A new Lincoln Agritech research programme will find revolutionary ways of using naturally-occurring bacteria and fungi to increase the availability of nitrogen to plants and improve plants' tolerance to stress.
A second programme will work towards naturally removing 'off' flavours in wine.
Biotechnology team manager Dr Richard Weld, who is leading the research, says the Ministry of Business, Innovation and Employment has awarded the programmes a combined $8.2m.
"This is a notable achievement for a small organisation."
The first of the two projects will benefit the forestry and pastoral sectors by allowing pine trees and grasses to convert atmospheric nitrogen into plant-available mineral nitrogen in the same way that legumes such as clover do, and by improving the plants' tolerance to stress.