New Zealand Secures $20 Million for Innovative Bioeconomy Research

The Bioeconomy Science Institute has announced it has secured over $20 million from the Endeavour Fund to support two innovative research programs aimed at transforming New Zealand’s food, biotechnology, and horticultural sectors. This funding represents a significant investment in the future of these industries, which are vital to the country’s economy.

The first program, titled Super-Storing: Extending the Life of NZ’s Perishable Fruits, has been awarded $10.2 million. Led by Associate Professor Robert Schaffer and Dr. Rosie Schröder, the initiative seeks to extend the storage life of fast-perishable fruits, such as summer fruits and berries, by replicating the long shelf life of kiwifruit. By employing advanced gene technologies, the research team aims to enable these crops to be stored and shipped via sea to markets in Asia and Europe, thereby enhancing export potential.

Currently, New Zealand’s fresh fruit exports contribute approximately $3.5 billion annually, with kiwifruit and apples being the primary products. This research initiative supports the New Zealand Government’s objective of increasing the total export value of horticultural products from $7 billion to $12 billion per year. It is anticipated that the program will generate over $600 million in additional domestic economic activity, reduce food waste, and lower carbon emissions by replacing air freight with sea freight.

“This work will directly benefit growers, extend harvest windows, and build resilience against extreme weather,” said Schaffer. “It’s about unlocking the full potential of New Zealand’s horticultural diversity.”

Transforming Forestry Residues into Premium Proteins

The second research program, Turning Pine Waste into Premium Proteins, has received $10.4 million in funding and is set to span five years. Led by Dr. David Hooks and Dr. Scott Knowles, this initiative focuses on using Precision Fermentation (PF) to convert pine forestry residues into high-value proteins. The project aims to transform softwood residues, which are often discarded or burned, into fermentation feedstocks through innovative chemoenzymatic methods.

These feedstocks will support the cultivation of engineered yeast strains capable of producing specialty proteins, such as osteopontin and casozepine, which mimic the nutritional benefits of traditional animal-derived ingredients. The research aligns with New Zealand’s transition towards a low-emission circular bioeconomy, addressing significant challenges in feedstock availability, manufacturing scale, and the regulatory environment surrounding gene technologies.

“This is more than a research program,” said Dr. Hooks. “It’s a blueprint for how New Zealand can lead in the next generation of food and biotech innovation. This is about creating value from what we already have. New Zealand has abundant bioresources and world-class science. Precision Fermentation allows us to connect the two.”

Dr. Knowles added, “By converting forestry residues into feedstocks, we’re unlocking a new pathway for sustainable protein production—one that aligns with global efforts to build climate-resilient food systems.”

The research team anticipates several innovations from this program, including novel enzymes to convert lignocellulosic biomass into fermentable sugars, yeast engineering for high protein expression, single-cell protein as a co-product for animal feed, and digital twin modeling to simulate and optimize PF processes.

About the Bioeconomy Science Institute

The Bioeconomy Science Institute is a collaborative organization formed by merging AgResearch, Manaaki Whenua – Landcare Research, Plant & Food Research, and Scion. This merger follows government reviews that highlighted necessary changes to optimize New Zealand’s scientific capacity for greater impact. Earlier this year, the government announced plans to consolidate seven Crown Research Institutes into four new Public Research Organizations, focusing on sustainable bioeconomy initiatives.

The new visual identity of the Bioeconomy Science Institute was unveiled by Hon Shane Reti, Minister of Science, Innovation and Technology, during his recent visit to the Lincoln campus. “This is an exciting step in sharing our new organization with the outside world,” said Mark Piper, Transition Chief Executive. “As we start our journey as Bioeconomy Science Institute, it’s great to share this new visual identity which reflects the organization we are building for the benefit of Aotearoa New Zealand and the world.”

In addition to the funding for the research programs, Minister Reti announced $6.5 million in new industry funding aimed at developing methods to reduce methane emissions from grazing livestock. He also witnessed the signing of a new licensing agreement with Nelson-based Seaweave to commercialize aquaculture monitoring technology, further emphasizing the government’s commitment to advancing sustainability in New Zealand’s agricultural practices.