M e m o r a n d u m   o f  
U n d e r s t a n d i n g  
1982
relating to 
A public-private joint venture to reduce biological emissions 
Act 
The Crown (represented by the Ministry for Primary Industries) 
 
and 
Information 
ANZCO Foods Limited 
 
and 
Fonterra Co-operative Group Limited 
 
and Official 
Ngāi Tahu Holdings Limited 
 
and 
Ravensdown Limited 
the  and Silver Fern Farms Limited 
 
and 
under  Synlait Milk Limited 
 
date 
Released 

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Contents 
1. 
Definitions ................................................................................................................... 2 
2. 
Purpose of Memorandum ........................................................................................... 3 
3. 
Entity Form .................................................................................................................. 3 
4. 
Purpose of the public-private joint venture .............................................................. 3 
5. 
Investment objectives ................................................................................................ 3 
1982
6. 
Functions and powers ................................................................................................ 4 
7. 
Duration ....................................................................................................................... 4 
Act 
8. 
Protection of Partner Interests .................................................................................. 4 
9. 
Funding ....................................................................................................................... 5 
10.  Shares ......................................................................................................................... 5 
11.  Governance ................................................................................................................. 6 
12.  Management ................................................................................................................ 7 
13.  Portfolio of investments ............................................................................................. 7 
Information 
14.  Relationship with an enhanced NZAGRC as part of the ‘Centre for Climate Action 
on Agricultural Emissions’ .................................................................................................. 7 
15.  Intel ectual property ................................................................................................... 8 
16.  Confidentiality and Privacy ........................................................................................ 9 
Official 
17.  Communications ....................................................................................................... 10 
18.  Status of Memorandum ............................................................................................ 10 
the 
19.  Commerce Act considerations ................................................................................ 10 
20.  General ...................................................................................................................... 11 
 
under 
Released 
 

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This Memorandum of Understanding is made on 
2022 
between 
(1)  The Crown (represented by the Ministry for Primary Industries)  
and 
(2)  ANZCO Foods Limited (ANZCO) 
and 
(3)  Fonterra Co-operative Group Limited (Fonterra) 
and 
(4)  Ngāi Tahu Holdings Corporation Limited (Ngāi Tahu Holdings) 
1982
and 
(5)  Ravensdown Limited (Ravensdown) 
Act 
and 
(6)  Silver Fern Farms  Limited (Silver Fern Farms) 
and 
(7)  Synlait  Milk Limited (Synlait) 
 
