The government is backing innovation to grow New Zealand’s high-value aquaculture exports, with a $455,000 investment from the new Primary Sector Growth Fund to support the development of specialized feed for King salmon, Agriculture, Trade and Investment Minister Todd McClay announced.
The $1.2 million project—led by Skretting—will design feed tailored specifically for New Zealand’s King salmon, supporting the growth of open ocean farming and helping reduce costs for local producers.
“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,” McClay said. “Feed is the biggest cost for salmon farmers. Getting it right is essential if we want to scale production and lift farmgate returns. This is part of our plan to grow aquaculture into a $3 billion industry. 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.”
The initiative comes as New Zealand’s first open ocean salmon farm—Blue Endeavour—receives final resource consent. Once operational, it is expected to produce 10,000 tonnes of salmon annually and generate up to $300 million in export revenue each year.
“This is about backing technology and expertise to lift productivity and strengthen the global competitiveness of our salmon industry,” McClay said.
Research will focus on optimizing feed for King salmon in New Zealand’s unique conditions, supporting sustainable, low-impact farming while boosting returns at the farm gate.
“This is another practical step in our wider plan to double the value of New Zealand’s exports over the next decade. We’re backing sectors with high growth potential and supporting the science that will help get them there,” McClay said.
Next-gen king salmon feed
Since 2019, Skretting has conducted research at its facility in Okiwi Bay, and with the funding's support, the company has intensified its focus on leading innovation, delivering tangible improvements for the existing industry while also preparing for future expansion, both for clients and new entrants.
Skretting's research facility at Okiwi Bay. Credits: Skretting
Okiwi Bay has been an invaluable asset for Skretting, enabling the validation of new raw materials, optimizing feed cost strategies, and paving the way for significant advancements, such as the commercial validation of algae oil. This trial led to the development of the world’s first King salmon feed containing no fishmeal or fish oil: Skretting’s Infinity concept. This innovation provides New Zealand salmon farmers with greater flexibility to mitigate risks related to the price and supply of marine raw ingredients.
“As we look ahead to the future of the New Zealand salmon sector, this partnership is focused on delivering real outcomes—fast-tracking the insights gained at Okiwi Bay into tangible commercial benefits for the industry. Together, we are committed to advancing New Zealand’s King salmon sector through innovative and practical solutions that support its long-term sustainable growth, said Melissa Abbott, general manager of Skretting Australia.
