New Zealand plans to slaughter about 150,000 cows as it tries to eradicate a strain of disease-causing bacteria from the national herd.

Key points: New Zealand's cull will cost $NZ886 million and if successful, will see the elimination of Mycoplasma bovis in the country.

New Zealand's cull will cost $NZ886 million and if successful, will see the elimination of Mycoplasma bovis in the country. Bacteria was found for the first time in New Zealand last year, causes a number of conditions in cows.

Bacteria was found for the first time in New Zealand last year, causes a number of conditions in cows. PM Jacinda Ardern empathises with farmers "going through the pain of losing their herds"

Politicians and industry leaders announced the ambitious plan on Monday, saying it will cost $NZ886 million ($813 million) and, if successful, it will be the first time an infected country has eliminated Mycoplasma bovis.

Farming is vital to the economy in New Zealand, whose isolation has helped protect it from some diseases which affect herds elsewhere.

Last July, Mycoplasma bovis was found in the country for the first time.

Found in Europe and the US, the bacteria can cause cows to develop mastitis, pneumonia, arthritis and other diseases.

The disease is not considered a threat to food safety, but does cause production losses on farms.

The bacteria Mycoplasma bovis is not a threat to food safety but does harm productivity on farms. ( ABC News: Andrew Bell )

"Cabinet has today joined with industry and collectively decided to attempt the eradication of the cattle disease Mycoplasma bovis from New Zealand," Prime Minister Jacinda Ardern said.

"We've made this decision in partnership with our farming sector to protect our national herd and the long-term productivity of our economic base.

"This was a tough decision and I empathise fully with those farmers going through the pain of losing their herds.

"We essentially had three options in front of us today: phased eradication, long-term management or doing nothing.

"Our plan to eradicate Mycoplasma bovis over time will require significant resources from both government and the industry, but to not act would cost even more.

"Cabinet today agreed … on a phased eradication plan that all up could cost $NZ886 million."

AP/ABC