Introduction 
A. 
There is broad consensus across industry, government, Māori, and the research community 
that a step change in investment and activity is needed to deliver biological emissions 
Information 
reduction tools and practices to support meeting New Zealand’s 2030 and 2050 greenhouse 
gas targets while remaining internationally competitive.  
B. 
To facilitate the step change, the Budget 2022 Climate Emergency Response Fund has 
allocated $338 mil ion to support the Agriculture research and development actions identified 
in the 2022 Emissions Reduction Plan, including the establishment of a Centre for Climate 
Action on Agricultural Emissions (Centre) to drive the development of mitigations. 
Official 
C. 
It is proposed that the Centre wil  consist of a new public-private joint venture (JV) focused 
on product development and commercialisation of a portfolio of mitigations which would be 
the principal vehicle for private sector investment, and an enhanced New Zealand 
the 
Agricultural Greenhouse Gas Research Centre (NZAGRC) that wil  provide the foundation to 
support both the JV and wider biological emissions reduction efforts. Completing the Centre 
wil  be a ‘scaffold’ that supports partnership, connections, and strategic alignment across the 
Centre’s core components and the biological emissions system more broadly.  
D. 
Several companies have been working with officials from MPI, MBIE, and DPMC to 
under 
investigate how the Crown and the companies can work together to substantial y increase 
investment into research to mitigate greenhouse gas emissions from agriculture (biogenic 
methane and nitrous oxide) via a new JV. The companies involved in these discussions are: 
Fonterra, Ngāi Tahu Holdings, Ravensdown, Silver Fern Farms, ANZCO and Synlait 
(Companies). 
E. 
The Companies are al  members of the Sustainable Business Council and the Climate 
Leaders Coalition, and as such make meaningful and increasing commitments to reduce 
their greenhouse gas emissions and those of other companies they work with. It is critical 
that these emissions are reduced: first and foremost, to reduce the impact on the climate; but 
Released also to protect and enhance New Zealand’s reputation as a producer and supplier of 
premium food and fibre products to the world so that we do not squander our very significant 
current and potential advantage.  
F. 
The Companies see a concerted, structured research initiative such as could be achieved 
via the JV as a way to make a much greater impact on New Zealand’s greenhouse gas 
emissions from agriculture, which make up 48% of New Zealand’s emissions profile. 
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G. 
Accordingly, the Companies are supportive of partnering with the Crown in the JV to focus 
investment on co-ordinated potential solutions that can material y benefit the New Zealand 
Food and Fibre sector in the medium to long term. Initial (and in some cases substantial) 
research has been undertaken on a range of potential solutions (such as feed additives, 
genetics, and vaccines), but the Companies and the Crown want to rapidly accelerate the 
development phase of such solutions. This wil  require a significant and sustained increase 
in focus, capital, capability, and research and development (R&D) funding. 
H. 
The overal  outcome of the JV wil  be that all New Zealand farmers and land stewards, 
including Māori agribusiness, iwi, and hāpu interests, have access to affordable and proven 
tools and technologies to reduce agricultural greenhouse gas emissions. 
1982
It is agreed 
1. 
Definitions 
Act 
1.1 
Unless the context otherwise requires, the fol owing words shall have the following meaning: 
Board has the meaning given to that term in clause 11.1; 
Centre has the meaning given to that term in recital B; 
CEO has the meaning given to that term in clause 12.2; 
Information 
Companies has the meaning given to that term in recital D; 
Companies Act means the Companies Act 1993; 
Company has the meaning given to that term in clause 3; 
Competitively Sensitive Information has the meaning given to that term in clause 19.3; 
Official 
Confidential Information has the meaning given to that term in clause 16.2; 
the 
Director has the meaning given to that term in clause 11.1; 
Independent Chair has the meaning given to that term in clause 11.1; 
JV has the meaning given to that term in recital C; 
under 
MOU means this Memorandum of Understanding; 
NZAGRC has the meaning given to that term in recital C; 
Parties means the Crown, Fonterra, Ngāi Tahu Holdings, Ravensdown, Silver Fern Farms, 
ANZCO, and Synlait and Party means any one of them, as the case may be; 
Recipient has the meaning given to that term in clause 16.2; 
Released R&D has the meaning given to that term in recital G; and 
R&D Plan means the Biological Emissions Reduction Science Accelerator research and 
development plan. 
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2. 
Purpose of Memorandum 
The purpose of this MOU is to record the Parties intention (subject to agreeing and entering 
further comprehensive and legally binding arrangements) to work together towards the 
establishment of a public-private JV that meets the respective interests of the Parties and set 
out the key aspects of the proposed JV.  
3. 
Entity Form  
1982
Following discussion, it is anticipated that the JV wil  be formed as a limited liability company 
(Company).  
The Parties believe a Company wil  best support the objectives for the JV as this vehicle:  
Act 
a)  provides an easily understood and commonly used commercial vehicle; 
b)  enables effective governance and application of commercial disciplines; 
c)  enables flexibility in terms of functions and use of commercial operating models; 
d)  facilitates accountability for all Parties (Crown and private) through the structure; 
e)  facilitates investor (shareholders) entry and exit; and  
Information 
f)  provides procedures and mechanisms for investors to influence strategic direction, 
where and when appropriate. 
4. 
Purpose of the public-private joint venture 
Official 
4.1 
The purpose of the JV is to undertake targeted investments and actions to accelerate the 
development, commercialisation and/or deployment of effective and affordable solutions that 
wil  be used by New Zealand farmers and others to significantly reduce biogenic methane 
and nitrous oxide emissions. 
the 
5. 
Investment objectives 
5.1 
The shared investment objectives for the purpose of the JV of the Parties, include: 
under 
(a)  accelerating the development and adoption of pastoral farming solutions for reducing 
methane and nitrous oxide emissions;  
(b)  coordinating and aligning capability across the public and private sector, including 
partnering with offshore parties to maximise the ability to accelerate the development, 
commercialisation and/or uptake/adoption of effective and affordable solutions to 
significantly reduce biogenic methane and nitrous oxide emissions; 
(c) 
increasing commitment between industry and government, and increasing the amount 
Released  of investment; 
(d)  investing for returns not only in the traditional financial sense, but in a way that can be 
measured through the six capitals of value creation: natural capital, social capital, 
financial capital, manufactured capital, intel ectual capital, and human capital; and 
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(e)  support the New Zealand primary sectors’ competitiveness and reputation for 
sustainable production in a world where environmental credentials are increasingly a 
driver of commercial success. 
6. 
Functions and powers 
6.1 
The JV wil  need to be highly flexible and adaptive to achieve its purpose.   
6.2 
While a prescribed set of functions is not intended, the JV’s functions are expected to 
include: 
1982
(a)  Research & development - Drive a targeted research and development programme - 
concentrating effort and investment on a portfolio of promising solutions or mitigations.  
The JV wil  have the flexibility to contract others to do R&D (particularly in Act 
collaboration and close alignment with NZAGRC) or employ its own workforce and 
have its own facilities to undertake the R&D if others are lacking what is required. 
(b)  Commercialisation - Support the pathway to uptake / commercialisation of solutions, 
with the flexibility to undertake commercialisation activities itself and/or licence others 
to do so. 
(c) 
Funding & partnerships – Develop partnerships and raise funds from the private and 
public sectors to finance the development of potential solutions, enabling the use of 
intel ectual property within agreed frameworks – see the section on ‘Intel ectual 
Property’. The JV wil  have the ability to raise debt, but only if agreed by special 
Information 
resolution of shareholders.  
7. 
Duration 
7.1 
The JV wil  have a long-term commitment to producing solutions for reducing biogenic 
methane and nitrous oxide emissions. The investment in the JV will require a long-term 
Official 
commitment, for at least an initial 10-year period. Noting that there wil  be mechanisms for 
shareholders to exit and enter. 
the 
7.2 
Alongside other accountability mechanisms, regular reviews (3 years and 8 years) wil  be 
undertaken to gauge progress and to confirm, or not, the need for the JV to continue as well 
as assessing whether the Crown stil  needs to maintain a 50% shareholding or significant 
shareholding. 
8. 
Protection of Partner Interests 
under 
8.1 
Under the Companies Act, a number of material decisions are already reserved for special 
resolution of shareholders including approval of a major transaction, putting the company 
into liquidation, altering, or revoking the constitution, and approving an amalgamation. 
8.2 
It is anticipated that there may also be a smal  of number of additional areas of interest—
Crown, private sector, or both—that may also require specific provisions (reservations) for 
shareholding decision. These might include, inter alia,  
Released (a)  facilitating Crown accountability and oversight obligations; 
(b)  critical international partner investments; 
(c) 
thresholds for investment decisions; and 
4 
 

