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New PGP programme to boost wool industry

Hon Nathan Guy
Minister for Primary Industries

10 February 2016 Media Statement


New PGP programme to boost wool industry

Primary Industries Minister Nathan Guy has welcomed a new Primary Growth Partnership programme aimed at lifting the profitability and sustainability of New Zealand strong wool.

‘Wool Unleashed’, or W3, is a new seven-year $22.1 million Primary Growth Partnership (PGP) programme between the Ministry for Primary Industries (MPI) and The New Zealand Merino Company.

The programme is expected to contribute an estimated $335 million towards New Zealand’s economy by 2025.

“The wool industry was once one of New Zealand’s highest earners, with strong wool making up the majority of this, but it has been in decline since the 1990s,” says Mr Guy.

“The W3 PGP programme aims to reverse this trend by delivering higher premiums for New Zealand’s strong wool sector.

“This will be achieved through connecting strong wool farmers with markets, increasing on-shore processing, developing new and niche products and sharing best practice information across the wool industry.”

The programme will build on the considerable success to date from another PGP programme—the New Zealand Sheep Industry Transformation Project—also led by The New Zealand Merino Company, which is focused on fine and mid-micron wool.

“PGP programmes must be aspirational and transformational in nature. They must look beyond business as usual which The New Zealand Merino Company has demonstrated with its leadership in the merino industry and helping to establish the Te Hono Movement - a collaboration of primary sector leaders.

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“Wool has lost its competitive edge as a fibre globally. We have the opportunity to make New Zealand strong wool and strong wool products relevant to select end users globally. The W3PGP programme will be a key contributor towards this, and will set the stage for a sustainable wool industry well into the future.”

MPI and The New Zealand Merino Company have signed a contract so W3 can formally begin.


About the Primary Growth Partnership

• The PGP aims to boost the value, productivity and profitability of our primary sector through investment between government and industry. It provides an essential springboard to enable New Zealand to stay at the forefront of primary sector innovation.
• Government and industry are co-investing $746 million over time into 21 PGP programmes (2 completed and 19 underway).
• Decisions on whether or not to approve a programme are made by Director-General of the Ministry for Primary Industries, under recommendation from the independent Investment Advisory Panel (IAP).
• PGP programmes are generally long-run programmes of five to seven years’ duration and are subject to oversight and monitoring by an independent Investment Advisory Panel and MPI.
• Monitoring requirements include programme steering groups, quarterly progress reporting, annual plans, financial audits, and progress reviews, along with evaluation of the overall programme. Government funding is only released to programmes on receipt of invoices for work completed in accordance with programme plans.
• More information is available at: http://www.mpi.govt.nz/funding-and-programmes/primary-growth-partnership/

ENDS

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