The food and fibre sector is expected to contribute $56.9 billion to our economy this year alone
Agriculture Minister Todd McClay has announced that the New Zealand Government will allocate $4.95 billion over the next four years to maintain core funding for the Ministry for Primary Industries (MPI).
“The food and fibre sector is expected to contribute $56.9 billion to our economy this year alone. That’s why we are focused on reducing regulatory burdens and expanding global market opportunities—from the UK and EU to the Gulf and India,” McClay stated.
As part of its grassroots investment strategy, the Government is introducing a new $246 million Primary Sector Growth Fund (PSGF), set to run over four years. This fund will replace the Sustainable Food and Fibre Futures Fund and concentrate on practical, business-led, and market-driven projects aimed at improving cost-efficiency across the value chain and boosting returns for farmers and foresters.
McClay emphasised that the fund would prioritise initiatives that enhance productivity and deliver the high-quality global consumers demand. “We’re committed to working with the sector to back projects that offer high-value products and deliver tangible tools to support farmers and growers,” he said.
Additional investments include $400,000 to support A&P (agricultural and pastoral) shows across the country and a new $2 million Rural Wellbeing Fund. Rural Communities Minister Mark Patterson noted that this wellbeing fund builds on the Government’s previous $1 million support for Rural Support Trusts. It will be administered by MPI, with funding decisions made by a governance group featuring industry representatives.
