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For business-led, market-driven primary sector innovation
The Primary Growth Partnership (PGP) is driving the future market success of the primary industries through long-term innovation programmes that are jointly funded by government and industry. A key goal is to encourage more private investment in research and development in New Zealand, which is low by OECD standards.
The PGP programmes are primarily business-led and market-driven innovation programmes that work across the primary industry value chain. The PGP is about boosting productivity and profitability, and delivering long-term economic growth and sustainability across the primary sectors, from producer to consumer.
MPI is committed to helping the primary industries to double the value of exports by 2025. This is the Ministry's contribution to the Government's Business Growth Agenda target. Achieving this will require significant changes in the way the primary industries operate – to increase both volume and value of exports.
The PGP is one of the most tangible examples of how MPI is partnering and enabling to help the primary industries reach their maximum potential. The partnership between government and industry ensures that there are commercial drivers for the programmes.
The overall funding provision was organised in Budget 2009, with provision of $30 million for 2009/10, $40 million for 2010/122, $50 million for 2011/12, and $70 million per annum from 2012/13 to be appropriated to Vote: Agriculture and Forestry. Government funding is released in stages on the receipt of invoices for work undertaken by contracted programmes in accordance with that programme's contract and programme plan. For the quarter ended 30 September 2013, total government funding paid to the 14 programmes underway at that date was $85.09 million.
The PGP has been successful in attracting high-quality investment proposals.
There are 17 announced PGP programmes (14 contracted and three pending) as at 27 November 2013. The total PGP funding commitment from government and industry in these programmes is $701 million. They are expected to generate economic benefits worth approximately $7 billion per year by 2025.
PGP investment by sector (November 2013)
PGP investments cover education and skills development, research and development, product development, commercialisation, commercial development and technology transfer. The benefit of a programme must be anchored in New Zealand, and must be additional to existing initiatives and work programmes - that is, beyond business as usual.
A six-person Investment Advisory Panel (IAP) chaired by Joanna Perry advises the Ministry for Primary Industries on PGP investment decisions, and plays an ongoing monitoring role for contracted programmes. Final decisions on proposals are made by the Director General of the Ministry.
PGP Round Nine closed on 19 September 2013. Fourteen proposals were received, requesting more than $110 million in Crown funds.
The IAP met in early November and made its decisions. One proposal was approved for Business Plan development, twelve were declined and the IAP requested further information on one proposal before making its decision. A decision is expected on this proposal before Christmas. Of the twelve declined proposals, some have been asked to either resubmit revised proposals or engage in further discussion with MPI.
Applicants were advised of the Panel’s decisions in mid November.
Good governance, monitoring and assurance are important to protect all the interests in the PGP programmes.
Read more on Primary Growth Partnership – Governance, monitoring and assurance
The success of the PGP is dependent on industry groups coming up with ideas and being willing to back them with co-funding. This is an opportunity for primary industries to secure their future through innovation that will create new opportunities or overcome current challenges.
The minimum amount the Ministry will invest in a PGP programme is $500,000 (excluding GST), and this must be matched (or exceeded) by the industry partner. The PGP programme is open to almost any entity, including firms, industry bodies, private research organisations, individuals, Crown Research Institutes and local government businesses. However, Crown or rate payer money cannot be used to match the Ministry's PGP funding.
There are six main steps in the PGP Application Process leading to the establishment of a co-investment programme. Once a funding round is closed the Ministry forwards the proposals to the Investment Advisory Panel. Proposals are then assessed by MPI and the IAP. This process takes approximately six weeks (steps 1-2).
The PGP Investment Advisory Panel plays a key role in this process, assessing applications against the PGP co-funding criteria, and advising the Ministry for Primary Industries on PGP investment decisions. Funding decisions are made by the Director-General of the Ministry.
It takes about nine months for a programme to get from the point where the Panel makes its decision on a proposal (step 2) to the contracting phase (step 6). This is when the Crown and co-investor/s work out their contractual obligations for the investment partnership. The contracting phase is preceded by the business plan phase (steps 3 and 4), and overseen by a Programme Steering Group from step 3 onwards. The application form, and other resources to help you with your application, are available in the Primary Growth Partnership Eligibility and How to Apply section.
If you have questions regarding the PGP, please send an email to email@example.com.