May 6, 2025 • 6 mins
The chief executive of AgriZeroNZ defends the investment in methane emissions reductions being made on behalf of New Zealand farmers.
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Speaker 1 (00:00):
Wayne Mcnehe is the chief executive of Agri zero end Z,
a joint venture with the government in the industry, and
it's all about reducing emissions and how we're going to
go about doing it. But Wayne, it would be fair
to say that you and Agri zero end Zed have
your critics. Groundswell's one of them, and Jane Smith, north Otago,
(00:21):
very outspoken north Otago farmer, is another one of them.
This is what she had to say about mitigating against
methane earlier in the week. We spoke to David Seymour
about pulling out of the Paris Accord and I know
you're a bit of a poster girl for Groundswell, Jane Smith,
so you're all for it.
Speaker 2 (00:40):
Yeah, Well again, Jamie, the whole methane conversation has never
really happened, I mean the end of the day, and
you know this, and we all know this. Unfortunately, our
industry has painted ourselves into some sort of sacrificial corner
and we all know that methane, if it is steady
or decreasing, it is not adding to warming. So that
faccine to having markedly missed out. And what have we done.
(01:02):
We've actually doubled down and put more money wasted more
as taxpay money. I think there's another four hundred million
dollars in the pipeline to be used on meath and mitigation,
which just seems fastical when you think that could have
gone into real research, Jamie.
Speaker 1 (01:16):
So there you go, Jane Smith. Now with the falling
livestock Numberswayne McNee announced this week from Stats and Z
is it an issue?
Speaker 3 (01:26):
Well, Jamie, you thanks for that. And as you know,
I was also brought up on a sheep farm in
North Tago, so I do know it's been tough sheep
farming down there for a while. Our focus is on
reducing methane and notious oxide emissions from ruminants to meet
global customer goals and maintain market access and trade agreements.
And as long as our global customers continue to call
for lower missions milk and meat, then that continues to
(01:49):
be important for New zeal On because you know, we
export ninety five percent of what we make and major customers,
you know, the premium customers across all markets actually are
calling for lower products. So that's the key driver. It's
about the market. And if you do go back, I
know you had doctor Frank Mittler Lena on the show
earlier from UC Davis. He talked about the science side
(02:11):
of it. He's a scientist. I'm not, but very focused.
We're very focused on the market.
Speaker 1 (02:17):
Do the likes of China, our biggest each sports market
pay a premium for lower missions products at the moment?
Speaker 3 (02:24):
Well, we know that if you look at Deiry, the
major companies, like the premium companies like Nesle, Deno, Mars
and others are paying premiums and those are going through
to farmers and the meat sector. It's just becoming a
requirement to supply from Tesco, Sainsbury's, Whole Foods and the like.
China is an interesting one, isn't it, because you know
(02:44):
China just it is putting a massive investment into a
mission's reduction in China, huge move towards electric cars, and
it's just a matter of time, I would think before
they turn their focus onto animals. But you never know.
I mean at the end of the day, but China's
one part of our market. We have the premium part
of the market too that we also need to meet
(03:05):
their expectations.
Speaker 1 (03:06):
Are we getting bangs for our bucks with the money
you're investing on behalf of New Zealand farmers.
Speaker 3 (03:12):
Well, we think we are, so I've heard some numbers around,
but you know, we've had one hundred and ninety one
million collectively invested in US, or we'll have by the
end of next year, between the private and the public sector.
We've made fourteen investments so far across a range of
different tools, some in New Zealand, some off shore. The
first of those are expected to come to market in
(03:34):
New Zealand next year, and then we should see two
or three each year after that becoming available for New
Zealand farmers. Now those products will obviously be available in
other markets as well, and we know farmers and other
markets are looking to use technology, and some already are,
as Frank said, I mean in California, they're getting a
bit ahead of the game with the technology they are
able to access there.
Speaker 1 (03:55):
What do you say to people like me? Science alliterates
I left it behind and in the fifth form, what's
that year? Help me out here? We'll go with year
eleven there wayIn and I'm looking at these falling livestock
numbers and I'm thinking we're emitting less methane than we
did in nineteen ninety by a country mile. Why are
(04:16):
we worried about methane? Man, burning fossil fuel is the problem?
