Dairy hub to address sector's specific challenges

A dairy development and research farm will be established at Makarewa.

Two adjoining sheep and beef farms near Invercargill will be converted to dairying this season to create the Southern Dairy Hub.

The joint AgResearch, DairyNZ and Southern Dairy Development Trust initiative to create a dairy development and research farm aimed at addressing the sector's specific challenges through on-site science and innovation.

The 349ha property, at Makarewa, will supply Fonterra from the beginning of the 2017-18 season, initially milking 640 cows but with the intention of increasing to about 800.

The investment reflected the importance of dairying in the South and it was expected to deliver innovative, industry-led agricultural research and education opportunities, DairyNZ chairman Michael Spaans said.

''[It] will provide relevant, up-to-date local research for Southland dairy farmers. We are thrilled to see it now moving into the development phase and farmers will see research getting under way next season,'' he said.

In total, the start-up investment equated to $5million each from DairyNZ and AgResearch, and about $1.25million from the Southern Dairy Development Trust. The conversion process would start when the property was settled on November 1.

Trust chairman Matthew Richards said the development would help farmers further increase efficiency, productivity and sustainability.