Research & Development

Landcorp Farming invests in research & development (R&D) that leads to improved farming techniques with economic benefit to the Company and to New Zealand agriculture generally.

Our investment is made through the funding of projects undertaken by leading science providers on contract to Landcorp, and through "industry good" R&D levies paid to Dairy NZ, Meat and Wool NZ and Deer Industry NZ. We maintain strong links to science providers including AgResearch, Crop and Food, and the Universities, and to other funding entities including the Sustainable Farming and the Foundation for Research, Science and Technology (FRST). Our contracted R&D is largely in partnership with other funders.

We draw on experience and knowledge within Landcorp to identify opportunities for R&D that will improve farming techniques and deliver higher financial returns. Our policy is to make an R&D investment each year equal to at least 1% of total Landcorp revenue. Funding proposals are assessed on standard business investment criteria and each project must involve a return of 15% or higher.

In principle, Landcorp intends to always own the intellectual property created by R&D at least in proportion to its level of investment. Some projects produce outcomes that cannot be protected, these recognised as a form of "industry good" R&D funded or part-funded by the Company.

In addition to contracted R&D, Landcorp contributes to the pastoral sector generally through compulsory levies for "industry good" R&D. These levies total approximately $600,000 per annum. In the case of the deer research investment, this is directly leveraged against $400,000 from DeeResearch and $1.6 million from FRST.

To achieve Landcorp's strategic objectives, new farming initiatives and techniques developed as a result of research and development are a continuing requirement.

Key areas include animal reproduction/production, soil and pasture quantity/quality, environmental issues such as nutrient leaching and GHG mitigation, and stock and plant disease management. These areas are limiting factors for Landcorp and industry performance, and require a technology-based solution.

Landcorp -

• The Company communicates new developments and techniques to the wider farming community subject to normal commercial practice in relation to the release of intellectual property.