Speaker 3 (04:20):
Well, Man, burning fossil fuel is certainly a problem, significant problem,
and a lot of works happening around the world to
decarbonize various industries. But in our case, you know, we're
fifty three percent of our missions come from agriculture. Methane
is a significant proportion of that. And I'll just bring
you back again, like the amount of methane per kilo
of milk or meat is what the customer is thinking
(04:42):
about the emission's intensity, and that's where their focus is
when they buy milk or meat from us. You know
what emissions were produced in the production of that, and
the more we can do to reduce that the better
from their perspective. And we are going to be able
to do it.
Speaker 1 (04:56):
I mean.
Speaker 3 (04:56):
The good thing is there will be things available for
farmers to use, and they may they may choose not
to use them, and they may say they don't believe
in it or they don't want to focus in this area.
That's fine, but they will have options.
Speaker 1 (05:07):
Ultimately, will the market drive farmer behavior when there's a
premium for lower missions, milk or meat. Farmers will be
into it, boots and all.
Speaker 3 (05:15):
It's starting to happen now. We've seen the first of
it from Fronterra with its first announcements around incentives. We're
expecting the meat industry to have incentives as well over
the next couple of years. That's what we're hearing. And yeah,
and then farmers can make your choice. As I've said
on your show before, this is about giving farmers choice.
At the moment, there's not much they can do to
reduce emissions, and so I can understand why people get
(05:38):
upset about being asked to do so. But when these
things are available and they'll they'll have the choice, and
there'll be different, different technologies, different ways of using them.
We've got, you know, most recently the investment we announced
in whoprint biome a second one that's a technology that's
looking to reduce emissions but also improve efficiency of animals,
so better productivity by between five and eight percent, and
(06:00):
if you can get that with the same amount of feed, well,
that would be something I would have thought farmer would
be particularly interested in.
Speaker 1 (06:05):
Wayne mcneae, chef executive of Agri zero in Z look
forward to catching up at field days
Speaker 3 (06:11):
Yeah great thanks
Wayne Mcnehe is the chief executive of Agri zero end Z,
a joint venture with the government in the industry, and
it's all about reducing emissions and how we're going to
go about doing it. But Wayne, it would be fair
to say that you and Agri zero end Zed have
your critics. Groundswell's one of them, and Jane Smith, north Otago,
(00:21):
very outspoken north Otago farmer, is another one of them.
This is what she had to say about mitigating against
methane earlier in the week. We spoke to David Seymour
about pulling out of the Paris Accord and I know
you're a bit of a poster girl for Groundswell, Jane Smith,
so you're all for it.
Speaker 2 (00:40):
Yeah, Well again, Jamie, the whole methane conversation has never
really happened, I mean the end of the day, and
you know this, and we all know this. Unfortunately, our
industry has painted ourselves into some sort of sacrificial corner
and we all know that methane, if it is steady
or decreasing, it is not adding to warming. So that
faccine to having markedly missed out. And what have we done.
(01:02):
We've actually doubled down and put more money wasted more
as taxpay money. I think there's another four hundred million
dollars in the pipeline to be used on meath and mitigation,
which just seems fastical when you think that could have
gone into real research, Jamie.
Speaker 1 (01:16):
So there you go, Jane Smith. Now with the falling
livestock Numberswayne McNee announced this week from Stats and Z
is it an issue?
Speaker 3 (01:26):
Well, Jamie, you thanks for that. And as you know,
I was also brought up on a sheep farm in
North Tago, so I do know it's been tough sheep
farming down there for a while. Our focus is on
reducing methane and notious oxide emissions from ruminants to meet
global customer goals and maintain market access and trade agreements.
And as long as our global customers continue to call
for lower missions milk and meat, then that continues to
(01:49):
be important for New zeal On because you know, we
export ninety five percent of what we make and major customers,
you know, the premium customers across all markets actually are
calling for lower products. So that's the key driver. It's
about the market. And if you do go back, I
know you had doctor Frank Mittler Lena on the show
earlier from UC Davis. He talked about the science side
(02:11):
of it. He's a scientist. I'm not, but very focused.
