Early Bird (Series Final) I Thursday May 1st 2025

Kiwi scientists make breakthrough in methane-reducing pasture, Fonterra to close Waikato canning facility, and farmers positioned for Indonesian dairy boom.

Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather!

 

Kiwi scientists make breakthrough in methane-reducing pasture

AgResearch scientists have recorded an 11 percent reduction in methane emissions from sheep fed genetically modified High Metabolisable Energy ryegrass. The small-scale trial conducted in containment facilities showed the modified ryegrass, with almost double the lipid content of conventional varieties, significantly cut emissions when measured as a percentage of gross energy intake.

The HME ryegrass programme, developed with support from Grasslanz Technology, PGG Wrightson Seeds and DairyNZ, has been identified as a potential game-changer for Kiwi farmers. Scientists working on the programme believe unrestricted grazing could deliver even greater methane reductions, while also improving productivity through increased nutritional value.

In a separate programme, researchers are progressing High Condensed Tannin white clover towards its first animal feeding trial scheduled for 2026. Early research suggests this modified white clover could reduce methane emissions by 15 percent while improving animal health and production. The team is currently growing the modified clover in Australia to produce enough seed for comprehensive feeding trials.

Meanwhile, AgResearch has paused its application for outdoor trials of ryegrass containing gene-edited endophytes in New Zealand. The decision comes as researchers await clarity from the Gene Technology Bill currently before Parliament, which could provide new pathways for trialling these modified endophytes. The modified endophytes aim to provide better plant protection while eliminating harmful effects on livestock that cause heat stress and ryegrass staggers.

 

Fonterra to close Waikato canning facility

Fonterra will close its Hamilton packaging and canning facility at the end of July as the dairy cooperative continues to reshape its business toward higher-value products. The Canpac site, which currently employs about 120 people, processes less than one percent of Fonterra's total product volume at approximately 4,000 metric tonnes of powder annually.

Fonterra chief operating officer Anna Palairet says the decision reflects the dairy giant's strategic shift toward focusing on its strengths in ingredients and foodservice. Low product volumes through the Hamilton facility combined with increasing production complexities have created challenging economic conditions that no longer align with the cooperative's direction. The company will now begin consultation with affected staff, including exploring potential redeployment opportunities for workers before operations cease on July 31.

 

Farmers positioned for Indonesian dairy boom

Kiwi dairy farmers stand to gain significantly from Indonesia's ambitious school milk programme that will require more than double the country's current milk supply, with potential to soak up NZ milk powder and possibly restart live cattle exports.

The new Indonesian government has launched a nationwide Nutritious Meals Programme targeting 60 million schoolchildren daily by 2029, creating massive new demand in a market where New Zealand has already been gaining ground. RaboResearch estimates the programme will require over 2 billion litres of milk annually once fully implemented.

For New Zealand dairy farmers, the timing couldn't be better. Our market share of Indonesian milk powder imports has surged from just 11 percent in 2019 to a commanding 39 percent today.