Professional Documents
Culture Documents
Sustainable Food and Fibre Futures: Guidelines For Applicants
Sustainable Food and Fibre Futures: Guidelines For Applicants
SFF Futures
Make it happen
SFF Futures is a new
investment programme from
the Ministry for Primary
Industries, designed to
back
new game-changing
innovations across the
food and fibre sectors.
Co-investment 5
Eligibility 6
Assessment criteria 7
Intellectual property 11
Application process 12
Contracting 12
Withdrawing 12
These are not rigid parameters and there is no specific cap on government investment per project.
If you’re not sure which category your project falls into, MPI will work with you to find the best approach. See
Appendix 2: Project and Contract Structure for further information.
• For commercially-oriented projects MPI can contribute a maximum of 40 percent of the total cost, meaning
applicants must fund at least 60 percent themselves.
• It’s important to note that meeting the criteria does not automatically guarantee funding. MPI reserves the right to
decline an application entirely, or provide less funding than requested.
• Applicant contributions are expected to be in cash, but if that is not possible, co-investment may –
at MPI’s discretion – be provided by labour, materials, infrastructure and/or facilities. This is referred to as in-
kind contributions, for further information refer to Appendix 1.
1. Scope
To be within the scope of SFF Futures, the project must relate to one or more of these sectors: agriculture, fisheries,
forestry or associated sectors e.g. pastoral, arable, horticulture, viticulture, apiculture, seafood, wild fisheries, aquaculture,
forestry, wood, food and beverage, dietary supplements, nutraceuticals, agri-tech.
Within those parameters the scope is broad and encompasses all parts of the value chain. New products, technology and
services, and new ways of operating, producing, marketing, handling and distributing are all within the scope of SFF Futures.
4. Co-investment
For proposals to be eligible, applicants must commit to co-funding. Refer to the co-investment section for further
information.
• Capital expenditure, brand promotion costs and other costs which would breach international rules on subsidising
commercial activity. There are limited exceptions – see Appendix 3 for further information.
• Activities that would otherwise be undertaken without Crown funding (i.e. Crown funding should not replace
private sector funding sources).
If you’re not sure whether your proposal meets these requirements, talk to the MPI team.
• Proposals will rate highly if they demonstrate significant impact in these areas according to clearly defined
measures of success. Conversely, if a proposal would result in a negative impact in a particular aspect, it is unlikely to
be approved. There may be exceptions if a proposal can clearly demonstrate how any negative impacts will be
mitigated and that they are significantly offset by positive impacts in other ways.
• The examples below of economic/financial, environmental and social and cultural benefits are not a list of requirements
to comply with. They are examples to help you understand the benefits your project will create for New Zealand and/or
New Zealanders. Use them as thought-starters, and test your thinking by also considering potential negative impacts
– as MPI will do in its assessment. Take the time to understand the impact of your project from these perspectives,
and ensure this thinking comes through clearly in your application.
Economic/financial
• the project team’s capability to develop and then implement a robust extension strategy;
• the extension strategy is based on a good understanding of producers/stakeholders appetite for adoption;
• the ability to measure the extent of adoption and practice change. Proposals for
new products, technology or services must demonstrate:
• clear understanding of the path to market and an appropriate strategy to manage the necessary steps (and the related work
required);
• market insights that includes validation that an accessible market with a likelihood of profit exists.
• that everything necessary to deliver the project successfully is either in place already, or has been identified and
can be put in place prior to the project starting;
• the project team has, or will acquire, the required resources, capability and skills;
• what technical skills the team will bring to the project and what will need to be outsourced;
• that the designated project manager will be able to keep the project on track, on budget and report progress to MPI;
• Can you demonstrate your capability to fulfil your co-investment obligation either through your own resources
and/or associated parties? Can you outline the full amount and scope of each co-investor’s support to the project. If
there are multiple co-investors, you will also need to outline how each
co-investor’s interests will be managed.
• Often project benefits will accrue after completion of the project. How will the project be set up and resourced to
ensure these benefits are delivered both during the project and beyond?
7. Governance
The proposal must demonstrate appropriate accountability to stakeholders:
• identify risks and rate the risks posed by and/or to the project;
• show a project plan of how/when the project will run from initiation to completion.