We're very focused on the market.
Speaker 1 (02:17):
Do the likes of China, our biggest each sports market
pay a premium for lower missions products at the moment?
Speaker 3 (02:24):
Well, we know that if you look at Deiry, the
major companies, like the premium companies like Nesle, Deno, Mars
and others are paying premiums and those are going through
to farmers and the meat sector. It's just becoming a
requirement to supply from Tesco, Sainsbury's, Whole Foods and the like.
China is an interesting one, isn't it, because you know
(02:44):
China just it is putting a massive investment into a
mission's reduction in China, huge move towards electric cars, and
it's just a matter of time, I would think before
they turn their focus onto animals. But you never know.
I mean at the end of the day, but China's
one part of our market. We have the premium part
of the market too that we also need to meet
(03:05):
their expectations.
Speaker 1 (03:06):
Are we getting bangs for our bucks with the money
you're investing on behalf of New Zealand farmers.
Speaker 3 (03:12):
Well, we think we are, so I've heard some numbers around,
but you know, we've had one hundred and ninety one
million collectively invested in US, or we'll have by the
end of next year, between the private and the public sector.
We've made fourteen investments so far across a range of
different tools, some in New Zealand, some off shore. The
first of those are expected to come to market in
(03:34):
New Zealand next year, and then we should see two
or three each year after that becoming available for New
Zealand farmers. Now those products will obviously be available in
other markets as well, and we know farmers and other
markets are looking to use technology, and some already are,
as Frank said, I mean in California, they're getting a
bit ahead of the game with the technology they are
able to access there.
Speaker 1 (03:55):
What do you say to people like me? Science alliterates
I left it behind and in the fifth form, what's
that year? Help me out here? We'll go with year
eleven there wayIn and I'm looking at these falling livestock
numbers and I'm thinking we're emitting less methane than we
did in nineteen ninety by a country mile. Why are
(04:16):
we worried about methane? Man, burning fossil fuel is the problem?
Speaker 3 (04:20):
Well, Man, burning fossil fuel is certainly a problem, significant problem,
and a lot of works happening around the world to
decarbonize various industries. But in our case, you know, we're
fifty three percent of our missions come from agriculture. Methane
is a significant proportion of that. And I'll just bring
you back again, like the amount of methane per kilo
of milk or meat is what the customer is thinking
(04:42):
about the emission's intensity, and that's where their focus is
when they buy milk or meat from us. You know
what emissions were produced in the production of that, and
the more we can do to reduce that the better
from their perspective. And we are going to be able
to do it.
Speaker 1 (04:56):
I mean.
Speaker 3 (04:56):
The good thing is there will be things available for
farmers to use, and they may they may choose not
to use them, and they may say they don't believe
in it or they don't want to focus in this area.
That's fine, but they will have options.
Speaker 1 (05:07):
Ultimately, will the market drive farmer behavior when there's a
premium for lower missions, milk or meat. Farmers will be
into it, boots and all.
Speaker 3 (05:15):
It's starting to happen now. We've seen the first of
it from Fronterra with its first announcements around incentives. We're
expecting the meat industry to have incentives as well over
the next couple of years. That's what we're hearing. And yeah,
and then farmers can make your choice. As I've said
on your show before, this is about giving farmers choice.
At the moment, there's not much they can do to
reduce emissions, and so I can understand why people get
(05:38):
upset about being asked to do so. But when these
things are available and they'll they'll have the choice, and
there'll be different, different technologies, different ways of using them.
We've got, you know, most recently the investment we announced
in whoprint biome a second one that's a technology that's
looking to reduce emissions but also improve efficiency of animals,
so better productivity by between five and eight percent, and
(06:00):
if you can get that with the same amount of feed, well,
that would be something I would have thought farmer would
be particularly interested in.
Speaker 1 (06:05):
Wayne mcneae, chef executive of Agri zero in Z look
forward to catching up at field days
Speaker 3 (06:11):
Yeah great thanks
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