Southern farmers and businesses need to contribute about $2 million by the end of April to enable the Southern Dairy Hub venture to proceed.
About 170 farmers and businesses have pledged $383,000 to the $26.5 million project. DairyNZ and AgResearch have pledged $10 million but the project is dependent on local support.
Southern Dairy Development Trust (SDDT) chairman Matthew Richards described the proposed hub as a ''huge deal''.
''We need to get it over the line and ultimately to the final stage, where it is working in partnership and for the benefit of southern dairy farmers and the southern community.''
The farm has not yet been purchased but the SDDT was actively looking for a suitable property, in the central Southland area.
It would be home to 800 900 cows, split into four herds to enable comparative research trials to be carried out at scale.
It would also include education and training facilities, commercial and research office buildings.
The impact of dairying on waterways was a concern and it was likely constraints would be placed on new dairy and wintering systems that could also affect existing dairy farms, Mr Richards said.
''We need a place that can address these issues head on. We need the hub to find the solutions and to help us develop long term sustainable farm systems.