Turning sheep skin into the future of wellness

How Christchurch's bioeconomy is turning waste into wellness

Christchurch's growing bioeconomy is creating value from unexpected places. Tertiary Extracts Ōtautahi Ltd (TEO) is transforming an overlooked by-product of sheep farming into innovative health products with global potential.

Every year, thousands of sheepskins are left unused after meat processing, with many ending up in landfill. Christchurch-based biotech company Tertiary Extracts Ōtautahi Ltd (TEO) saw an opportunity to do something different.

Rather than treating sheep skin as waste, the company developed a way to extract collagen – a protein widely used in health and wellness products – creating value from an underutilised resource.

How do you unlock the full potential of sheep skin?

While collagen extraction from animal skin is not new, sheep skin presents unique challenges because of its dense wool follicles.

TEO has developed a patent-pending process that treats the entire skin – wool and all – allowing proteins to be extracted from both the skin and the wool.

According to CEO Paul Sapsford, this approach unlocks what the company describes as "the world's most complete collagen".

The multifunctional protein is now being used in applications ranging from women's wellness and sports nutrition to sustainable biotechnology.

What happens when waste becomes wellness?

TEO's flagship ingredient, Ovitage, is an edible ovine collagen produced using the company's proprietary extraction process.

Rich in amino acids including cystine, tyrosine and glutamic acid, Ovitage is designed to support skin health, gut wellness, muscle tone, mood stability and cognitive function.

The ingredient forms the foundation of Everee Women, TEO's supplement range developed to support women navigating hormonal change.

"There's too much noise and not enough science in the wellness industry," says Co-CEO Kimberley Bray. "Everee cuts through that with simple, effective products grounded in years of research and development."

The company has invested more than $1 million into research covering bioavailability, efficacy and delivery methods. Support from AGMARDT, Callaghan Innovation and a $1.7 million friends-and-family investment helped establish a dedicated manufacturing facility in 2024.

Why is sustainability central to TEO's approach?

Sustainability sits at the centre of TEO's business model.

By turning skins destined for landfill into high-value functional proteins, the company reduces waste while creating new income opportunities for farmers.

Every batch is fully traceable to South Island farms, with production processes designed to minimise inputs and maximise regeneration.

"We're transforming how people think about food, supplements, and agriculture – restoring what we've taken from the planet," says Bray.

How is TEO helping grow Christchurch's bioeconomy?

TEO's impact extends well beyond environmental sustainability.

Since launching, the company has created more than 30 STEM jobs in Christchurch across manufacturing, biologics, microbiological research and development, quality systems and export logistics. It is also providing valuable industry experience for science graduates.

"We're proud to offer science graduates meaningful careers and expose them to the full scope of biotech's potential here in Christchurch," says Sapsford.

Although founded in Aotearoa New Zealand, TEO has global ambitions, with the United States already emerging as a key market.

The company's product pipeline is expanding into areas including GLP-1 support, functional lipids, sports recovery proteins and skin microbiome health, alongside growing interest in mood and cognitive wellness.

"We're building something that serves people, the planet, and the next generation of wellness," says Dr Kelly.

Key takeaways

• Christchurch's bioeconomy is creating value from waste. TEO has developed a way to transform sheepskins destined for landfill into high-value collagen products.
• Innovation is driving global opportunity. The company's research-backed products are gaining traction in areas including women's health, sports nutrition and functional wellness.
• Sustainability is built into the business model. Every batch is fully traceable, helping reduce waste while creating new value for farmers.
• The company is growing Christchurch's biotech capability. TEO has created more than 30 STEM jobs and is helping develop local scientific talent.
• Global ambitions are backed by local expertise. With expanding manufacturing capability and international market opportunities, TEO demonstrates the strength of Christchurch's bioeconomy sector.