Five other centres will continue that research, but after failing to secure sufficient funding from the Foundation for Research Science and Technology, AgResearch has disbanded its possum control group at Invermay, ending the science company's efforts to find new forms of possum control.
A scientist and two technicians will lose their jobs at AgResearch's Invermay campus.
AgResearch manager of applied biotechnology Jimmy Suttie describ- ed the closure as unfortunate.
It is consistent with the statement of core intent agreed by all Crown research institutions (CRI).
The policy states that Landcare Research will conduct all CRI work into vertebrate pest control, including possums.
"It is not in AgResearch's mandate ... to do this type of research," Dr Suttie said.
An Animal Health Board spokesman said Landcare Research at Lincoln University and three private companies were looking for new forms of possum control.
AgResearch's Invermay researchers have been seeking alternative toxins to the current 1080-laced cereal bait, as well as a way to interrupt reproduction.
The scientist heading that research, Bernie McLeod, will be made redundant on Christmas Eve, after working for 20 years at Invermay.
He would not speak publicly on the issue.
Dr Suttie said Dr McLeod's work would be published so other researchers could pick it up.
A new possum breeding and housing facility was built at Invermay in 2008, part of a $17 million redevelopment of the campus, and Dr Suttie said a search was under way to find other uses for it.
A Southland anti-1080 campaigner, Shirley Hudson, said any reduction in research to find an alternative to 1080 was regretted.
"To close down a research institute because it is costing money, is rather tragic because we need as many people [as possible] looking for alternatives to 1080," the member of the Hokonui Environmental Action Group said.
Dr McLeod's research also had application for prostate conditions in men, where an enlarged prostate, either benign or cancerous, was a common condition, particularly after after the age of 50.
The prostate gland in possums has similarities to that in men, and the University of Otago was following Dr McLeod's work closely.
During the breeding season the possum's prostate could increase to 33 times its usual size then shrink after the breeding season.
