IHC Calf and Rural Scheme has been cancelled for the first time in 33 years due to the risk of spreading the Mycoplasma bovis disease.
The long-standing fundraising programme generates more than $1 million annually for people with intellectual disabilities.
IHC national manager fundraising Greg Millar said IHC would not be picking up calves or organising calf sales this year.
Millar said despite significant improvements in systems, the risk remained too high.
"This is an important decision and one that we have not made lightly.
"IHC looked at every possible way to keep the scheme running as is, but after deliberating with MPI [Ministry of Primary Industries] we determined it was too much of a risk.
"We have a real obligation to do what is right for New Zealand farmers, their livelihoods and long-term sustainability."
Self advocacy co-ordinator at IHC New Zealand, David Corner, has a mild intellectual disability and mild autism.
Corner who has worked at IHC for 21 years representing people who have an intellectual disability, said although this year's cancellation was personally sad, "it was the most responsible thing to do".
Corner was proud to be part of a scheme which "helps boost confidence and self-esteem" of those with an intellectual disability.
Southland farmers Chris and Charleen Withy have donated since 2004 and at times have pledged two calves. The couple have elected to make a cash contribution instead this year, equivalent to the price a weaner bull calf.
"It's a great charity that we have supported for the last 14 years, and it's something that we can easily do to help," said Chris Withy.
"I think they have made the right decision. If we are serious about eradicating Mycoplasma bovis, the industry and anyone associated with it, needs to do everything they can to minimise the possible spread of the disease."
Chair for IHC Association North Otago, Pip O'Connell, said she hoped people found other ways of supporting their work despite the cancelled fundraiser.
"Coming from a rural community and having a child with an intellectual disability, I know how important it is to have this local support."
PGG Wrightson general manager of livestock, Peter Moore, said the rural community had always been strongly behind the scheme.
"There may be disappointment that it's not running but the community will understand."
IHC provides up to $30,000 a year to local associations that goes towards resources such as the Take a Break programme for families, as well as the IHC library.
O'Connell said: "There certainly aren't "how to" books in our libraries to help us navigate our way through what to expect when we first learn of our child's diagnosis.
"Even seemingly simple things like toilet training or when it comes to going to school for the first time, or transition after school, the library is a huge resource."
IHC would like to encourage people who want to continue to support people with intellectual disabilities to donate and take part in our virtual calf scheme, donating $300 in lieu of a calf, by visiting www.ihc.org.nz/pledge.
"We would also like to acknowledge what a tough time this has been for farmers, and we're making a commitment to those in rural communities around New Zealand who have supported those with intellectual disabilities over the past 33 years.
"IHC is very grateful for the ongoing support in this difficult year of the key sponsors, in particular PGG Wrightson, who has supported us from the beginning of the calf scheme."
