Prime Minister Jacinda Ardern said despite other countries not being able to eradicate Mycoplasma bovis, factors such as location and timing mean New Zealand is in a different position to combat the cow disease.
"Our borders in particular make it possible, we do believe we are taking it on at a point that it is possible to eradicate, more than 99 per cent of farms do not have it, we want to protect them from having it."
The Government chose today the option of phased eradication to attempt to combat the cow disease Mycoplasma bovis, at a cost of $886 million over the next decade.
It is anticipated the phased eradication programme will mean 126,000 animals will be culled (Around 26,000 cows are currently in the process of being culled). Most of those animals will be killed over the first one to two years.
Under the plan thousands of cows will be culled.
The cost of eradication will be largely borne by the government, with Dairy NZ and Beef+Lamb New Zealand to pay 32 per cent.
Minister of Biosecurity Damien O'Connor said all indications pointed to it being possible to eradicate Mycoplasma bovis, "experts have said so, and we believe we have to give it a go".
He said of the cows to be culled over the next 10 years, "probably quite a large number" would be healthy cows, however, "this is a necessary, unfortunate part of not having yet, a test that clearly identifies the individual animals". It was pointed out during the press conference that the disease can be carried by cows for a time without showing symptoms.
National Party spokesperson for Agriculture Nathan Guy said the decision to eradicate brought "a significant level of certainty to the farmers around the country".
"This disease has caused enormous stress and anxiety for farming families. The financial and emotional toll on farmers has been significant and the Rural Support Trust has done an outstanding job supporting those in need," he said.
Ms Ardern said the decision was made "to protect our national herd and the longterm productivity of our economic decision".
"This was a tough decision and I empathise fully with those farmers going through the pain of losing their herds."
Ms Ardern said they had the option of phased eradication, long term management or doing nothing.
She said eradication will require significant resources from Government and the industry.
"To not act will cost even more."
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