NZ Backs Innovation in Aquaculture with $455,000 Boost for King Salmon Feed

In a bold stride toward transforming its aquaculture sector into a $3 billion industry, the Government of New Zealand has announced a $455,000 investment through the newly established Primary Sector Growth Fund to support a groundbreaking project aimed at developing specialised feed for King salmon. Agriculture, Trade and Investment Minister Todd McClay unveiled the initiative today, hailing it as a major step forward for productivity, sustainability, and export expansion in the high-value aquaculture sector.

A Strategic Investment in Innovation

The total project budget stands at $1.2 million and will be spearheaded by Skretting, a global leader in aquafeed solutions. The primary focus will be on crafting feed formulations tailored specifically to New Zealand's King salmon, a premium species with distinct nutritional and environmental needs. The feed will be designed to optimize growth and health in the unique conditions of New Zealand's open ocean aquaculture zones.

“This funding comes from the Primary Sector Growth Fund, announced in Budget 2025 to support forward-leaning, high-impact projects that will drive productivity, innovation and export growth across the sector,” said Minister McClay.

The investment highlights the Government's commitment to supporting science-driven innovations that can propel industry competitiveness and sustainability, particularly as climate conditions and global market expectations evolve.

Driving Growth Through Open Ocean Farming

This initiative coincides with a major milestone in the aquaculture sector: the final resource consent granted for Blue Endeavour, New Zealand’s first open ocean salmon farm. Operated by aquaculture firm Sanford, the farm is projected to produce 10,000 tonnes of King salmon annually and could generate up to $300 million in export revenue each year once operational.

Minister McClay emphasized the economic potential of the new feed development: “Feed is the biggest cost for salmon farmers. Getting it right is essential if we want to scale production and lift farmgate returns.”

A Collaborative, High-Impact Project

Skretting will lead the research and development, working in collaboration with New Zealand-based aquaculture experts and salmon producers. The aim is to refine feed composition to improve digestibility, reduce environmental impact, and enhance growth rates, all while ensuring cost-efficiency for farmers.

The initiative aligns closely with the broader government strategy to diversify and strengthen New Zealand’s primary industries through sustainable innovation. The project will also examine how to minimize waste and emissions associated with salmon farming—a key concern for both regulators and environmentally conscious consumers.

Backing Long-Term Export Growth

“With the launch of Invest New Zealand this month, we’re also making it easier for world-leading innovators like Skretting to invest and grow here,” McClay added.

The feed innovation project is a part of New Zealand’s broader export acceleration strategy, which includes doubling the value of exports over the next decade. By boosting the productivity of high-value industries such as aquaculture, the Government is positioning New Zealand to become a global leader in sustainable seafood production.

“This is about backing technology and expertise to lift productivity and strengthen the global competitiveness of our salmon industry,” said McClay.

Looking Ahead

As climate change, food security concerns, and population growth increase global demand for sustainable protein sources, New Zealand’s proactive approach to aquaculture innovation may offer a blueprint for success. With projects like this, the country is not only securing a brighter future for its fisheries sector but also reinforcing its place on the world stage as a hub for green, high-tech primary industries.