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AgResearch plans to create a $6 million dairy research institute and development farm just south of Te Awamutu in the Waikato.
Chief executive Andrew West said yesterday the future of dairy farming was to differentiate the milk at the farm gate - before it even gets to the processing factory.
"We are setting up this farm to undertake research on different types of high-value milk influenced by the cow's own genetics, feed regimes, management regimes and various therapies," West said.
AgResearch already has a dry stock farm there which will be converted to dairying.
Agritech companies would be able to use the farm to test latest technologies in an intensive farming environment, he said. The farm would be set up in collaboration with Lincoln University, innovation Waikato and the Coalition of 21st Century high schools. It was hoped Waikato Polytechnic and the University of Waikato would also use the farm.
The work would include commercial R&D, training for students - from school age to PhD - and the existing farming workforce.
Meanwhile, AgResearch chairman Rick Christie has announced he will step down on June 30.