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(d)  protection of minority shareholder interests. 
8.3 
The Parties wil  work cooperatively to identify these interests and agree on the appropriate 
mechanisms for addressing these in formal company documentation and processes.  
9. 
Funding 
9.1 
The Parties agree funding wil  be in proportion to shareholding in the JV. 
9.2 
Initial set up costs and funding for the first year are expected to be in the range of $1.8m for 
1982
the operations of the JV and $3.6m per annum thereafter.  
9.3 
Funding of projects wil  depend on the Strategy and investment decisions made by the 
Act 
Board, but a four-year commitment to funding wil  be agreed (until the first review). 
9.4 
The Financial Year for investment wil  be 1 July to 30 June. 
9.5 
The companies agree to scale up annual investment (including operating and programme 
costs) in the JV from 22/23 to reach the following indicative individual annual commitments 
by no later than the 24/25 Financial Year (noting the MOU is non-binding so it is only 
indicative). 
Company 
Year 1 (half) 
Year 2 
Year 3 
Year 4 
Information 
s 9(2)(j), s9(2)(g)(ii)
ANZCO 
Fonterra 
Ngai Tahu Holdings 
Ravensdown 
Official 
Silver Fern Farms 
Synlait 
the 
Sum of Company 
Contribution 
Total including Crown 
Contribution under 
 
