In a New Zealand first, a Christchurch recycling company is set to recycle more than 800,000 fertiliser bags a year.

Usually, the bags end up being buried or incinerated on farms.

But in future EnviroNZ will take polypropylene fertiliser bags and turn them into plastic pellets.

Managing Director Gary Saunders said` the pellets can be re-manufactured in to plastic piping or twine.

"It's a good addition to our full service offering to our customers within New Zealand. These bags will be coming from all over New Zealand not just the South Island."

The Government has put more than $1 million into the project.