For as long as I can remember the dairy industry has struggled to attract and retain people. There are varying reasons for this and these have all culminated in the position the dairy industry currently finds itself in. I am hugely passionate about the dairy industry and have experienced firsthand these staffing issues. This is what has led me to investigate this issue.
The chosen focus for this report is to understand why the dairy industry struggles to attract and retain young New Zealanders. Looking at this from an urban point of view, a short online survey was conducted in four different high schools, to gain insight into what their perception is of dairy farming, how they feel about dairy farming, and would they consider a job in dairy farming.
One of the major themes to come through from the survey was that students had little to no knowledge of what was involved in a dairy farming career. While this was disappointing, it was identified as an area of opportunity. With the correct strategy, real in roads can be made in this area. A surprising result from the survey, was that 22% of respondents would consider a job in dairy farming. This was a surprise given the survey was taken in urban high schools.
A change in attitude towards rosters and hours of work was identified as being an important part of making dairy farming attractive. Moving towards a five days on two days off roster will help to reduce the hours worked each week and make the dairy industry much more appealing.
Changing how employment packages are structured was also identified as being a great way to make the dairy industry very attractive. Valuing all additional benefits, such as accommodation, at market rates will make employment packages far more attractive and competitive.
Attracting and retaining young New Zealanders to the dairy industry will require changing traditional attitudes behind the farm gate towards employment and embracing a new way of thinking when it comes to managing people working on dairy farms. Without change, the industry will be doomed to repeat the mistakes of the past.
Major global agri-food trends and changes to the workforce in the future are expected to have an impact on people capability needed in the New Zealand primary industries. With New Zealand’s reliance on exports and competing in international markets, it is recognised that the skills and knowledge will need to keep pace with the evolving demands of society, advances in technology and changing consumer preferences across the global agri-food industry. These are expected to transform the way business is done and in particular how individuals and society interact.
In addition the current government’s focus on sustainability and the environment has also meant there has been a greater emphasis for the primary industries to transition from commodity based agricultural products to high value. People capability, in particular skills that are required post farm gate, is a core asset that will underpin the success of gaining more value out of the products produced and adapting to the accelerating pace of change.
Focusing on the primary industries people capability requirements post farm gate, in particular concentrating on those that add value to agriculture commodities and/or creating high quality premium products and services, the aim of this research project was to:
Gain an understanding of international agribusiness and workforce trends to identify how these may impact on New Zealand primary industries and the people capability required in future.
Discuss the people capability requirements in relation to the primary industries post farm gate and identify core people capability themes and skill sets required by those adding value to agriculture commodities and/or creating high quality premium products and services
Discuss people capability initiatives currently being undertaken by organisations/sectors in the primary industries in relation to post farm gate requirements.
Identify ways to attract and build talent at a post farm gate level.
Key findings from this research project:
It is expected by that there will be many changes to business and within the primary industries in the next 10 years, more so than that has occurred historically. Much of this will be driven by consumer demands and technology advancements. Adapting to these while transitioning to value added export will require different skill sets and capabilities to those needed today.
While it is expected that by 2025 around 230,000 people out of a workforce of 369,700 will be required post farm gate, many of the current industry initiatives tend to focus on attracting and building people capability within the farm gate and at a production level rather than having a view to what skills are needed in order to gain more value out of the products produced at other levels along the value chain.
Many of the technical skills and qualifications that were thought to be needed post farm gate for those that add value and/or create high quality products/services were customer and market focussed. The importance of the capabilities required to develop markets internationally came through strongly given New Zealand relies on exporting the majority of what is produced by the primary industries. A review of industry people capability initiatives indicates that there is currently only a small focus on this.
Although a qualification and/or background in food production or the primary industries is useful, transferable ‘soft’ skills are recognised as being most important given the pace change businesses are experiencing. Agility and adaptability, attitude, communication, empathy and understanding, building relationships were rated as the top skills needed now and in future.
There has been a big effort to incorporate agriculture in education and engage youth with the primary industries. However there does not seem to be a supporting or coordinated industry wide approach that captures or connects the pool of potential talent that has been previously building, potentially undoing the work of these initiatives. This occurs in particular at the post farm gate level.
People capabilities post farm gate require a range of skills and qualifications not specific to the primary industries and can be gained through a number of institutions. Currently sectors seem to limit post farm gate talent pool with many focusing on qualifications or specific degrees in relation to agricultural subjects received from a select few institutions.
Overwhelmingly the perception of the primary industries is seen as one of the biggest challenges with attracting and building people capability not just at post farm gate, but also within the farm gate. In order to attract the people capability required for the future, it was identified that a consistent overarching story/message that is exciting, relevant, inspiring, that resonates and connects the industry to food rather than the term ‘primary industries’ is fundamental.
The following recommendations are points that warrant further investigation:
Determine and develop an overarching industry wide story to create a consistent message that links sectors and the industry to food more clearly.
Provide increased focus on attracting and developing the skills required post farm gate at differing levels. In particular initiatives to help build international and in-market experience.
Create a central platform to capture and connect the talent that is being built by current initiatives engaging with youth.
Target a wider skill base than the narrow group that is currently being targeted and promoted to by current initiatives.
Further investigate future workforce design and apply this to the post farm gate businesses as a way of attracting, developing and retaining talent in the industry.
