The New Zealand government has ordered a mass cull of cattle to try eradicate the bovine disease Mycoplasma bovis.
Prime Minister Jacinda Ardern has reached an agreement with the farming sector to undertake a phased eradication which will come at an estimated cost of $NZ886 million ($A812 million).
It is anticipated 126,000 cattle will be culled over the next two years.
Culling will involve all cattle on infected properties along with cattle on most restricted properties.
The money will be spent over 10 years, with Ms Ardern confident there is a "real chance" of full eradication to protect the more than 20,000 dairy and beef farms across the country.
"Today's decision to eradicate is driven by the government's desire to protect the national herd from the disease and to protect the base of our economy - the farming sector," Ms Ardern said.
"This is a tough call - no one ever wants to see mass culls. But the alternative is the spread of the disease across our national herd."
The government will meet 68 per cent of the cost while Dairy NZ and Beef and Lamb New Zealand will meet 32 per cent.
New Zealand's key dairy sector has been struggling with the spread of M. bovis since July.
The cattle disease has serious animal welfare implications - including causing abortions and pneumonia - but poses no risk to humans, food or milk safety.
New Zealand was believed to be only one of two dairying countries - along with Norway - to not have encountered the condition.
The government had earlier ordered 23,000 animals be killed to stop the spread. About half of them had been slaughtered.
Last week the number of infected farms was 37.
However, high-risk animal movements have been traced to about 3000 farms.
About 300 of them are in biosecurity lockdown and nearly 900 are under surveillance.
If New Zealand can eradicate the disease, it will be the first country to do so.
