AgResearch says it will limit the range of animals it wants to study in genetically modified research.
A preliminary report by the Environmental Risk Management Authority has rejected proposals to extend the institute's GM animal programmes.
AgResearch submitted four new wide-ranging applications to ERMA to import, develop and field test genetically modified organisms.
ERMA staff who have assessed the applications, have recommended that they should be declined.
They say the exceptionally large range of genetic modifications, techniques and traits proposed, means it is not possible to identify the full range of GM organisms involved.
ERMA staff say that means it's not possible to properly assess their effects, as required by the law or to assess the adequacy of the proposed containment system.
Applied biotechnologies general manager Dr Jimmy Suttie says Agresearch will continue to seek approval for its four applications.
He says AgResearch had wanted approval to develop biopharmaceutical products from 18 species of genetically modified animals including alpacas, donkeys and buffalos.
But, he says, it will now limit the range of species to mainly cattle, sheep and goats, which it already works with.
ERMA will hold a public hearing to consider the applications in June.
Lobby group not surprised
GE Free New Zealand, says it's not surprised at ERMA's preliminary report rejecting the AgResearch applications.
The anti-GE lobby group says the ERMA assessment is in line with a High Court finding by Justice Clifford, when GE Free challenged the applications last year.
That High Court decision was subsequently set aside by the Court of Appeal, but the lobby group says that was based on the timing of its challenge and not the substance of its case.
GE Free has now applied to have the case considered by the Supreme Court.
