New Zealand’s Crop & Food Research and HortResearch are looking at the possibility of a merger, and the country’s government could approve the move by next month.
The two government owned research institutes have already been given permission by Minister of Research, Science and Technology Pete Hodgson to investigate a merger, according to the New Zealand Herald.
HortResearch chairman Jim McLean said the merger would allow the institutes to deal with emerging issues faster.
“While there would be economies of scale achieved by a merger, it's really about two successful businesses merging to create one of greater critical mass which is sustainable in the long term, and able to deliver even greater value to New Zealand and to national and international clients,” he said.
HortResearch already has a commercially successful past; the institute developed the Zespri Gold kiwi variety with kiwifruit exporter Zespri, which sold 22.4m trays in the year ending in March.
The group had a revenue of NZ$65m in the 2006-2007 financial year, and Crop & Food Research hit NZ$56m.
Crop & Food Research chairman Rodney Wong agreed that a merger would streamline operations and offer greater potential.
“A merged organisation would serve to enhance and strengthen the collaborative science taking place and deliver innovation for industry faster and more efficiently,” he said.
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