Major new plan for future innovation in the pastoral and food industries: NZ Fast Forward

Prime Minister Helen Clark today announced that the Labour-Progressive Government is committing $700 million to a new research, development, and innovation plan for the future in New Zealand’s pastoral and food industries.

Helen Clark said the commitment is the largest ever boost to research, development, and innovation funding in New Zealand’s history and will help transform New Zealand’s primary industries to meet future challenges.

The government’s upfront investment of $700 million will grow to around $1 billion as it earns interest over the next ten to fifteen years. In addition, industries will be expected to match the government’s commitment on an annual basis, resulting in an expected total fund of around $2 billion over the next ten to fifteen years. This fund will be called NZ Fast Forward.

“New Zealand has long enjoyed a competitive advantage in industries such as farming, horticulture, and fisheries, but that is no longer a given,” Helen Clark said.

“We need to lift our levels of innovation on the farm, in the factory, and in the laboratory to keep ahead of the rest of the world and ensure that our pastoral and food industries are part of the new economy for New Zealand in future.

“This bold new initiative is part of the Labour-Progressive Government’s plan for the future to transform our economy into a smart, innovative, and high value supplier of goods and services which global markets demand.

“NZ Fast Forward will have a strong focus on making our pastoral and food industries environmentally and economically sustainable. That is both the right thing to do for the environment - and the smart thing to do, as we have much to gain from being viewed by our trading partners as sustainable producers and suppliers,” Helen Clark said.

Agriculture and Fisheries Minister Jim Anderton said there were examples of small companies in New Zealand where research, development, and innovation has seen profits leap to millions of dollars a year.

“Investment in innovation pays huge dividends down the track for both the industries and the country. That is why this new fund is a partnership,” Jim Anderton said.

“An establishment group has been formed to provide detailed recommendations on the fund’s management. It is envisaged that a joint government and industry body will administer the funds to ensure that they are targeted effectively,” Jim Anderton said.

So far, four broad areas where major challenges and opportunities have been identified:
• sustainable pastoral systems
• research and education capability
• food innovation clusters, and
• internationalisation.

Economic Development Minister Pete Hodgson said the Labour-led Government had made economic transformation a priority, and this was a very high priority for our large primary sectors.

"New Zealand's unique capabilities on the land will help us become the “go-to” country for 21 century solutions. We have tended to be low-key in trumpeting our talents for smart environmental solutions, but we can now capture global opportunities as the world becomes more aware of sustainability," Pete Hodgson said.