Scientists at Crop and Food Research have discovered how to grow exotic mushrooms on pine trees.

Professor Wang Yun and Dr Ian Hall, of the New Zealand company, have become the first scientists to grow the orange saffron milk cap mushroom by injecting it into pine trees.

Following their discovery commercial production now seems likely. Hall believes it will have a huge impact on profitability. It could add up to NZ$4,000 a hectare to the value of New Zealand's pine forests.

It should be possible to grow up to 50kg of saffron milk cap a hectare, he said, and with prices between NZ$40-$80 a kilogramme the mushroom would yield returns of $2,000 to $4,000 per hectare.

The mushroom is found throughout Europe, Asia and North America and is popular with chefs for its fruity odour and pepper taste.

The scientists have been working towards this goal for six years. Crop and Food has begun negotiating a joint venture with a Japanese partner that will fund research in return for a licence to sell the mushrooms in Japan.