9.6 
The Crown wil  match dol ar for dol ar the annual sum of company investment up to a total of 
$50 mil ion per year. 
9.7 
Notwithstanding clause 9.3 of this MOU, the funding commitments of the Parties wil  be 
subject to specific drawdown requirements agreed by the Parties in the Shareholder’s 
Agreement. 
Released 
10.  Shares 
10.1 
The Crown wil  have 50% of the shares and the private sector participants will have the other 
50% of the shares. 
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10.2 
A share in the Company wil  confer on the holder:  
(a)  the right to one vote on any resolution; 
(b)  the right to a share in any dividends authorised by the Board in proportion to 
shareholding; and 
(c) 
the right to an equal share in the distribution of the surplus assets of the Company. 
10.3 
Shares may be issued on a partly paid basis and calls made as funding is required, with the 
extent of lock-in to be agreed. 
1982
10.4 
Different classes of shares may be issued to:  
Act 
(a)  confer special, limited, or conditional voting rights; and 
(b)  limit or restrict transferability. 
11.  Governance 
11.1 
There wil  be a minimum of six directors (Directors) and a maximum of eight, and an 
independent chair (Independent Chair) comprising the board of the Company (Board). 
11.2 
The Directors of the JV wil  all be appointed based on their experience, skil s and expertise 
Information 
judged against an agreed set of objective criteria.  
11.3 
Rights to appoint Directors (other than the Independent Chair) wil  reflect shareholding, with 
the Crown and the Companies (as a col ective representing 50% private sector 
shareholding) each appointing the same number of directors. It will also be critical that the 
collective skills of the Board members create a strong whole.  The process for appointing 
directors wil  therefore be undertaken collectively to the extent possible while also providing 
Official 
clarity on how both the Crown and private sector appointments wil  be made. 
11.4 
The Independent Chair appointment process wil  involve all shareholders working 
collaboratively to agree a candidate they all are comfortable with to put forward to the 
the 
Minister. Ministerial approval is then expected on this basis.  
11.5 
Board decision making wil  be by consensus where possible. 
11.6 
There wil  be an establishment committee made up of the chief executives of the Parties to 
oversee the effective set-up and commencement of the JV. An Independent Chair of the 
under 
establishment committee could be appointed to support transition to the JV legal entity.  
11.7 
The Board wil  have al  the powers normal y reserved to a board of a commercial company. 
Key decisions for the Board could include: 
(a)  approval of the annual business plan; 
(b)  approval of the strategic plan; 
Released (c)  any material changes to the business plan or portfolio of work, budget and cashflow 
forecast; 
(d)  entering into a contract or arrangement with shareholders (this could require both 
Board approval and a special resolution of shareholders); and  
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(e)  the financial policies of the Company. 
12.  Management 
12.1 
The business and affairs of the Company wil  be managed under the direction or supervision 
of the Board. The Board wil  be accountable to shareholders for performance of the JV. 
12.2 
The Board wil  appoint a chief executive officer (CEO), who is accountable for day-to-day 
management of operations. 
1982
12.3 
The CEO wil  appoint the executive team. 
12.4 
The JV wil  employ staff with relevant commercial, science, legal, intel ectual property 
Act 
expertise and experience, and use appropriate external advisory support as required, to 
ensure that it can perform its functions. 
13.  Portfolio of investments 
13.1 
The JV is intended to undertake a portfolio of investments that wil  help to accelerate delivery 
of biological emissions tools to all New Zealand farmers.  This could include investments in 
R&D, infrastructure, and/or capability. 
13.2 
The portfolio of investments approach wil  enable the JV to make decisions that balance risk 
against opportunity, recognise and respond to Māori agribusiness needs and opportunities, 
Information 
and address specific interest and sector needs (e.g., red meat, dairy, species specific). 
13.3 
Initial (and in some cases substantial) research has already been undertaken on a range of 
potential solutions (such as feed additives, genetics, and vaccines). 
13.4 
The JV will need to work in partnership with the broader ecosystem both locally and global y 
Official 
to accelerate the creation and deployment of solutions, while actively minimising 
unnecessary duplication.  
13.5 
To rapidly accelerate the development of such solutions, the JV will need to use a range of 
the 
commercial operating models, building on what is already in place (including considering 
investment in existing projects and programmes and priorities identified in the R&D Plan and 
work being undertaken by the NZAGRC). The JV wil  also need to identify any gaps in 
current investments or further areas of support required. 
13.6 
Whilst the JV is anticipated to being the principal vehicle for investment by the companies to 
under 
accelerate the delivery of emissions reducing mitigation to New Zealand farmers, the Parties 
retain the ability to progress similar existing and future initiatives and activities outside of JV 
from time to time. 
14.  Relationship with an enhanced NZAGRC as part of the 
‘Centre for Climate Action on Agricultural Emissions’ 
14.1 
The JV and NZAGRC wil  work together under a shared strategic framework taking into 
Released account the priorities in the R&D Plan, and wil contribute to the development of a system-
level strategy which wil  further help to support their complementary roles. Overall 
responsibility for development of the system-level strategy is likely to vest with the ‘Centre 
scaffold’ function of the Centre.  
14.2 
A contractual arrangement with the NZAGRC is proposed to provide the JV with access to 
critical capability and infrastructure. 
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14.3 
Beyond a purely contractual arrangement, there wil  be a close working relationship between 
the JV and the NZAGRC to ensure alignment in an overarching pipeline, including industry-
good fundamental biological research, industry-good development / validation, through to 
commercial programmes and projects.  This wil  be supported by a memorandum of 
understanding. 
14.4 
A close working relationship may also involve common membership at a governance level. 
14.5 
The Centre, and its component parts wil  have due consideration to Te Tiriti o Waitangi 
obligations including consideration of the principles of rangatiratanga, partnership, active 
protection, equity, options and mutual benefit. 
1982
15.  Intel ectual property 
Act 
15.1  The JV wil  develop, and the shareholders shall unanimously agree upon, a long-term 
intel ectual property strategy for its R&D programme and specific projects (IP Strategy). 
15.2  The IP Strategy wil  include establishing a framework for the exploitation/use of new 
Intel ectual Property to be generated under different scenarios and contracted agreements (IP 
Framework). 
15.3  Intel ectual Property arrangements wil  be agreed for programmes and projects on a case-by-
case basis but guided by the IP Framework. 
15.4  In principle: 
Information 
(a) 
the JV wil  own any Intellectual Property it produces in its own right.  It wil  not be the 
property of any shareholder; 
(b) 
JV Intel ectual Property wil  be managed such that it is prioritised firstly for the direct 
benefit of New Zealand farmers, secondly managed for the benefit of New Zealand 
more broadly, and thirdly managed for the benefit of the JV itself; 
Official 
(c) 
Subject to clause 15.4(b), to the extent permitted by law, the JV wil  also endeavour to 
ensure that al  commercial returns the JV is entitled to receive from the 
commercialisation of JV Intellectual Property, Intel ectual Property exploited by the JV, 
or otherwise;  the 
(d) 
wil  be reinvested in the JV; or  
(e) 
subject to the agreement of the shareholders of the JV, wil  be returned to the 
shareholders of the JV (reflecting funding contributed on a pro-rata, case-by-case 
basis); 
under 
(f) 
the JV wil  secure rights of access and use of Intellectual Property to support future 
business needs and commercial opportunities where the Intellectual Property has 
been developed in conjunction with third parties or with third party funding; 
(g) 
Pre-existing Intel ectual Property that is contributed by a Party to the JV (including 
through a license arrangement) shal  be valued prior to contribution by a commercial 
negotiation between the JV and the contributing Party. This Intellectual Property 
contribution could be recognised as an in-kind capital contribution to the JV; and 
(h) 
Intel ectual Property that is not intended to be commercialised through the JV should 
Released  be made available for wider use in line with clause 15.4(b). 
15.5  For the avoidance of doubt, the JV wil  not own any IP developed outside of performance of 
the Programme e.g. developed in the course of any existing or future research and 
development programmes undertaken by a Shareholder from time to time which wil  remain 
the property of the shareholder.  Any IP developed from other existing or future research and 
8 
 