9. Budget
• Proposals must include a summary budget outlining costs per year, work stream or activity, and funding
source.
• In-kind funding must be described with a relevant explanation of why it is in-kind instead of cash.
• Should the proposal pass the initial assessment stages, a more detailed budget may be required. Budgeted costs
must be eligible and adequately specified, realistic, and appropriate.
10 • SFF FUTURES – GUIDELINES FOR APPLICANTS V2
Intellectual Property
As SFF Futures is about driving innovation for the food and fibre sectors we expect many projects will develop new
intellectual property (IP).
In some cases the IP will have a commercial value and therefore needs to be owned and protected. In other cases,
particularly projects driven by public good, IP will have little or no value beyond the community of interest and should
therefore rest in the public domain.
MPI recognises that the broad scope of SFF Futures means that a rigid blanket approach to IP is not
appropriate.
A number of factors will influence MPI’s position including the balance of public good and
commercial benefits.
Accordingly there will be some flexibility within general principles that:
• for projects where the majority of investment is by co-investors they will have exclusive access to IP developed in
the programme for a defined time period. Subsequently the IP will be made more widely available on reasonable
commercial terms to reflect the government investment in the project.
• where MPI provides the majority of the funding the IP will need to be made freely and publicly available.
SFF FUTURES – GUIDELINES FOR APPLICANTS V2 • 11
Application process
• for small grants MPI will approve or decline the application on the basis of the initial
assessment;
• for larger grants, MPI will assess with oversight from an independent advisory panel;
• for small partnerships and partnerships, the Application forms the first stage in a two- stage
application process. Following the initial review MPI will either request more information, decline
it or recommend it for assessment by an independent advisory panel.
The panel will decline it, recommend it for revision or approve it to proceed to the next stage.
The next stage is an invitation to develop a business case. These will be assessed by the independent
advisory panel and either revisions will be sought or an approve/decline recommendation will be
made for MPI to consider. MPI will then make the final
funding decision.
Where the total project cost is $2 million or more, applicants must also complete an Outcome
Logic Model.
Withdrawing
At any stage after you first submit your application, you can choose to withdraw from the process. Contact MPI so we can
understand your reasons and use this feedback to make improvements to the
SFF Futures process.
• Labour provided by people from the applicant group to plough a field or sow a crop which is a project trial plot (i.e.
the labour cost is contributed to the project as an in-kind contribution, rather than the project being invoiced for
and paying the labour cost).
• Project participants’ (e.g. land owners’) time, where this can directly be attributed to the project and is not work that
would be undertaken anyway in the project’s absence.
• Specialist advice provided by people from the applicant group or co-funding organisation, e.g. to deliver a project
workshop or to provide technical advice on a project.
If labour, staff time or specialist skills are invoiced to the project, these are not considered to be an in-kind contribution.
Acceptance of in-kind contributions as eligible co-funding is at the discretion of MPI. In-kind contributions are most likely
to be accepted for applicants such as community groups who have few cash resources
and whose projects do not have a commercial focus. Talk to MPI if you are unsure whether an in-kind contribution
is eligible.
In-kind contributions and the basis for valuing each type of contribution must be fully explained in the project
budget and be able to be substantiated.
Raw materials
The in-kind contribution of raw materials is valued at the lower of opportunity cost to the owner and market value.
endi
F project plan work which can be agreed from the defined but outcome might depend on some individual steps needed
FU Project delivery, costs,
TU outset. Project delivery, risk testing to prove concept which could impact to get to the final
outcomes and risks well
RE profile and outcomes well defined. timeline/deliverables/ costs. outcome. This may be
defined and certain.
x 2:
S–
because some work is
G Minimal interdependencies. Moderate interdependencies.
UI contingent upon results
DE of other work and/or there
Proj
LI
NE may be several possible
S routes to explore before
FO selecting the best option.
ect
R
AP Cost over the life of the
PL project uncertain and likely
IC
to need
and
A
NT to be revised during
implementation.
Level of planning Simple application with high Application with key milestones and Business Case and project schedule with Business Case with
contr
required level project plan and costings.
The expected outcome(s) must
high level project plan.
Stop go points may be included. The
expected outcome(s) must be
one or two stop go points or stages at
which details of activities completed and
future deliverables agreed prior to further
detailed project schedule
and several stop go points.
