Scientists at the Moredun Research Institute are leading a £6m international effort to develop an effective vaccine for on-farm worm control.
The institute, based in Scotland, is seeking to develop a commercial product to help control this major issue in the sheep industry in the UK and beyond.
Parasitism by gastrointestinal nematodes - parasitic worms which live in the gut - has a significant impact on livestock production worldwide.
Nematode infections of sheep negatively affect health and welfare outcomes for infected animals.
The cost of parasitism in the UK is estimated at approximately £4 per lamb through reduced weight gain and treatment costs.
In Australia, the total cost to the sheep and goat industry is estimated at more than AU$450 million each year.
Scientists say this inefficiency in production also impacts greenhouse gas emissions from agriculture, affecting the industry's ability to reach net zero targets.
Chemical treatments are the mainstay of parasite control programs for nematode infections, but researchers say that resistance to these treatments severely undermines control options on-farm in many areas of the world.
Dr Alasdair Nisbet, project lead from Moredun said: “We are delighted to be able to lead this team to develop our nematode vaccine technology further.
"This project is co-funded by each of the partners with matched funding from the Australian Federal Government through the Meat & Livestock Australia Donor Company to a total value of just over £6M (AU$ 11M) over 5 years.
"More than half of the budget will come to the Scottish partners, with the intention to develop a commercially exploitable vaccine against the main gastrointestinal nematodes of sheep globally."
The Moredun Research Institute is working with the University of Glasgow and University of New England, Australia to develop the vaccine.