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development programmes wil  not be the property of the JV unless the shareholder explicitly 
provides for this in writing.  
15.6  The sale or licencing of any Intel ectual Property or technology developed by or for the JV to 
an offshore party wil  require approval by special resolution of shareholders if over a certain 
dollar threshold, as the development of that Intellectual Property or technology has been 
funded by JV share capital, including contributions from the Crown.   
15.7  In this clause 15: 
(a) 
Intel ectual Property means all intel ectual property rights existing anywhere in the 
world under statute, common law or equity including but not limited to patents, 
1982
designs, copyright, plant variety rights, trade marks, and any rights of a similar nature 
whether registered or unregistered (and including applications, and the right to apply, 
for any of the foregoing), trade secrets, and rights in confidential information, but 
Act 
excluding Mātauranga Māori; 
(b) 
Pre-existing Intel ectual Property means Intellectual Property which is owned by, or 
licensed to, a party at the date of this MOU or developed outside of the programme, 
whether or not it is used in, or contributed for use in connection with, the programme. 
16.  Confidentiality and Privacy 
16.1 
Once agreed, this MOU wil  be made publicly available, subject to any redactions of sensitive 
and/or confidential information agreed to by al  parties. 
Information 
16.2 
Unless otherwise agreed by all Parties, each Party (the Recipient) should keep any verbal 
or written confidential information in relation to the other Party or its business or affairs 
provided by or on behalf of the other Party in respect to implementation of this MOU 
(Confidential Information) strictly confidential, and must not use that Confidential 
Information for any purpose other than for the purpose of performing its obligations under 
this MOU. 
Official 
16.3 
Clause 16.2 does not preclude a Party disclosing Confidential Information to the extent that 
the Confidential Information: 
(a)  enters the public domain without breach by the Recipient of its confidentiality 
the 
obligations under this MOU or at law; 
(b)  was lawfully known to the Recipient prior to the date it was received;  
(c) 
as otherwise required to be disclosed by law including the Recipient’s obligations 
under 
under the Official Information Act 1982, the Privacy Act 2020, any other legislation or 
regulations relevant to its operations and stock exchange rules and nothing in this 
agreement applies to any disclosure required under any such legislation, regulations 
or rules; 
(d)  where the information is independently acquired or developed by the Recipient without 
the use or benefit of any of the Confidential Information; or 
(e)  is disclosed in accordance with clause 16.4. 
Released 
16.4 
The Recipient may disclose the Confidential Information to its directors, contractors, 
employees and professional advisors who need to know the same for the sole purpose of 
enabling the Recipient to evaluate the Confidential Information and perform its obligations 
under this Agreement, provided that the Recipient must ensure that any person to whom the 
Recipient makes any disclosure in accordance with this clause 16.4 is made aware of, and 
complies with, the Recipient’s obligations under clause 16.2. 
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17.  Communications 
17.1 
The Parties wil  ensure they consult each other in advance before making any public 
statement directly related to any matter within the scope of this MOU. 
17.2 
Wherever appropriate and possible, al  Parties wil  coordinate publicity and media activity 
related to this MOU. 
18.  Status of Memorandum 
1982
18.1 
Memorandum general y not binding 
The Parties agree that this MOU is a genuine reflection of the matters that have been agreed 
Act 
between them relating to the formation of potential integration arrangements.  Subject to 
clause 18.2, the Parties do not intend for any provisions of this MOU to be legal y binding or 
to create any legal liability or claim by a Party against the other Party.  
18.2 
Certain provisions of Memorandum are binding 
Clause 16 (Confidentiality and Privacy) is binding on the Parties and wil  survive termination 
or expiry of this MOU. 
18.3 
Subsequent agreements 
Information 
The Parties acknowledge that entry into any contract, arrangement or understanding 
between the Parties with respect to any proposal relating to the JV wil  be conditional and 
subject to legal review, including for compliance with competition law, as set out in 
clause19.2. 
For completeness, the provisions of the MOU are subject to the agreement and execution of 
any subsequent agreements negotiated by the Parties for the purposes of the JV. Any 
Official 
subsequent agreement (or agreements) wil  supersede the provisions of this MOU. 
19.  Commerce Act considerations 
the 
19.1 
Parties to be aware of competition law risks 
The Parties acknowledge that some of the Parties are competitors. Accordingly, any 
meetings or correspondence between such Parties for the purposes of the JV could give rise 
under 
to competition concerns if any form of anticompetitive arrangement or understanding is 
reached, or if competitively sensitive information is shared. 
19.2 
No anticompetitive arrangements 
The Parties confirm that they wil  not come to any form of arrangement or understanding 
regarding their future conduct or intentions in relation to the market in which they currently 
compete, or may in the future compete. This includes arrangements or understandings in 
relation to pricing, output levels or third parties to or from whom they wil  supply or procure 
products, prior to receiving written legal advice on the competition law implications of such 
Released arrangements. 
19.3 
Restriction on sharing competitively sensitive information 
Competitively sensitive information is information that is not publicly known and includes (but 
is not limited to): 
10 
 

