Allan Barber: Agriculture outpaces available workforce

No sooner have prices for agricultural commodities reached a new and higher plateau than the supply of people to work in agriculture threatens its future profits. Returns to most commodity sectors, with some notable exceptions, have improved significantly over the past 10 years.

Lamb, beef, dairy products, wine in particular and, possibly, kiwifruit have developed a sustainable growth pattern and, despite the inevitable ups and downs of commodity markets, seem to have grown beyond mere commodity status. Technological advances in agricultural production methods, leading to improved genetics, superior pasture varieties, vacuum packaging, pharmaceutical products, and superior grape clones, to name just a few, have made it possible for New Zealand to punch well above its weight in many areas. But a shortage of qualified people at all levels makes it difficult to realise the gains and poses a long-term threat to development of the industry.

There is a lack of agriscience graduates to satisfy the growing demand for scientists. Last week Massey University announced five new scholarships in agriscience to address the lack of suitably educated and qualified candidates for the wealth of jobs available. This state of affairs affects other sectors and disciplines, but none has the same potential as agriculture to add to New Zealand's GDP.

It's not immediately obvious to me whether the lack of students is the result of the high cost of university courses, a lack of funds for scholarships, competition from other industry sectors and professions, or the tendency of the best talent to head overseas in search of opportunities and immediate income.

At the other end of the chain, the meat industry is facing a shortage of meat workers for four main reasons: the increasing average age of its workforce, the seasonal nature of the work, the drift from rural areas to the cities and overseas, and the low level of unemployment. If there aren't enough skilled slaughtermen and boners available to man the processing chain, the industry quite simply cannot meet the demands of the international customers for product at the right time.

All meat processors are experiencing difficulty in recruiting skilled workers, as evidenced by the fact that 130 workers made redundant as a result of PPCS's decision to close its Tirau plant have found or been offered jobs in nearby plants already. The Meat Industry Association (MIA) has applied to the Immigration Service for slaughterers to be put on the skills shortage list, so that its members can look overseas, possibly to South America, for workers with suitable experience and skills. This mirrors the situation in Britain and Ireland, where many of the meat plants are importing labour from Eastern Europe.

However, this is seen by the MIA as a short-term remedy, rather than a silver bullet. A wider strategic initiative is necessary to address the problem, which is being looked at by a working group with representatives from the MIA, meat industry training organisation, Ministry of Social Development, Work & Income, Department of Labour and the Meatworkers Union. The group's concern is that old perceptions of the industry don't accurately reflect reality.

But it is clear that agriculture must market itself, not as the backbone of the economy, but as an exciting and vibrant career choice in the largest contributor to our GDP, representing more than 20 per cent of New Zealand's exports.

* Allan Barber is a freelance writer, business consultant and former chief operating officer at Affco.