The Government today announced it has invested $8 million in lower methane dairy genetics research.
This news followed the announcements last week of
- Lower biogenic methane targets for 2050, to a range of 14–24 per cent below 2017 levels by 2050;
- The appointments of two agribusiness leaders to the AgriZeroNZ board to help the public-private joint venture’s efforts to drive the adoption of new tools to reduce on-farm emissions
Agriculture Minister Todd McClay – at the opening of a new state-of-the-art methane research facility in the Waikato today – said the Livestock Improvement Corporation’s new ‘Methane Barn’ will enable large-scale monitoring and measurement of methane produced by lactating dairy cows.
“The research will enable farmers to select lower-emitting genetics and will be a valuable tool to help reduce biogenic methane without harming productivity, he said.
“This research further bolsters confidence in the pipeline of new mitigation tools – giving farmers the choice in how they get emissions down.”
The Government and industry have committed more than $400 million to speed up the development of methane-cutting tools with as many as 11 to be commercially available by 2030.
“We are committed to meeting our climate obligations without closing down farms and sending jobs and production overseas. Investments like the Methane Barn will offer farmers the tools they need to reduce on-farm emissions without reducing production,” Mr McClay says.
Two earlier Ministerial announcements in the past week have been:
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AgriZeroNZ board reinforced to drive methane reduction
Two experienced agribusiness leaders have been appointed to the AgriZeroNZ board to help the public-private joint venture’s efforts to drive the adoption of new tools to reduce on-farm emissions.
Agriculture Minister Todd McClay announced Simon Limmer and Murray Dyer have been appointed as directors for three-year terms. They will join an existing five-member board chaired by Rob Hewett.
Simon Limmer is a former chief executive of Silver Fern Farms and an experienced sector leader who contributed to the establishment of AgriZeroNZ.
He is the current chief executive of Indevin Group and is the Government’s appointee to the board.
Murray Dyer, the sector appointee, is a principal partner at Prime Markets.
“Both appointments will help drive AgriZeroNZ’s upcoming work to rollout and drive uptake of new mitigation technology – keeping Kiwi farmers productive whilst achieving our recently announced biogenic methane reduction targets,” the Minister said.
“Government and industry and have committed $400 million to accelerate the development new tools and technology to reduce on-farm agricultural emissions.”
AgriZeroNZ has already invested in 14 ventures and research projects with the first of these tools are expected to become available next year.
“We have increasing confidence in the pipeline of new mitigation tools. We expect to see up to 11 available by 2030,” Mr McClay says.
“We are committed to meeting our climate obligations without closing down farms and sending jobs and production overseas. This investment in AgriZero will offer farmers the tools they need to reduce on-farm emissions without reducing production.”
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Government sets methane targets for 2050
The Coalition Government announced science-based biogenic methane targets for 2050, to provide farmers and exporters with a clear pathway to reduce emissions while maintaining productivity and trade competitiveness.
Following Cabinet approval, the target will be set at a range of 14–24 per cent below 2017 levels by 2050, reflecting the findings of the independent Methane Science Review released in 2024.
“We’ve accepted a range of advice and worked closely with industry to agree a practical target that protects food production whilst substantially reducing New Zealand’s farm emissions. Today we’re delivering a practical, fair pathway that recognises New Zealand agriculture efficiency, protects jobs and production, and upholds our climate commitments,” Agriculture and Trade and Investment Minister Todd McClay says.
“The Government remains committed to our domestic and international climate change commitments, including net zero by 2050. Agriculture will continue make an important and fair contribution to achieving this reduction,” Climate Change Minister Simon Watts says.
The Coalition Government confirmed further policy changes alongside the new target:
- a legislated review in 2040 of the biogenic methane target to ensure its alignment with science and against progress of key trading partners;
- no tax on agricultural methane emissions as this would risk closing down farms and send jobs and production overseas. Reductions in methane to meet the targets will be achieved in partnership and through industry leadership and processor incentives following the lead of companies like Fonterra and Silver Fern Farms;
- investigate a split gas target for all of New Zealand’s future international climate change commitments;
- recognise and protect the importance of food production in New Zealand by better aligning domestic legislation with language in the Paris Agreement.
To back the new target, the Government is already investing more than $400 million with industry to speed up the development and roll-out of methane-cutting tools. The first is expected on farm in 2026, with up to 11 available by 2030. These include innovations like EcoPond, which cuts effluent pond emissions by over 90 percent, alongside advances in genetics, feed and farm management.
The announcement followed recent legislation limiting full-farm forestry conversions into the ETS, as part of a wider reset of climate policy to restore balance and certainty for rural New Zealand.
