The Government is putting $15 million into genetics research for sheep and beef cattle.
The funding over five years will support a new partnership called Beef + Lamb New Zealand Genetics.
That brings together the existing sheep genetics and breeding programmes - Sheep Improvement Ltd, the Beef + Lamb New Zealand Central Progeny Test and Ovita.
It will also include further expansion into beef genetics.
Science Minister Steven Joyce said genetic improvement in the sheep industry has contributed a lot to farm profitability. For every dollar captured on farm, he said another 50 cents is captured off-farm.
Beef + Lamb New Zealand Genetics predicts that in 10 years farmers could be getting almost $6 a lamb more from genetic improvements.