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(a)  product pricing information (including product-level pricing or future pricing strategies); 
(b)  contract negotiations or tenders; 
(c) 
commercial strategies;  
(d)  detailed information on output levels, supply arrangements or input prices;  
(e)  target customers, terms, etc.; or 
(f) 
more generally, any information which might cause the Parties to compete differently 
1982
as a result of receiving that information, 
(together, Competitively Sensitive Information). 
Act 
The Parties agree and acknowledge that Competitively Sensitive Information should not be 
discussed or provided to the other Parties who are, or may be, in competition.  If sharing 
information that is potential y Competitively Sensitive Information is necessary for the 
purposes of the JV, then the Parties will: 
(g)  redact, summarise, aggregate or anonymise the information to the extent that it no 
longer contains Competitively Sensitive Information; or  
(h)  if desensitising Competitively Sensitive Information in accordance with clause 19.3(g) 
is not possible, seek legal advice and put in place any necessary protections to avoid 
Information 
breaching competition law before providing the Competitively Sensitive Information to 
the other Parties.  
20.  General 
20.1 
Amendments 
Official 
Any amendment to this MOU must be in writing and signed by all Parties.  
20.2 
Relationship of Parties 
the 
Except as expressly provided in this MOU, nothing in this MOU is intended to constitute a 
relationship of employment, trust, agency, joint venture, partnership or any other fiduciary 
relationship between the Parties.  No Party has authority to bind or incur debts on behalf of 
the other Parties. 
under 
20.3 
Assignment 
No Party may assign or transfer, or purport to assign or transfer, al  or any part of their 
respective rights or interests under this MOU. 
20.4 
Governing law 
This MOU shall be governed by, and construed in accordance with, the laws of New Zealand 
and the Parties submit to the non-exclusive jurisdiction of the courts of New Zealand. 
Released 
20.5 
Termination  
This MOU shall terminate on the date on which subsequent legal documentation is entered.  
20.6 
Counterparts 
11 
 

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This MOU may be executed in any number of counterparts (including by scanned pdf copy) 
all of which, when taken together, wil  be treated as constituting one instrument. The date on 
which the last counterpart is executed wil  be the date of this MOU. 
1982
Act 
Information 
Official 
the 
under 
Released 
12 
 

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Execution 
Executed as a Memorandum of Understanding. 
 
SIGNED by His Majesty the King 
 
 
in right of New Zealand acting by 
and through the Director-General, 
1982
the Ministry for Primary Industries) 
by 
Act 
Director-General 
 
 
Print Name 
 
 
 
ANZCO Foods Limited by 
 
 
Information 
Chief Executive  
 
 
Print Name 
 
 
 
Official 
Fonterra Co-operative Group 
 
 
Limited by 
the 
Chief Executive 
 
 
Print Name 
 
 
under 
 
Ngāi Tahu Holdings Corporation   
 
Limited by 
Chief Executive 
 
 
Released 
Print Name 
 
 
 
13 
 

---

 
Ravensdown Limited by 
 
 
Chief Executive 
 
 
Print Name 
 
 
 
1982
Silver Fern Farms Limited by 
 
 
Act 
Chief Executive 
 
 
Print Name 
 
 
 
Synlait Milk Limited by 
 
 
Information 
Chief Executive 
 
 
Print Name 
 
 
 
