New Zealand-based Ruminant BioTech, a startup behind what it claims is the most efficient livestock methane reduction solution for pasture-based cattle—has closed a $17 million NZD ($9.5 million) Series A round as it gears up for launch in 2026.
- The round was co-led by Rosrain Investments and Cultivate Ventures, and supported by Marex and AgriZeroNZ.
- The funding will help the firm commercialize its bolus, which slowly releases a methane inhibitor in the stomach of ruminants over an extended period, enabling sustained methane mitigation in pasture-raised animals.
Animal trials suggest its first-generation product can deliver a 75% reduction in methane for over three months (100 days) with a single dose, a number the team is confident it can extend to six months over time.
Initial regulatory approval is expected in New Zealand in early 2026, with additional approvals sought in Canada, Brazil and the EU, says the firm, which has commissioned a pilot plant with the capacity to produce up to one million doses annually for the Australian and New Zealand markets.
By 2035, Ruminant Biotech aims to have 100 million cows treated with its tech globally.
“This investment is an exciting opportunity for Marex to gain further access to high-quality carbon credits which expand our range of products available to clients.” Nigel Brunel, MD New Zealand, Marex
Why it matters
A potent greenhouse gas, methane is generated both from manure and burping ruminants, contributing a significant percentage of global emissions.
Multiple strategies are being explored to tackle the problem from feed additives such as red seaweed and 3-NOP (Bovaer) and vaccines to cattle breeding programs and even editing the genes of the microbes in the rumen.
But there’s no one-size-fits-all solution, says Ruminant BioTech CEO Tom Breen, who notes that feed additive based approaches are well-suited for intensive farming systems while a longer-lasting solution is needed for pasture-raised cattle.
“It’s a tough time to raise climate finance,” he tells AgFunderNews. “But we have a unique and compelling proposition for reducing emissions in pasture-based livestock systems with a product that’s got high mitigation potential and a long duration that’s easy to adopt it at the farm.”
Who will foot the bill?
Asked who will ultimately foot the bill for livestock methane reduction solutions if there is not a clear payback for farmers in the form of increased productivity, he says: “My basic belief is that if we want to see technologies that can have a meaningful impact on reducing methane, then the carbon markets have to play a role.
“Farmers need to have a direct incentive for the actions they take behind the farm gate to reduce emissions. And we think that will happen through insetting programs within the value chain itself and offsetting programs on voluntary markets. We’re not making any claims around productivity right now.”
Slow-release tech
A bolus is a solid, pill-like capsule that delivers its payload (anything from minerals to probiotics) directly into the cow’s rumen. It is usually administered orally using a long-handled bolus gun, which allows a handler to place the capsule at the back of the cow’s throat so it can be safely swallowed.
According to Breen: “Our founders (three veterinarians) could see the promise of Asparagopsis (red seaweed) for methane reduction, but saw straight away that it wasn’t going to be a solution that would work well in the New Zealand dairy system, where animals are pasture-raised.
“So their idea was to take the active ingredient from Asparagopsis (bromoform), combine it with their knowledge of bolus technology, and come up with a solution offering long duration and high methane mitigation potential and a great cost structure.”
While bromoform is readily available (Ruminant BioTech sources a synthetic version from a third party) its IP is around how to deliver a precise daily dose for a long period using a biodegradable bolus, says Breen. “That’s the real challenge and our secret sauce.”
He adds: “From a chemistry and materials science perspective, we’re incredibly bullish on what we can achieve, and we believe that [a six-month bolus] is very possible.”
Safety checks
Asked about safety concerns should the bolus deliver too much bromoform at once, he says: “We’re up to over 30 animal studies over the over the last four years, so we’re very comfortable in the safety of the product based on its design. Without going into too much detail, there’s a couple of mechanisms that create that safety layer between the bolus itself and the formulation on the inside.
“But one of the great things about coming to market first in New Zealand is we’ve got one of the world’s most respected and trusted regulators that’s putting us through our paces. And when we get our first registration approval, hopefully early next year, the market will have the confidence that we’ve got a product that’s safe for use.”
The business model
Ruminant BioTech is “currently working through a distribution agreement with a large global partner that will bring a lot of the access to customers and plug into some of those early offtake programs already existing with other competitors,” says Breen.
“We think the cost structure is superior to a number of other feed additive models today and costs will only come down as we scale, not just the volumes, but also the technology innovation that we’re looking at bringing through over the next couple of years we think drives down the cost pretty significantly as well.”
Asked whether it is risky to build a business that relies on carbon markets or commitments from companies to reduce emissions at a time when many are pulling back from sustainability pledges, he said: “In the short term, you’ll see policy shifts, but the reason why we’re all here in the first place hasn’t changed.
“Climate change is happening and cutting methane is an opportunity for us to really have high impact whereas carbon dioxide is more of a long-term game.”
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