A five-way agreement between New Zealand and Chinese agriculture-related institutions will help develop China's sheep farming and pasture growth, New Zealand Primary Industries Minister Nathan Guy said Friday.

The memorandum of understanding (MOU) signed Friday involved New Zealand state-owned Landcorp Farming agency and Massey University and Anhui Agricultural University, Anhui Anxin Husbandry Development Ltd. and Anhui Provincial Government Decision-Making Cultural Exchange Center.

Landcorp would provide sheep farming expertise while Massey University would contribute technical consultancy services, said Guy, who is in China, in a statement from his office.

"China has a large flock of sheep raised in low numbers, with the average farm size just half a hectare. While leading this trade mission it has become clear there is a great opportunity for the New Zealand sheep industry in China," Guy said.

The MOU provided a platform for Landcorp and Massey University to expand the relationships they already had in China.

"This is another example of China's growth in agricultural production creating major opportunities for New Zealand businesses to use their skills and expertise," he said.

Earlier this year, Guy signed a Strategic Plan on Promoting Agriculture Cooperation agreement with China's Minister of Agriculture, encouraging greater cooperation and sharing of knowledge.