SFFF's Successor: Unpacking the New Primary Sector Growth (PSG) Fund
The 2025 budget saw a shakeup for primary sector funding with the Sustainable Food & Fibre Futures (SFFF) fund being replaced by the Primary Sector Growth (PSG) fund. Backed by a $246 million investment over four years, the PSG fund is designed by MPI to drive growth and boost productivity across Aotearoa’s food and fibre sector. This funding is a continuation and repurposing of investment previously allocated to SFFF.
To break down what this announcement means for primary sector businesses eyeing government grants, we spoke to our Senior Grant Funding Consultant, Marie Dawkins. In the below Q&A, Marie unpacks what’s changed, what hasn’t, and how Swell can help businesses navigate the new funding landscape with confidence.
Q: How does the Primary Sector Growth Fund (PSG) fund differ from SFFF?
“The core structure of the PSG fund isn’t dramatically different from SFFF, but the emphasis has shifted — it’s less about innovation and more about driving tangible growth. Of course, innovation and growth often go hand-in-hand, but this fund is taking a more direct approach: the government wants to see clear, measurable outcomes like increased profitability or reduced costs across the food and fibre value chain. That’s very much in line with its broader economic priorities, which are heavily centred on productivity, commercial return, and ensuring that public investment delivers strong value back to the economy.
One thing that hasn’t changed is the requirement for projects to deliver real benefit to New Zealand. It’s not just about individual business gains; there needs to be a broader value story, showing how your project supports the resilience, competitiveness, or sustainability of the wider sector.
Another difference between SFFF and the PSG fund is the heightened expectation around evidence — applicants need to demonstrate financial stability, justify their forecasts, and provide solid proof of the co-funding or in-kind support that would offset the PSG funding.”
Q: What kind of projects are most likely to succeed under the PSG fund?
“Projects that stand out under PSG fund will be ones that show a clear path to real, measurable economic impact. That could mean boosting profits, reducing production costs, or strengthening a part of the food and fibre value chain in a way that benefits the wider industry.
What MPI’s really looking for is commercial relevance — so the more market-ready or business-driven your idea is, the better. The PSG fund isn’t designed for early stage/discovery research.
It’s also essential for companies to have their co-investment lined up and to show that you’re ready to deliver, not just explore a concept. Think beyond research or frameworks — the fund wants to see end-user adoption and outcomes that last well beyond the life of the project.”
Q: What are some of the key requirements or expectations businesses need to meet when applying?
“There are a few non-negotiables that applicants really need to be across from the outset. First, the PSG fund is a co-investment fund — the government will fund up to 40%, so you’ll need to bring the other 60% of the project cost from non-government sources. That will need to be predominantly cash. Any in-kind contributions need to be well justified.
There’s also a minimum total project size of $625,000, with $375,000 from you and $250,000 from MPI. So this isn’t a fit for smaller-scale initiatives. While there’s no official cap on the upper limit of PSGF funding, MPI is open to supporting multi-million-dollar, multi-year projects — provided there’s a compelling case for investment.
More broadly, MPI is expecting well-developed, evidence-backed proposals. That means being able to clearly articulate your project's value to New Zealand, explain why Crown funding is needed, and demonstrate that you have the capability — financially and operationally — to deliver. This is particularly important for start-ups.
You’ll also need things like written confirmation from any supporters, credible financial forecasts, and a solid project plan with clear milestones and risks accounted for.”
Q: How does the PSG fund application process work?
“Following the pattern set by SFFF the PSG fund application process is detailed and can be demanding — and that’s by design. MPI wants to see that applicants have done the thinking and can clearly articulate the project’s value, delivery plan, and economic impact. You’re expected to provide a strong rationale for funding, a breakdown of outcomes, a full project plan, and detailed financials, along with supporting documents like a Gantt chart and outcome logic model.
The level of detail required really depends on the scale of your project, but even for smaller proposals, it’s a substantial undertaking. And for larger, multi-year programmes, you’re looking at complex modelling and significant coordination. It can be really demanding for companies to pull together an application while also running their operations. However, for those who are successful it can be a real lift to secure this type of funding.”
Q: How can Swell help with PSG fund applications?
“At Swell, we specialise in helping businesses access grant funding. The PSG fund process can be complex, especially when you’re trying to balance it with the day-to-day of running a business — and that’s where we come in. We take the weight off your shoulders, working with you to architect a strong project narrative, ensure strategic alignment with MPI’s priorities, and manage all the moving parts of the application.
That includes everything from clarifying eligibility and co-investment structures, to building the financial model, refining the logic model, and writing the proposal itself. We also help you gather the right supporting evidence — whether it’s support letters, in-kind contribution calculations, or justifying your market assumptions.
Our goal is to simplify the process and give you confidence that your application is not only complete, but compelling. We know what MPI is looking for, and we know how to present your project in a way that clearly demonstrates value for New Zealand. Whether it’s your first grant or your fifth, we’re here to help you put your best foot forward and maximize chances of approval.”
Wrapping up
The Primary Sector Growth fund offers a significant opportunity for growth-focused businesses in New Zealand’s primary sector — but navigating the application process can be complex. If you’re considering applying, or simply want to understand whether your project is a good fit, the Swell team is here to help.
Get in touch to learn more.