New $246M Primary Sector Growth Fund Launched to Boost Food & Fibre Economy

 In a bold move to strengthen New Zealand’s economy and invigorate its globally respected food and fibre sector, Agriculture and Forestry Minister Todd McClay today announced the launch of the Primary Sector Growth Fund (PSGF)—a $246 million investment over four years through Budget 2025.

This new initiative aims to bolster productivity, support innovation, and improve profitability from paddock to port. The PSGF is a strategic upgrade replacing the Sustainable Food and Fibre Futures Fund, with a sharper focus on commercially-driven and market-led projects that deliver tangible outcomes for producers and processors alike.

A Sector Central to New Zealand’s Economic Success

Agriculture and forestry are cornerstones of the New Zealand economy, accounting for 80% of the country’s goods exports. Minister McClay emphasized that the food and fibre sector is not only vital to the economy but also to New Zealand’s identity and daily life.

“Every New Zealander depends on the success of the food and fibre sector. It powers our economy, supports rural communities, and puts food on our tables,” McClay stated. “Without agriculture and forestry, we simply could not compete on the global stage.”

Doubling Export Value in a Decade

The PSGF is aligned with the Government’s broader objective to double the value of New Zealand’s exports within 10 years. It seeks to do so by fostering business-led projects with the potential to elevate productivity, reduce operational costs, and strengthen farmgate returns.

Projects that are market-responsive, business-driven, and commercially viable will receive priority, with emphasis on those delivering clear economic value and supporting high growth trajectories.

“This fund is about partnering with the sector to unlock real growth,” said McClay. “We are backing ideas that help producers, processors, and exporters scale up, innovate, and deliver more value for the New Zealand economy.”

Support for Practical and Innovative Solutions

The PSGF will concentrate on practical solutions that make a real difference on the ground. This includes:

• Developing new high-value products to meet global market demands

• Implementing tools and technologies that reduce costs and improve efficiency

• Supporting smarter, simplified compliance systems

• Encouraging resilience-building initiatives for rural communities

• Promoting sustainable practices that enhance long-term sector viability

According to McClay, the Fund’s design ensures that investments are closely aligned with export opportunities, consumer preferences, and the pressing need for environmental and financial sustainability.

Industry Collaboration at the Core

The PSGF promises close collaboration with industry stakeholders, from individual farmers and growers to major processors and export bodies. This sector-wide approach is intended to build a stronger innovation ecosystem, ensuring that government support is strategically deployed where it can deliver the greatest returns.

“We’ll work directly with businesses and producers to identify the most promising projects,” McClay noted. “From high-value exports to innovative farming techniques, we’ll provide the practical support needed to bring these ideas to life.”

A Future-Forward Strategy for Rural NZ

The Fund’s launch also represents a broader government commitment to rural New Zealand—ensuring that communities are not left behind in the national growth story. By embedding resilience into the rural economy and reducing regulatory burdens, the PSGF seeks to empower local economies and foster long-term prosperity.

As Minister McClay concluded, “This is not just an investment in projects—it’s an investment in the future of our rural communities, our exporters, and New Zealand’s global reputation as a trusted source of top-quality food and fibre.”

With the Primary Sector Growth Fund now in motion, the Government invites stakeholders across the country to bring forward bold, viable ideas that will help write the next chapter in New Zealand’s agricultural success story.