For many years, the Sustainable Food and Fibre Futures (SFF Futures) fund has supported New Zealand's primary sector. From sheep milk to medicinal cannabis, probiotics for animals, and even seaweed, this fund has channelled millions into various innovative projects. However, with a new government comes a shift in focus, and we’re starting to see these changes reflected in how the fund operates.

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Focus for 2024 and beyond

The SFF Futures grants are still driven by their core criterion: benefit to New Zealand. However, the definition of that benefit has evolved. While past applications could highlight a blend of economic, environmental, social, and cultural impacts, the emphasis has now tightened.

In 2024, the primary focus is squarely on economic benefits.To stand out, your project must demonstrate clear, quantifiable economic value, such as increasing exports, reducing costs, or boosting profitability. Other benefits, like social or environmental gains, are welcome but secondary. Without a solid economic case, your application won’t make it through.

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Financial Scrutiny

The bar for financial due diligence has also been raised.Applicants must now provide more detailed financial statements and forecasts to prove their project’s viability. This is especially critical for start-ups, as the SFF Futures fund has grown more cautious about supporting ventures that rely heavily on capital raising. If you're a start-up, be prepared to provide substantial financial evidence to back up your application. It's getting harder to rely solely on promises of future capital.

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Grant Structure Updates

SFF Futures has introduced some notable updates to its grant structure. There’s now a new grant category — Hybrids — which sits between Grants and Partnerships. This category is still evolving but is expected to offer more flexibility depending on the size and complexity of the project.

Additionally, there’s a minimum project size foreach grant type:

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• Grants

Projects need to be at least $625,000 in total, with $250,000 coming from MPI and $375,000 in applicant co-funding.

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• Hybrids

Total project cost must be $2.5 million, with $1 million from MPI and $1.5 million from the applicant.

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• Partnerships

For the most significant projects, with a total cost of $12.5 million or more, the MPI contribution starts at $5 million, with applied funding of $7.5 million.

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What’s New in the Application Process?‍

One of the fundamental changes is the removal of the dedicated business development roles. These roles were vital in co-developing projects with applicants and guiding them through the complexities of the application process. To fill this gap, an Expression of Interest (EOI) stage has been introduced. Now, instead of receiving hands-on support, applicants submit a 2-3 page project outline. If your EOI is accepted, you’ll be invited to submit a complete application, likely with feedback on how to strengthen your proposal. If declined, unfortunately, you won't have the opportunity to discuss the decision.

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Other Developments

While MPI’s recent cost-cutting measures haven’t impacted the fund, there’s always a chance this could change.

Staffing cuts at MPI mean fewer people are now handling a heavier workload, so you should expect delays in processing applications.There’s no longer a specific point of contact; any queries must go through a generic email address.

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Final Thoughts

SFF Futures remains a powerful funding tool for New Zealand’s primary sector, but the landscape is changing. The focus on economic benefit is sharper than ever, and the application process has become more demanding. To succeed, you must present a robust financial case, meet higher project thresholds, and navigate the new EOI process.

Swell is closely monitoring these developments to help you make the most of what SFF Futures offers.

If you have questions or need support, contact Swell today. Let us help you turn your innovative project into a funded success.