- Hon Todd McClay
The Government is investing $246 million in a new fund over four years through Budget 2025 to supercharge growth and productivity in New Zealand's world-leading food and fibre sector, Agriculture and Forestry Minister Todd McClay announced today.
The new Primary Sector Growth Fund (PSGF) replaces the former Sustainable Food and Fibre Futures Fund and will focus on practical projects that reduce costs across the food and fibre sector value chain and deliver stronger returns on investment to the farm and forest gate.
The Fund will support projects that are business-led, market-driven, and commercially focused - with a clear aim of delivering strong economic outcomes and high growth potential.
"Every New Zealander depends on the success of the food and fibre sector - making up 80 per cent of our goods exports it powers our economy and puts food on our tables. Without agriculture and forestry, we would not be able to compete on the world stage," Mr McClay says.
"That's why the Government is moving at pace to increase farmgate returns, reduce compliance costs, implement smarter and better rules, and build resilience into rural communities."
The PSGF refocuses MPI's existing investment tools to back projects that drive higher-value outcomes across the food and fibre sector value chain - supporting the Government's goal of doubling exports by value in 10 years and returning value to the farmgate.
"We'll be working with the sector to find the best projects that help drive returns, including new high-value products, and providing practical tools for farmers and growers," Mr McClay says.
"Projects that increase productivity and support the quality demanded by global consumers will remain a priority. As a trading nation, we need to enable initiatives that lift the bottom line, improve efficiency, and give our products a competitive edge in global markets."
"This is about partnering with the sector to unlock real growth - helping producers, processors, and exporters to scale up, innovate, and deliver more value for the New Zealand economy," Mr McClay says.
