“It’s very positive to see a mechanism to allow a tax incentive that would encourage investment in the tools and infrastructure that would improve farming practices, and for that to be encouraged in that way is a very positive move, I think, both for New Zealand farmers and growers and for the technology businesses that can help them grow their businesses.”
O’Connell said the $100 million injection into the state-backed Elevate venture capital fund – to help high-growth technology companies with strong export potential – was a “really welcome commitment” from the Government to support later-stage start-ups.
“It’s definitely going to include agritech start-ups that will bring new technologies and solutions through to farmers and growers here in New Zealand and around the world,” he said.
“So it’s a very positive commitment to supporting the growth of those businesses, and it signals confidence in New Zealand-founded innovation.”
Today, the Government said it would invest $246m in a new fund over four years “to supercharge growth and productivity” in the food and fibre sector as part of Budget 2025.
“The new Primary Sector Growth Fund (PSGF) replaces the former Sustainable Food and Fibre Futures Fund and will focus on practical projects that reduce costs across the food and fibre sector value chain and deliver stronger returns on investment to the farm and forest gate," Agriculture and Forestry Minister Todd McClay said.
But O’Connell said that change seemed like a shifting of funds for the sake of it, rather than a comprehensive plan.
“I think most people would think sustainable food and the primary sector go hand in hand.
“There seems to be a little bit of playing with ideologies rather than actually focusing on what things are investable.
“I believe the new approach is to look at high-value co-funded economic growth opportunities.
“So I guess the focus of the investments is changing – rather than sustainable futures, it’s economic growth.”
He was also worried that a move to make more efficiencies in the science sector was not being matched by investment.
New Zealand now needs a joined-up strategy that positions it as an agritech sector food innovation force, and helps farmers and growers to do this, he added.
“We’re saying we want economic growth and we want investment, but we’re not really talking about what’s investable, or putting out a co-ordinated national vision for food and fibre innovation that could attract really serious global investments and include significant growth.
“All of this is a positive step forward, but now we need the next one, an actual joined-up strategy to position New Zealand as an agritech food innovation force that will help our farmers and growers.
“It just feels like we’re playing with deck chairs, and I think we can take a more positive and bold step forward.”
– RNZ
