The country’s biggest state science institute AgResearch says it’s forced to shut down most of New Zealand’s remaining wool research because neither farmers nor the Government will pay for the work.

The Institute will axe  36 scientific and technical jobs in wool biology and new textiles over the next three months.  It says the lack of funding has forced it to lay off excellent scientists.

Meat and Wool New Zealand chairman Mike Petersen says it's a tragic situation which could hamper the industry's recovery, once demand for wool picks up.

But Agriculture Minister David Carter says farmers made a clear choice not to support science initiatives last year, when they voted down the wool levy used to fund it. The Agriculture Minister didn’t discount the possibility of another vote on the wool levy.

AgResearch says it’s expanding staff numbers in some fields, including environmental science, greenhouse gas research, and food science.