The expected outcome(s)
act
struc
be identified, described and
identified, described and quantified. work proceeding. The expected outcome(s) must be identified,
quantified. The actual
must be identified, described and described and quantified.
outcome(s) achieved must be
quantified.
ture
reported.
Reporting of At the end of the project. If there In line with key points/ In line with key deliverables and may Quarterly on progress:
progress are meaningful interim deliverables, and at end of the require interim and/or periodic updates, achievements; risks; benefit
points/deliverables, these should project. so that reporting is at least annual. realization. May be increased
also be reported. to monthly for large and/or
high risk projects.
Feature
Performance
Small Grant
x 2:
points in the programme. MPI may attend all Governance Group
governance meetings if requested by the
No MPI governance MPI must be involved in stop go partner, or at MPI’s discretion.
representative unless requested by decisions and, at MPI’s discretion,
the project. in any other critical decisions. If capex is confined to allowing new product
development and prototype sample production, it
can be considered eligible
Proj
to be included in the budget. However,
production of commercial quantities are not eligible
to be included in the budget. The rule of thumb
ect
is that the appropriate scale of plant/equipment is
10 percent of the size of commercial production. and
contr
Benefits
realisation
The expected outcome(s)
must be identified, described
and quantified. The actual
The expected outcome(s)
must be identified, described
and quantified. The actual
The expected outcome(s) must be
identified, described and quantified. The
actual outcome(s) achieved must be
The expected
outcome(s) must
be identified,
act
SF
F
outcome(s) achieved must be
reported.
outcome(s) achieved must be
reported.
reported. described and
quantified. The struc
ture
FU actual outcome(s)
TU achieved must be
RE
S– reported.
G
UI Evaluation A representative sample may be A representative sample may be Once, mid-way during the partnership, or to At least once, mid-
DE
LI
independently evaluated each year. independently evaluated each year. inform a significant stop-go decision. way during the
NE partnership, or to
S Projects are expected to self- Projects are expected to self- assess Post-completion evaluation.
inform a significant
FO assess part-way through and at part-way through and at the end of
R stop-go decision.
the end of the project. the project.
AP
PL Post-completion
IC evaluation.
A
NT
S Financial Audit At MPI’s discretion. At MPI’s discretion. At least once. At least once.
V2
•
Appendix 3:
Eligible and ineligible costs
New Zealand is a member of the WTO and as such is bound by WTO rules on subsidies. The information below is a
guide (not a definitive list) to help you consider whether costs you expect in the project are likely to be eligible.
The MPI team will help you work this through.
Marketing Costs
Marketing costs may be included in the budget, however, there are specific rules around the type of marketing
activities that are eligible for funding. The general criteria are that the activities must have no, or at least minimal trade
distorting effects or effects on production. The rule of thumb is that if the activity will be used by the co-investor to
support branded sales then it is not eligible.
Examples of eligible activities:
• branded website;
• consumer marketing;
• brand trademarking;
• brand collateral.
Capex
Capex costs may be included in the budget, however, it is important that funding used for capex purchases is not
subsidising commercial operations.
Where capex is confined to allowing new product development and prototype sample production not commercial
production quantities it can be considered eligible. The rule of thumb is that the appropriate scale of plant/equipment is
being 10 percent of the size of commercial production.
• The item is not commercial scale. The company will have no direct commercial benefit from the item (as it is for
development purposes).
• If the item has value beyond the project then the residual value must be agreed and deducted from the project costs
(as that part is not eligible for funding). Note that the time frame may be less than the agreed term; calculation
should be based on the time any item is used for project activities.
SFF Futures
Industries website at:
www.mpi.govt.nz/news-and-resources/publications/
© Crown copyright – Ministry for Primary Industries 2019.
Make it happen
0800 00 83 33 | sff.futures@mpi.govt.nz |
sff-futures.mpi.govt.nz
While every effort has been made to ensure the information is accurate, the Ministry for Primary Industries does not accept any responsibility or
liability for error of fact, omission, interpretation or opinion that may be present, nor or the consequences of any decisions based on this
information. Any view or opinion expressed does not necessaril the view of the Ministry for
Primary Industries.