Detailed guidance is available
This page is a high-level description of the PSG requirements. More detailed information is available in our 'Technical guidance for applicants'.
Primary Sector Growth fund Technical guidance for applicants [PDF, 342 KB]
PSG applications must show economic benefits of project
All applications must demonstrate how a successful project will enable sustainable economic benefits for New Zealand’s food and fibre sectors and rural communities.
At a high level, this means that a project must increase profits in the food and fibre value chain in New Zealand or reduce production costs within that value chain.
Co-investment requirements
The PSG is a co-investment fund, so applicants need to contribute some of the costs. MPI will contribute up to 40% of the total cost of a project, with you funding the balance.
We prefer cash co-investment but, on a case-by-case basis, will consider in-kind co-investments. Your contribution cannot include other Crown funding, unless using commercial funds such as loans or equity investments. Funding from private (non-government) sources is acceptable.
By exception, where the rationale for government investment is sufficiently compelling, we may consider accepting applications for a higher government co-investment ratio, up to 50%.
What counts as in-kind co-investment?
In-kind costs may be considered as part of your co-investment contribution.
In-kind costs are those costs which only arise because of the project being undertaken and are additional to the usual activities of a business. This may include:
- the co-investor contributing people’s time
- using items (such as raw materials) that the co-investor already owns
- using companies’ existing assets, such as plant and equipment, property, and facilities.
In-kind contributions must be central to delivery of the project or programme.
Minimum PSG project size
The PSG has a minimum funding threshold of $250,000 in government investment, to be matched by at least $375,000 in industry investment. There is no specific cap on government investment per project. MPI will consider applications for multi-million-dollar, multi-year programmes.
By exception, where the rationale for government investment is sufficiently compelling, MPI may consider applications for smaller projects.
Consistency with international obligations and trade policies
PSG funding must be consistent with New Zealand’s international obligations and trade policies. It cannot be used to fund proposals which are entirely export-focused or to subsidise commercial activity. This includes funding for capital expenditure purchases that subsidise commercial operations. However, it can be used for pilot capital expenditure purchases like enabling new product development or making a prototype.
Refer to our guidance for more details
For detailed information about co-investment, eligible and ineligible in-kind contributions, and activities that we can and can’t fund, refer to our Technical guidance for applicants [PDF, 342 KB]
