Australia's CSIRO Livestock Industries and its partner, New Zealand’s principal pastoral food Research Institute, AgResearch, have predicted the global financial crisis could significantly reduce investment in biotechnology and agricultural science.
On the opening day of their joint three-day Horizons in Livestock Sciences Conference in Christchurch, NZ, AgResearch's general manager of applied technologies, Dr Jimmy Suttie, said there was likely to be a reduction in investment in the biotechnology market.
"The international financial crisis means there is a low appetite for risk and less likelihood of investment in areas such as animal biotechnology," he said.
"However, this investment is important for the future of the Trans-Tasman livestock sectors.
"Additionally, if farmers face a downturn it becomes an instant issue for AgResearch and CSIRO.
"As tougher economic times develop, farmers will want increasing real value from what's delivered by the sector levies they pay."
Dr Suttie warned that any decrease in producer levies as a result of the downturn would have serious repercussions for both organisations.
CSIRO Livestock Industries Chief, Dr Alan Bell, said the extent of the impact the financial crisis would have on national science budgets in Australia and New Zealand could not be predicted.
"The situation is gloomy and all bets regarding the future are off," he said.
"Both Australia and New Zealand are affected by export markets and how the international financial crisis affects other national economies.
"The next couple of years could be pretty tough."