US market opens up for NZ Agritech firms

A $150-million market in the south-eastern United States has opened up to New Zealand agricultural technology with a deal between NZ Agritech and an offshoot of Eric Watson's Cullen Investments.

Agritech is New Zealand's industry body for firms selling agricultural technologies, such as seeds, electric fences, milking machines, weigh scales, animal health products and genetics. US-based Cullen Agricultural Technologies, owner of two Georgia farms, specialises in the commercialisation of these technologies.

They said this week they would work together to lower barriers to market entry.

Agritech chief executive Colin Kennedy said the US dairy industry offered a market potential three to four times bigger than New Zealand. Although US dairy farming was mainly based on grain-fed confinement, pasture systems were being developed. In Missouri since 2004 producers had invested more than US$100m (NZ$148m) into pasture-based dairies and the number of cows on pasture had grown from about 5000 to 20,000.

The high cost of fuel and supplementary feeds and low milk prices, together with sustainability and animal welfare issues, made pasture farming more attractive.

"A Dairy Farmers of America meeting in Memphis earlier this year told 350 dairy men that their best hope was to convert to New Zealand-style grassland dairying. That endorsement represents a massive opportunity for New Zealand technology exports."

He estimated the potential value of the market at US$100m.

Cullen chief scientific officer Richard Watson said south-east US was ideal for pasture-based farming. Cullen intended to substantially raise its farm ownership, which would help Agritech firms.