Work on agricultural solutions will outlast climate change skeptics – AgriZeroNZ boss

International efforts to reduce greenhouse gas emissions are in the spotlight, given that US President-elect Donald Trump is a known climate skeptic who wants the United States to withdraw from the Accord. Paris on the climate.

Buy McNee says major global food companies should still meet their climate change commitments.

New Zealand aims to reduce its greenhouse gas emissions (other than biogenic methane) to zero or less by 2050 and beyond.

The other two components aim to reduce biogenic methane emissions by at least 10% compared to 2017 levels by 2030, and by 24 to 47% compared to 2017 levels by 2050.

AgriZeroNZ’s work is to invest in finding ways to reduce emissions from ruminants – cattle, sheep and deer.

It seeks out start-up companies to help develop their technologies, working along similar lines to a venture capital fund.

It has investments in the United States, Europe and New Zealand.

McNee says New Zealand’s problems are different from most other agricultural-based economies because of its pasture-based system.

AgriZero has $191 million to invest over four years and has made seven investments so far, with more in the pipeline.

In September, AgriZeroNZ and the New Zealand Agricultural Research Greenhouse Gas Center invested $13.5 million in Lucidome Bio, which is spearheading the next phase of pioneering vaccine research against methane in the country.

He said a vaccine that reduced methane from ruminants would be a transformative tool for New Zealand’s agricultural sector and farmers around the world.

“Reducing emissions is widely recognized as the Holy Grail, as it is a low-cost, high-impact solution that has the potential to be adopted across all agricultural systems,” he told the era.

The funding follows the Bezos Earth Fund’s August announcement that it would provide $9.4 million to an international consortium tasked with gathering scientific evidence for a methane vaccine.

McNee said major global food companies are demanding solutions to climate change.

“The government has emissions reduction targets, but the main driver for us has been the call from the private sector like Nestlé, McDonald’s, Danone, Tescos and Sainsbury’s – they all have quite ambitious Scope 3 targets which they are attempting to reach. that’s why our ambition is to achieve a 30% reduction in emissions by 2030 (compared to the government’s 10% target),” McNee said.

In August, AgriZeroNZ invested a further $4 million in Ruminant BioTech to accelerate the commercialization of a methane inhibitor bolus specifically tailored to New Zealand’s pastoral farming system.

The slow-release biodegradable bolus sits in the animal’s rumen, releasing a controlled dose of a methane inhibitor for up to six months. The latest cattle trial demonstrated impressive results, showing a 75% daily methane reduction for 100 days from a single treatment.

The product is expected to be commercialized by 2025 – initially for beef.

McNee said there are different feed additives aimed at reducing emissions, but they are less applicable to a grazing-based system.

“But certainly…boluses, vaccines and long-acting formulations look very promising.”

McNee, former chief executive of NZX-listed Livestock Improvement Corp, says farmers’ response to climate change initiatives is mixed.

But in the dairy sector, most farmers are on board because of the targets announced by Fonterra, he says.

“(Fonterra) has invested in us to try to provide these tools to farmers, so most dairy farmers are getting them, and major customers in New Zealand have been very public about wanting to see emissions reduced,” McNee said.

“It’s a bit more difficult in the sheep sector because it’s harder to find things that work for sheep, and obviously the sector has been quite depressed in terms of profitability,” he said.

In the beef sector, major food chains are also investing heavily in climate change initiatives.

AgriZeroNZ has invested in three companies in the United States, generally from universities.

He doubts that climate change skepticism will affect the need to find tools to reduce agricultural emissions.

Earlier this year he met with representatives from Friesland Campina (Netherlands), Arla (Denmark) and Tirlan (Ireland) – all of whom have made public commitments to climate change “and continue to do so”.

“It comes down to the customer’s point of view.

“Will McDonald’s change its mind? Will major buyers of dairy products change their minds?

“It’s a long-term play and these things will take a few years to come to market, so we’re going to continue in the meantime to find things to invest in, and there’s a lot of private capital coming in from other countries. big funds too.

“I think the private sector will continue and do its job.”

Jamie Gray is an Auckland-based journalist covering financial markets and the primary sector. He joined the Herald in 2011.