The fertiliser co-operative Ballance Agri-Nutrients says it is making inroads with its seven-year research and innovation project which aims to transform traditional fertiliser use.
It is nearly a year into the development of products that improve the efficiency of nitrogen and phosphorus use and reduce nitrate run off on dairy farms.
The Government's primary growth partnership is funding a third of the $32 million project.
Ballance's research and development manager, Warwick Catto, says the creation of a Critical Source Model that pinpoints poor fertiliser loading has been a highlight in the past year.
Mr Catto says that is important as regional councils increase their pressure on farmers to reduce nutrient runoff into waterways.