Two new PGP programmes approved   29 Jan 2015

Hon Nathan Guy
Minister for Primary Industries

29 January 2015

Two new PGP programmes approved

Primary Industries Minister Nathan Guy has welcomed approval for two exciting new programmes to join the Ministry for Primary Industries’ Primary Growth Partnership (PGP).

The first, ‘Passion2Profit’, aims to develop new markets for chilled venison and to help deer farmers to become more productive and profitable.

A total investment of $16 million has been secured for this project, with MPI contributing almost $7.4 million and the balance coming from Deer Industry New Zealand and its partners.

The other, ‘Targeting New Wealth with High Health’ looks to reach existing and emerging markets with a new class of premium lamb products with improved health qualities – including lower levels of saturated fat and higher levels of polyunsaturated fat and healthy omega-3 oils.

This is a seven year $25 million programme, with half the funding contributed by MPI.

The two programmes have had their business cases approved by MPI’s Director-General Martyn Dunne, which means contract negotiations can now begin so the programmes can formally start.

“These are both exciting new programmes that will allow our deer and lamb industries to leverage increasing consumer demand for premium food products,” says Mr Guy.

“Passion2Profit will open up a world of possibilities, and enable New Zealand venison producers to supply premium chilled venison to domestic and overseas markets, in particular Europe.

“Traditionally, New Zealand has relied on European market demand for mostly frozen venison products. This demand has been seasonal and places pressure on our venison industry.”

Passion2Profit aims to deliver economic benefits of $56 million per year in additional industry revenue by the end of the programme.

“‘Targeting New Wealth with High Health’ is also set to deliver significant economic benefits, raising the value and profitability of New Zealand’s lamb products.

“A collaboration with Alliance Group and Headwaters New Zealand, the programme aims to develop new production, processing and marketing techniques that could be extended to other industries, allowing them to leverage access to new markets.

“It’s pleasing to see that the PGP is helping extend scientific research and innovation through to commercial-scale production.

“It’s also great to see the red meat sector investing in its future through increased collaboration within the sector and improved productivity and profitability. This sector is vital to New Zealand’s economy as a whole.

“These programmes are prime examples of what the PGP is designed to achieve—industry and Government working together to boost value, productivity and innovation across the primary industries,” Mr Guy says.

“This major investment into R&D will be a big step towards achieving the Government’s goal of doubling the value of primary sector exports by 2025,” says Mr Guy.

About the Primary Growth Partnership
• The PGP aims to boost the value, productivity and profitability of our primary sector through investment between government and industry. It provides an essential springboard to enable New Zealand to stay at the forefront of primary sector innovation.

• When the two recently approved programmes are under contract, there will be 18 PGP programmes underway, with two recently completed. A total of approximately $720m is being co-invested by industry and Government over the life of programmes.

• A report by NZIER last year estimated PGP will add $6.4 billion per annum to New Zealand’s economy by 2025.

• The report further concludes that it has the potential to achieve an additional $4.7 billion per annum by 2025 if all the R&D is successful, the aspirational stretch of PGP programmes is achieved, and the innovations are widely uptaken. This would add up to $11.1 billion per annum to New Zealand’s economy by 2025.

• PGP programmes are generally long-run programmes of five to seven years’ duration and are subject to oversight and monitoring by an independent panel (the Investment Advisory Panel) and MPI.

• Monitoring requirements include programme steering groups, quarterly progress reporting, annual plans, financial audits, and progress reviews, along with evaluation of the overall programme. Government funding is only released to programmes on receipt of invoices for work completed in accordance with programme plans.

• More information is available at: www.mpi.govt.nz/funding-and-programmes/primary-growth-partnership

ENDS

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