Official 
 
 
the 
under 
Released 
14 
 

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Document Outline

• 1. Definitions
  • 1.1 Unless the context otherwise requires, the following words shall have the following meaning:
• 2. Purpose of Memorandum
• 3. Entity Form
• 4. Purpose of the public-private joint venture
  • 4.1 The purpose of the JV is to undertake targeted investments and actions to accelerate the development, commercialisation and/or deployment of effective and affordable solutions that will be used by New Zealand farmers and others to significantly re...
• 5. Investment objectives
  • 5.1 The shared investment objectives for the purpose of the JV of the Parties, include:
    • (a) accelerating the development and adoption of pastoral farming solutions for reducing methane and nitrous oxide emissions;
    • (b) coordinating and aligning capability across the public and private sector, including partnering with offshore parties to maximise the ability to accelerate the development, commercialisation and/or uptake/adoption of effective and affordable solut...
    • (c) increasing commitment between industry and government, and increasing the amount of investment;
    • (d) investing for returns not only in the traditional financial sense, but in a way that can be measured through the six capitals of value creation: natural capital, social capital, financial capital, manufactured capital, intellectual capital, and hu...
    • (e) support the New Zealand primary sectors’ competitiveness and reputation for sustainable production in a world where environmental credentials are increasingly a driver of commercial success.
• 6. Functions and powers
  • 6.1 The JV will need to be highly flexible and adaptive to achieve its purpose.
  • 6.2 While a prescribed set of functions is not intended, the JV’s functions are expected to include:
    • (a) Research & development - Drive a targeted research and development programme - concentrating effort and investment on a portfolio of promising solutions or mitigations.  The JV will have the flexibility to contract others to do R&D (particularly i...
    • (b) Commercialisation - Support the pathway to uptake / commercialisation of solutions, with the flexibility to undertake commercialisation activities itself and/or licence others to do so.
    • (c) Funding & partnerships – Develop partnerships and raise funds from the private and public sectors to finance the development of potential solutions, enabling the use of intellectual property within agreed frameworks – see the section on ‘Intellect...
• 7. Duration
  • 7.1 The JV will have a long-term commitment to producing solutions for reducing biogenic methane and nitrous oxide emissions. The investment in the JV will require a long-term commitment, for at least an initial 10-year period. Noting that there will ...
  • 7.2 Alongside other accountability mechanisms, regular reviews (3 years and 8 years) will be undertaken to gauge progress and to confirm, or not, the need for the JV to continue as well as assessing whether the Crown still needs to maintain a 50% shar...
• 8. Protection of Partner Interests
  • 8.1 Under the Companies Act, a number of material decisions are already reserved for special resolution of shareholders including approval of a major transaction, putting the company into liquidation, altering, or revoking the constitution, and approv...
  • 8.2 It is anticipated that there may also be a small of number of additional areas of interest—Crown, private sector, or both—that may also require specific provisions (reservations) for shareholding decision. These might include, inter alia,
    • (a) facilitating Crown accountability and oversight obligations;
    • (b) critical international partner investments;
    • (c) thresholds for investment decisions; and
    • (d) protection of minority shareholder interests.
  • 8.3 The Parties will work cooperatively to identify these interests and agree on the appropriate mechanisms for addressing these in formal company documentation and processes.
• 9. Funding
  • 9.1 The Parties agree funding will be in proportion to shareholding in the JV.
  • 9.2 Initial set up costs and funding for the first year are expected to be in the range of $1.8m for the operations of the JV and $3.6m per annum thereafter.
  • 9.3 Funding of projects will depend on the Strategy and investment decisions made by the Board, but a four-year commitment to funding will be agreed (until the first review).
  • 9.4 The Financial Year for investment will be 1 July to 30 June.
  • 9.5 The companies agree to scale up annual investment (including operating and programme costs) in the JV from 22/23 to reach the following indicative individual annual commitments by no later than the 24/25 Financial Year (noting the MOU is non-bindi...
  • 9.6 The Crown will match dollar for dollar the annual sum of company investment up to a total of $50 million per year.
  • 9.7 Notwithstanding clause 9.3 of this MOU, the funding commitments of the Parties will be subject to specific drawdown requirements agreed by the Parties in the Shareholder’s Agreement.
• 10. Shares
  • 10.1 The Crown will have 50% of the shares and the private sector participants will have the other 50% of the shares.
  • 10.2 A share in the Company will confer on the holder:
    • (a) the right to one vote on any resolution;
    • (b) the right to a share in any dividends authorised by the Board in proportion to shareholding; and
    • (c) the right to an equal share in the distribution of the surplus assets of the Company.
  • 10.3 Shares may be issued on a partly paid basis and calls made as funding is required, with the extent of lock-in to be agreed.
  • 10.4 Different classes of shares may be issued to:
    • (a) confer special, limited, or conditional voting rights; and
    • (b) limit or restrict transferability.
• 11. Governance
  • 11.1 There will be a minimum of six directors (Directors) and a maximum of eight, and an independent chair (Independent Chair) comprising the board of the Company (Board).
  • 11.2 The Directors of the JV will all be appointed based on their experience, skills and expertise judged against an agreed set of objective criteria.
  • 11.3 Rights to appoint Directors (other than the Independent Chair) will reflect shareholding, with the Crown and the Companies (as a collective representing 50% private sector shareholding) each appointing the same number of directors. It will also b...
  • 11.4 The Independent Chair appointment process will involve all shareholders working collaboratively to agree a candidate they all are comfortable with to put forward to the Minister. Ministerial approval is then expected on this basis.
  • 11.5 Board decision making will be by consensus where possible.
  • 11.6 There will be an establishment committee made up of the chief executives of the Parties to oversee the effective set-up and commencement of the JV. An Independent Chair of the establishment committee could be appointed to support transition to th...
  • 11.7 The Board will have all the powers normally reserved to a board of a commercial company. Key decisions for the Board could include:
    • (a) approval of the annual business plan;
    • (b) approval of the strategic plan;
