Natural Treatment Could Milk Dairy Output

The study with Ancare Scientific Ltd. will take a year and cost more than NZ$500,000 ($377,000), said Andy West, chief executive officer of state-owned AgResearch Ltd., at the opening of the nation's Fieldays agricultural fair. Ancare Scientific has a development agreement with animal-treatments maker Merial Ltd.

According to the news agency Bloomberg, New Zealand is the world's largest dairy exporter and accounts for about 40 percent of the global trade in milk powders, butter and cheese. The nation is also the largest producer of sheep meat and kiwifruit, and agriculture accounts for about 38 percent of New Zealand's $104 billion economy.

According to Bllomberg West said that "It's an exciting deal" involving a natural biological product. "If it works in a large-scale, real-world farming situation, it will be a truly significant technology in global dairying." He wouldn't provide more details.

The Ancare trial is an example of the science New Zealand will need to use to remain competitive in international markets, West said. Half the nation's merchandise exports depend in some way on pastoral farming, he said.

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