Budget 2026 Locks in $4.77 Billion MPI Baseline for Primary Sector
Budget 2026 confirms $4.77 billion in baseline funding over four years for the Ministry for Primary Industries. The allocation supports New Zealand's food and fibre sector as exports head for a record $62 billion this year.
Cabinet’s Economic Policy Committee has formally authorised public consultation on a prudential levy to shift Reserve Bank supervision costs onto banks, insurers and market infrastructure operators from 2027/28.
Cabinet has agreed in principle to three shifts in public performance reporting sought by the Finance and Expenditure Committee, while parking detailed design and costings until 2027.
ASB’s Q2 2026 Regional Economic Scoreboard left Wellington joint last with Gisborne while Canterbury led on dairy cash, jobs and retail. The capital’s multi-quarter underperformance is structural: public-service consolidation, a deep housing correction and stalled population growth colliding with a national OCR still set for nationwide inflation.
New Zealand's food and fibre sector exports are forecast to reach $62 billion in the year to 30 June 2026. This marks a 3 percent rise from $60.4 billion the prior year, according to the Ministry for Primary Industries Situation and Outlook for Primary Industries December 2025 report.
The sector accounts for 83 percent of all New Zealand goods exports. It employs more than 360,000 people, or one in every seven workers in the national workforce.
$4.77 Billion Baseline Funding Confirmed
Budget 2026 allocates $4.77 billion in baseline funding to the Ministry for Primary Industries over the next four years. The funding maintains frontline services while the Government pursues efficiency gains.
Agriculture and Forestry Minister Todd McClay said the package backs sustainable growth. "Budget 2026 backs sustainable growth of the food and fibre sector, our largest export earner," he stated.
Food and Fibre Export Revenue
Sector exports are on a sustained upward track, with the 2025/26 figure representing a record high driven by dairy volumes, kiwifruit and rising meat prices.
Source: MPI Situation and Outlook for Primary Industries December 2025
Efficiency Savings Reinforce Fiscal Discipline
MPI will deliver $52.8 million in baseline savings over four years through efficiencies in contracts, property, digital services and support functions. This forms part of wider public service measures to achieve more with less.
The net operating package across Budget 2026 totals $2.1 billion, below the $2.4 billion allowance. New spending of $3.8 billion per year on average is offset by $1.7 billion in savings and revenue measures.
Food and Fibre Export Revenue
Sector exports continue upward trajectory amid global demand.
Source: MPI Situation and Outlook for Primary Industries December 2025
Targeted Investments Alongside Savings
Budget 2026 includes $109.2 million over three years for wilding conifer control. Of this, $30 million comes from MPI baseline funding. The measure improves land management and resilience.
Additional support covers innovative technologies, productivity initiatives and environmental partnerships. Regulatory reforms cut red tape while the New Zealand-India Free Trade Agreement opens new markets.
Outlook to 2027 and Rural Impacts
Exports are expected to exceed $63 billion in the year to 30 June 2027. Sustained growth supports rural communities, the balance of payments and overall GDP.
The sector's performance underpins thriving regional economies where primary industries remain central to employment and local prosperity.
