Govt nurturing New Zealand’s seed supply chain
New Zealand’s government is backing a $3 million loan to build a seed processing facility in Central Hawke’s Bay, aiming to cut costs and boost local growers’ returns.
The Regional Infrastructure Fund will provide a $3 million loan for a new seed cleaning, processing and storage facility in Central Hawke’s Bay, led by local growers. Currently, much of the region’s seed requiring specialist handling is sent outside Hawke’s Bay, often to Canterbury, adding transport costs and reducing growers’ profits. The project aims to centralise these operations locally, streamlining the seed value chain from drying through to storage. Officials say this will improve efficiency and resilience for the sector while positioning Hawke’s Bay as a key seed production hub.
Central Hawke’s Bay District Council coordinated the RIF application in partnership with local seed growers, who will also contribute $750,000 in co-funding alongside the government loan. The facility will serve growers and seed companies across Hawke’s Bay and the lower North Island, expanding processing capacity beyond Canterbury. It is designed to strengthen domestic supply chains and reduce reliance on distant processing centres. The council and growers have worked together to finalise the project’s scope and funding arrangements.
Associate Regional Development Minister Mark Patterson says the investment supports Hawke’s Bay growers by providing infrastructure to expand production and increase exports. He highlights that transporting seed outside the region for processing adds unnecessary costs and delays, which the new facility will address. The government loan and grower co-funding aim to create long-term opportunities for the region’s seed sector. Patterson emphasises the project’s role in improving local value retention and sector resilience.
The Regional Infrastructure Fund loan will be repaid, with growers and industry contributing $750,000 to the total project cost. The facility is expected to reduce transport-related inefficiencies and improve returns for local growers by keeping processing within Hawke’s Bay. Officials state the project will enhance the region’s capacity to meet domestic demand and export opportunities. It is part of broader efforts to strengthen New Zealand’s seed supply chain infrastructure.