bill Gates and Jeff Bezos.
McNee said planting trees to offset emissions is not a sustainable alternative; tools are needed to reduce overall emissions.
A 30% reduction by 2030 is achievable, he said.
McNee said most of AgriZeroNZ’s business is building global partnerships, assessing emerging trends, agitating for change and having input into NZ regulatory settings.
It also acts as a venture fund investor to accelerate opportunities, capability and unblocking constraints.
McNee said AgriZeroNZ is not investing in emission reducing genetics because other entities are.
Its other investments are in a NZ company, Ruminant Biotech, which is developing a slow-release biodegradable methane inhibiting bolus.
It is also financially supporting NZ researchers working on methane vaccines and inhibitors and has invested in Hoofprint Biome, a United States company developing probiotics and natural enzymes that could potentially reduce methane emissions by 80%.
AgriZeroNZ has also invested in NZ company BioLumic, which is breeding high producing, low emissions grass species, and ArkeaBio, a US company developing a methane vaccine.
It has made two other investments that it cannot yet disclose.
McNee said the investment is only part of product development. It also needs proof of concept, to be trialled and to have regulatory approval granted before commercialisation.
McNee said he is working with regulators to assist with the looming regulatory approval process but is also watching closely the impact of the coalition government’s crackdown on regulations.
He said it is up to farmers whether they adopt new products but there is a significant financial incentive in being able to continue supplying premium customers.
“If they can’t access premium customers then they will have to access markets who do not pay as well.”
Lockwood Smith, a former minister of trade and agriculture, asked if AgriZeroNZ’s aim should be to improve animal efficiency instead of reducing emissions, a target he said is more sustainable and achievable.
McNee said animal performance once treated with a product is a crucial factor in assessing product suitability, and some are showing they are improving growth rates.
