$16m for dairying research company

By PHILIPPA STEVENSON agricultural editor

The dairy industry has funnelled over $16 million into a new-look research company dedicated to re-establishing New Zealand's on-farm productivity at the top of the international scale.

At yesterday's launch of Hamilton-based Dexcel - coined as a contraction of dairying excellence - Dairy Board chairman John Roadley challenged the Government to match the industry funding.

"I can assure you you'll need to go a long way to find a better and more certain investment," he told Research, Science and Technology Minister Pete Hodgson.

Following a speech in which Mr Hodgson praised the industry as the country's largest investor in research and development, he indicated the Government was likely to accept Mr Roadley's challenge.

He said that funding decisions were made strictly by the Foundation for Research, Science and Technology but that a new co-funding approach with industry was being developed. "The Dexcel concept could be the first to be a partner under the new deal."

He said that by developing intellectual property with global appeal, the dairy industry could bypass barriers which restricted it to trading products in the 6 per cent of the world market traded internationally.

Mr Roadley said Dexcel was critical to the success of the Global Dairy Co, the company the industry has proposed be established by integrating the Dairy Board with a merged New Zealand Dairy Group and Kiwi Dairies.

"Everything we as an industry have built beyond the farm gate has been based on the single priceless advantage we have over our competitors - superiority in farm productivity," he said.

However, the gap between New Zealand farmers and overseas competitors had been closing, and it was intended that Dexcel refocus and revitalise on-farm research.