DairyNZ had always advocated for this approach to provide flexibility in how the quota for international workers is filled, DairyNZ strategy and investment leader farm performance Nick Robinson said.
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There had been a much stronger demand from dairy farmers for farm assistant positions, and all of these applications were filled quickly, he said.
"We know there are more farmers who have vacant farm assistant positions that they can't find Kiwis to fill. We are waiting to see further detail of the Government's announcement and will share that with farmers once it's available."
The announcement follows a meeting between DairyNZ, Federated Farmers, Dairy Women's Network and the Government last Thursday, and months of advocacy to try and get an improved class exception process.
While the decision was good news, it was critical the Government supported the dairy sector's request to allow a further 1500 international dairy workers into New Zealand in 2022, and DairyNZ pressed this point home to the Government at this meeting, Robinson said.
"We currently have the lowest unemployment rate we have seen since 2007 - 3.4 per cent, and we know the rate is even lower in many dairying regions.
"With our borders closed, many of New Zealand's core sectors are facing staff shortages, and we are seeing a significant labour shortage on farms too."
Recent labour surveys indicated that the dairy sector is short of 2000 - 4000 workers, and farmers continued to raise the issue as a significant cause of stress, Robinson said.
"Farmers are under real pressure and have been since Covid-19 arrived on our shores. This is simply unsustainable.
"This has been a serious issue for two seasons now. It has taken a real toll on farmers and we cannot let this continue for another season."
DairyNZ also continues to advocate that wage and salary rates for class exception visas align with market conditions in New Zealand.
Dairy employs around 50,000 people and is forecast to contribute over $42 billion to the economy this year.
It was vital for New Zealand that the dairy sector kept performing, and the Government must support farmers by allowing them to recruit international workers if they can't fill positions with Kiwis, Robinson said.