    • (c) any material changes to the business plan or portfolio of work, budget and cashflow forecast;
    • (d) entering into a contract or arrangement with shareholders (this could require both Board approval and a special resolution of shareholders); and
    • (e) the financial policies of the Company.
• 12. Management
  • 12.1 The business and affairs of the Company will be managed under the direction or supervision of the Board. The Board will be accountable to shareholders for performance of the JV.
  • 12.2 The Board will appoint a chief executive officer (CEO), who is accountable for day-to-day management of operations.
  • 12.3 The CEO will appoint the executive team.
  • 12.4 The JV will employ staff with relevant commercial, science, legal, intellectual property expertise and experience, and use appropriate external advisory support as required, to ensure that it can perform its functions.
• 13. Portfolio of investments
  • 13.1 The JV is intended to undertake a portfolio of investments that will help to accelerate delivery of biological emissions tools to all New Zealand farmers.  This could include investments in R&D, infrastructure, and/or capability.
  • 13.2 The portfolio of investments approach will enable the JV to make decisions that balance risk against opportunity, recognise and respond to Māori agribusiness needs and opportunities, and address specific interest and sector needs (e.g., red meat,...
  • 13.3 Initial (and in some cases substantial) research has already been undertaken on a range of potential solutions (such as feed additives, genetics, and vaccines).
  • 13.4 The JV will need to work in partnership with the broader ecosystem both locally and globally to accelerate the creation and deployment of solutions, while actively minimising unnecessary duplication.
  • 13.5 To rapidly accelerate the development of such solutions, the JV will need to use a range of commercial operating models, building on what is already in place (including considering investment in existing projects and programmes and priorities ide...
  • 13.6 Whilst the JV is anticipated to being the principal vehicle for investment by the companies to accelerate the delivery of emissions reducing mitigation to New Zealand farmers, the Parties retain the ability to progress similar existing and future...
• 14. Relationship with an enhanced NZAGRC as part of the ‘Centre for Climate Action on Agricultural Emissions’
  • 14.1 The JV and NZAGRC will work together under a shared strategic framework taking into account the priorities in the R&D Plan, and will contribute to the development of a system-level strategy which will further help to support their complementary r...
  • 14.2 A contractual arrangement with the NZAGRC is proposed to provide the JV with access to critical capability and infrastructure.
  • 14.3 Beyond a purely contractual arrangement, there will be a close working relationship between the JV and the NZAGRC to ensure alignment in an overarching pipeline, including industry-good fundamental biological research, industry-good development /...
  • 14.4 A close working relationship may also involve common membership at a governance level.
  • 14.5 The Centre, and its component parts will have due consideration to Te Tiriti o Waitangi obligations including consideration of the principles of rangatiratanga, partnership, active protection, equity, options and mutual benefit.
• 15. Intellectual property
• 16. Confidentiality and Privacy
  • 16.1 Once agreed, this MOU will be made publicly available, subject to any redactions of sensitive and/or confidential information agreed to by all parties.
  • 16.2 Unless otherwise agreed by all Parties, each Party (the Recipient) should keep any verbal or written confidential information in relation to the other Party or its business or affairs provided by or on behalf of the other Party in respect to impl...
  • 16.3 Clause 16.2 does not preclude a Party disclosing Confidential Information to the extent that the Confidential Information:
    • (a) enters the public domain without breach by the Recipient of its confidentiality obligations under this MOU or at law;
    • (b) was lawfully known to the Recipient prior to the date it was received;
    • (c) as otherwise required to be disclosed by law including the Recipient’s obligations under the Official Information Act 1982, the Privacy Act 2020, any other legislation or regulations relevant to its operations and stock exchange rules and nothing ...
    • (d) where the information is independently acquired or developed by the Recipient without the use or benefit of any of the Confidential Information; or
    • (e) is disclosed in accordance with clause 16.4.
  • 16.4 The Recipient may disclose the Confidential Information to its directors, contractors, employees and professional advisors who need to know the same for the sole purpose of enabling the Recipient to evaluate the Confidential Information and perfo...
• 17. Communications
  • 17.1 The Parties will ensure they consult each other in advance before making any public statement directly related to any matter within the scope of this MOU.
  • 17.2 Wherever appropriate and possible, all Parties will coordinate publicity and media activity related to this MOU.
• 18. Status of Memorandum
  • 18.1 Memorandum generally not binding
  • 18.2 Certain provisions of Memorandum are binding
  • 18.3 Subsequent agreements
• 19. Commerce Act considerations
  • 19.1 Parties to be aware of competition law risks
  • 19.2 No anticompetitive arrangements
  • The Parties confirm that they will not come to any form of arrangement or understanding regarding their future conduct or intentions in relation to the market in which they currently compete, or may in the future compete. This includes arrangements or...
  • 19.3 Restriction on sharing competitively sensitive information
  • Competitively sensitive information is information that is not publicly known and includes (but is not limited to):
    • (a) product pricing information (including product-level pricing or future pricing strategies);
    • (b) contract negotiations or tenders;
    • (c) commercial strategies;
    • (d) detailed information on output levels, supply arrangements or input prices;
    • (e) target customers, terms, etc.; or
    • (f) more generally, any information which might cause the Parties to compete differently as a result of receiving that information,
  • (together, Competitively Sensitive Information).
  • The Parties agree and acknowledge that Competitively Sensitive Information should not be discussed or provided to the other Parties who are, or may be, in competition.  If sharing information that is potentially Competitively Sensitive Information is ...
    • (g) redact, summarise, aggregate or anonymise the information to the extent that it no longer contains Competitively Sensitive Information; or
    • (h) if desensitising Competitively Sensitive Information in accordance with clause 19.3(g) is not possible, seek legal advice and put in place any necessary protections to avoid breaching competition law before providing the Competitively Sensitive In...
• 20. General
  • 20.1 Amendments
  • 20.2 Relationship of Parties
  • 20.3 Assignment
  • 20.4 Governing law
  • 20.5 Termination
  • 20.6 Counterparts

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