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Foodeast update

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September start date once last of i’s dotted

With the i’s almost dotted and the t’s almost crossed, the construction of Foodeast will be underway by September.

The building of Hawke’s Bay’s Food Innovation Network hub, the sixth in New Zealand, is expected to be completed by the end of 2022.

It will be a place of innovation and connection, designed to add value to the region’s food, beverage and agri-tech industry by assisting businesses to develop new products and take them to market. It is forecast to add $100m to the region’s GDP over 15 years, and bring 500 new full-time jobs to Hawke’s Bay.

Heinz Wattie’s non-executive chairman and Foodeast establishment board member Mike Pretty says international demand for New Zealand products is ever-growing, and Foodeast will ensure Hawke’s Bay is at the forefront of innovative food product development. “Innovation occurs in expansionary and challenging times, and it could be argued that the imperative to find new creative solutions is even more compelling in the latter. The timing of Foodeast, particularly given the challenges of the last year, could not be better.”

The project’s partnership approach would make it a “beacon” of innovation.

“Evidence clearly shows strong collaboration between government, universities and industry can underpin improved levels of innovation and national productivity – look to Denmark and Singapore as great examples.”

Over the past month, most of the project’s administrative requirements had been completed, with just the execution of the sale and purchase agreement for the land and the formalisation of the board that will manage the facility to go.

The $18 million funding target had been reached, and the majority of preconditions required for the Government’s Provincial Growth Fund investment of $12m met.

The sale and purchase agreement for the Foodeast site in Elwood Rd, Hastings, is just waiting on the issuing of the Certificate of Title from the Land Transfer Office. That process is expected to be completed over the next month.

“It has been a very involved and meticulous process to get to this point, but the outcome will be game-changing for Hawke’s Bay’s food, beverage and agri-tech industries,” says establishment board chairman Tony Gray.

The food innovation hub would be part of the national Food Innovation Network of New Zealand, giving the region’s food producers and the agri-tech industry access to specialised industry knowledge and experience, and mentoring. The network is committed to helping food and beverage businesses to research, develop and test new products, and then take them on to markets both in New Zealand and overseas.

A small, dedicated Foodeast team would help business owners connect with the right people across the national network, and also act as a conduit within Hawke’s Bay – especially matching entities with a need for facilities, such as specialised filling equipment or a commercial kitchen, with those with capacity.

Mr Gray said the Foodeast feasibility study showed that in almost every practical area, there was capacity within the region. “But what we don’t have, is somewhere a start-up or small-to-medium business can go to find out whether, for example, a test kitchen within the region has capacity to accommodate other businesses.

“What we don’t want to do is put facilities in there that are already available in the region – this is not about reinventing the wheel.”

But, if the need for a specific piece of equipment that would be highly used became obvious, it could be able to be accommodated, he says. “The spaces are very flexible; it has been important from the start that we ensured this place would grow with us. At the speed of positive change we are expecting, we need to be ready for anything.”

The facility would have a mix of commercial areas for permanent tenants, ‘hot-desking’ spaces, and rooms for brainstorming and meetings.

Industry players, large and small, had shown strong interest over the past 12 months. “They recognise the opportunities this will open up,” said Mr Gray.

“Foodeast will be of real practical value – a brains-hub and a connection point, with services tailored to fit the size of the businesses looking to step up their product range. What we want to see out of this is an explosion of new, innovative products including agri-tech, that will appeal to New Zealand and export markets. It’s about adding value. Primary production is a strong contributor to our region’s GDP and out of this initiative we will see the value in the sector grow, which will lead to sustainable high-value job growth.”

The Innovation family:

New Zealand’s Food Innovation Network hubs:
·       the FoodBowl, Auckland
·       Food Waikato, Hamilton
·       the FoodPilot, Massey University, Palmerston North
·       FoodSouth, Lincoln University, Canterbury
·       Food South Otago, Otago University, Dunedin

Foodeast funding shares:

·       Hawke’s Bay Regional Investment Company Ltd (HBRIC) – $4m
·       Progressive Meats – $1m
·       Hastings District Council – $1m
·       MBIE Provincial Development Unit (PGF) – $12m

Contact us

Tenancy opportunities

Terry May
Tanglin Group, Commercial Property
terry@tanglin.co.nz
Mobile 021 434 872

Investment opportunities

Tony Gray
foodeast Establishment Board Chairman
tonyg@hdc.govt.nz
Mobile 021 939 593