DairyNZ has secured $8.4 million in funding from the Government over the next seven years to develop genetically low nitrogen excreting animals and farm management strategies to reduce greenhouse gases.
Dr Bruce Thorrold, strategy and investment leader for productivity at DairyNZ, said the funding would enable the dairy industry to lower its environmental footprint - potentially by up to 20 per cent.
"We've got a lot of significant challenges that we want to address which require research to develop new options for farmers and this sort of partnership is a really good way to achieve those gains," Thorrold said.
"In the first instance we have to test whether or not animals that are physically different in terms of nitrogen efficiencies, whether that is genetically controlled, and if it is then we can breed for it."
The industry would know within two or three years whether it would be possible or not, he said.