$300m boost for dairy and red meat sectors

Tuesday 17th August 2010

The government is putting up $144.1 million into two initiatives worth $321 million over seven years to boost productivity and new products for the dairy and red meat sectors.

Under the Primary Growth Partnership - a joint scheme involving government and private investors - the government will inject $84.6 million into the seven-year, $170 million dairy programme, and $59.5 million into the seven-year $151 million red meat project.

The partnerships involve key agriculture sector players Fonterra, DairyNZ, PGG Wrightson, Silver Fern Farms, and the state-owned Landcorp Farming.

The PGP replaced the previous administration's Fast Forward Fund. The government has set aside $190 million for the first four years of the programme, and an annual $70 million extra from the 2013/14 financial year.

"All New Zealanders stand to benefit from the partnerships announced today because the dairy and red meat industries are pivotal to the successful performance of our economy," said Agriculture Minister David Carter in a statement.

The dairy programme, led by Fonterra Cooperative Group and DairyNZ, aims to create new products, boost on-farm productivity and reduce farmers' environmental footprints. It expects to drive significant additional benefits by 2020.

The red meat joint venture between Silver Fern Farms, PGG Wrightson and Landcorp Farming aims to lift the efficiency of meat production and grow the sector by 50% by 2025.

The programme expects to add $1.1 billion to New Zealand's economy over its seven-year life, to a total $8.8 billion economic benefit by 2025.

The approved ventures are the fourth and fifth business plans to get funds from the PGP, and makes up the bulk of the $164 million already allocated.

Businesswire.co.nz

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