Are Pet Food Producers Missing Out on R&D Funding?

In recent discussions with local pet food manufacturers, we have found unrealised opportunities to tap into valuable government funding for Research and Development (R&D).

The industry has impressive innovation in pockets. From novel processing methods to formulation stability and ingredient testing, our pet food innovators are constantly solving technical challenges that could qualify as R&D.

Yet we know the wider ‘food and beverage’ sector is among the lowest sectors taking advantage of available research and development funding – less than 1 in 5 producers who are known to being doing R&D are receiving the flagship R&D Tax Incentive (source: StatsNZ surveys and RDTI statutory reviews). It seems likely that kiwi pet food producers may be in the same boat, with many innovative businesses overlooking or discounting the available funding despite undertaking eligible activities in their everyday operations.

Innovation already happening in your production line

You might already be doing qualifying R&D without realising it. Examples include:

• Developing new products
• Testing novel ingredient types, their interactions and compatibility
• Investigating nutrient retention in alternative drying methods
• Scaling-up production
• Adding/removing ingredients while maintaining palatability
• Enhancing shelf-life and pathogen reduction
• Trialling additives of unknown performance

Three R&D funding programs that must be on your radar

1. Research and Development Tax Incentive (RDTI): New Zealand’s core R&D support mechanism, widely available and providing a tax credit worth 15% of eligible R&D expenditure.
2. New to R&D Grant: A targeted entry-point grant for businesses when first launching R&D. The grant funds 40% of eligible costs, up to $400,000, and includes funds to help build internal R&D capabilities.
3. R&D Loss Tax Credit: Provides tax refunds for eligible loss-making R&D companies, converting up to 28% of qualifying R&D losses into cash. This can combine with RDTI and the grant, making it particularly valuable for start-ups investing in R&D before reaching profitability.

Don’t know where to begin with claiming R&D funding?

Navigating R&D funding and grants can be challenging. Definitions of eligible R&D vary between programmes, application requirements can be detailed, and fixed deadlines mean businesses often need to plan well in advance.

Independent advice can assist with early eligibility assessment, preparation of application material and supporting documentation, engagement with regulators and support through the year-end claim process.

For pet food manufacturers, this kind of review can help clarify whether everyday technical work may fall within the scope of available support. Many New Zealand businesses are already experimenting, refining processes, and addressing technical uncertainty as part of normal operations, but may not have formally considered whether those activities qualify for funding. This may be a useful time to review current activities and assess whether support is available.

About BlueRock New Zealand

BlueRock NZ’s R&D specialists offer independent advice and comprehensive support for kiwi businesses, simplifying the process of funding their growth and innovation projects. From predicting benefits with accurate early estimates, to writing technical narratives and preparing tax claims, we streamline every step. Get in touch today to see how we can help you leverage these opportunities to fund and grow your business.