Hipkins said the food and fibre industry had a significant skills shortage and jobs in the area would help the nation as it navigates out of Covid-19.
Consortium chairman Jeremy Baker said the CoVE was expected to improve vocational education to build skills in the industry for a sustainable future.
"The CoVE is a significant achievement. It shows an unprecedented level of collaboration within the food and fibre sector.
"This is a decisive step forward in the partnership between the food and fibre sectors and government. The Food and Fibre CoVE will be learner-focused, led by industry and enabled by government."
Napier MP Stuart Nash said the decision recognises the regional expertise in the sector and the work EIT does in education.
"EIT is one of the top, if not the top polytechs in the country. What this will allow it to do is expand on that leadership role that it already has."
Agriculture Minister Damien O'Connor said it is estimated the primary sector will need another 50,000 workers by 2025 and over 92,000 more workers and qualifications.
Nash said, "If you want to study this stuff ... now people will come to Hawke's Bay to do this."
EIT CEO Chris Collins expected over time there would be an increase in student numbers as a result of the announcement.
Federated Farmers Hawke's Bay president Jim Galloway, who had been involved in the bid, said it was "brilliant" news.
"It'll be great for Hawke's Bay and the rest of the country.
"We've got a real advantage here as we have so many different food and fibre industries that we can provide a great opportunity for students and work experience."
He hoped it would mean further involvement of the industry with education.
"Education is key for the next generation, without upskilling people in our industry, in any industry, you stand still or go backwards in the long run."
EIT board chairman Hilton Collier said EIT has "significant capability and expertise" in primary industries education being well connected with the sector in Hawke's Bay and Tairāwhiti and 45 years' experience being an education provider.
The aim of the CoVE is to "build excellence in vocational education through focusing on the success of learners, industry and education".
Key outcomes of the Food and Fibre CoVE include a focus on strengthening the collaboration within the sector to produce well-trained and work-ready graduates; and provide better upskilling and re-skilling opportunities.
It will also support the development of workplace-based learning models which are better suited to industry needs and develop the connection between the industry and education providers.