There are broader aspects to this subject that have been explored but not elaborated on. Overall it is hoped that this research project will offer insights and provide discussion points to what is needed in terms of attracting and building people capability post farm gate going forward.
The New Zealand plantation forest industry currently relies on manual labour to carry out silviculture operations, particularly planting, waste thinning and pruning. However, the industry is currently experiencing significant labour shortages. This is likely to be exacerbated for silviculture operations, particularly for planting in the short-term, with the commencement of the New Zealand Government’s ‘1 Billion Tree’ programme. A potential strategy to overcome the issues of labour shortages for silviculture operations is through mechanisation.
The aim of this study is to provide an insight into the opportunities and challenges of mechanised silviculture for the New Zealand forest industry, with a particular focus on planting, waste thinning and pruning. A review was carried out of the historical and current use of mechanised silviculture in New Zealand and internationally. A survey was also conducted of members of the New Zealand forest industry to attain their views on mechanisation of silviculture.
The review of current technologies showed that for:
Planting, there are machines in Sweden, Finland, Canada and South Africa which have potential, though they would likely require adaption to operate effectively and efficiently in New Zealand conditions. Timberlands Ltd is currently trialling one of these machines in Kaingaroa forest.
Waste thinning, there are currently some machines in operation in New Zealand, but they are limited to relatively gentle topography. There does not seem to be any other suitable technologies available, particularly for steeper terrain.
Pruning, there does not seem to be any technologies that could be readily adopted for use in New Zealand forest conditions.
The results of the survey showed that:
Over 90% of respondents had some or significant issues obtaining suitable labour or contractors for planting and thinning.
Nearly 60% of respondents believed development and/or implementation of mechanisation for thinning was important for their organisation within the next 5 years. For planting and pruning, this figure was 45%.
Over 63% of respondents thought a significant mechanised research and development programme should be developed for either planting, thinning or pruning within the next 5 years.
The main benefit of mechanised silviculture for the New Zealand forest industry is that it could reduce the health and safety risk for workers, particularly on steep terrain.
The most significant challenge for mechanised silviculture is operating machines on steep and variable terrain, as well as dealing with physical impediments (e.g. slash/logs).
The results of the review and survey indicate that the New Zealand forest industry has two options for implementing mechanisation of silviculture, particularly on steep terrain:
Adapt some of the existing mechanised silviculture technologies to enable them to operate effectively and efficiently in New Zealand conditions.
Investigate research and development of new technologies.
Implementation considerations include challenges and risks of technology development, the effect of potential labour supply changes on the viability of mechanisation, and social impacts.
It is recommended that the results of this study are presented to the Forest Owners Association’s (FOA) Forest Research Committee to initiate discussion and determine the desire and feasibility of a forest industry mechanised silviculture research and development programme.
The aim of this report is to identify opportunities for the NZ pork producers to compete with continued and increase imported pork. The three main areas I have investigated are “WHY?” we need to compete. I investigate the reasons for the increase concentrating on pork production in relation to population data. I studied the imported product, its origin and its form and where it is used. I look at the “WHAT?” we need to compete on. Looking at the drivers for purchase and finally I analyse the attributes of pork, such as price quality, welfare and sustainability to see if we “CAN” compete imports.
The main findings of the report are:
Increased population growth
Forecast population growth
Stagnant domestic pork production
Lack of convenient pork products
Pork is an affordable protein option
Need to find alternative pig feed solutions
My initial thoughts were that this report was always going to be a price comparison and that because imported pork is considered cheaper NZ produced pork would never be able to compete. I have been surprised to find the strong correlation of population growth to increased consumption of imported pork. It has been a positive to see the reliability of predicted population forecasts. I believe this offers NZ pork producers real certainty if they choose to make a positive change.
The aspect of convenience is an area that producers have much less ability to impact but it is an area of particular significance, if they can offer a convenient and affordable product to millennial consumers. NZ pork producers must find ways to form strong relationships with processors, manufacturers and the hospitality sectors.
At times it has been daunting to look at the volume of domestic pork production that is needed to maintain the current position let alone improve it. It is imperative that the industry moves forward and strengthen its position. Pork producers can be positive when they look at this problem as solid progress has been made in welfare, quality and sustainability. There are traceability capabilities within the supply chain and the NZ consumer wants NZ pork. The pig is an animal that has the fantastic ability to turn products that humans can’t eat into something they can. Pig productivity whilst continually improving is not be enough to solve this problem. In the future NZ pork producers must become a more significant industry. With that they will become a significant threat if biosecurity is not maintained at the borders and rather than the industry that can be sacrificed it will be one to be protected. So NZ pork industry you maybe a small group of producers but you are powerful.
Around 95 NZ pork producers:
Feed 1.963 million people
On average feed over 20,000 New Zealanders each
Produce over 82 million meals each year
My recommendation is for the industry to work together and grow. Grow in size, grow in numbers and become an industry that grows rural New Zealand and grows New Zealand.
My interest in biosecurity started with the harsh lessons of the PSA incursion into kiwifruit in New Zealand. My small orchard was only 500m away from ground zero and like all growers, I got a crash course in the importance of basic biosecurity and hygiene practices.
I started my Nuffield travels around the world hoping to look at examples of on farm biosecurity practices. It was disappointing to see a total lack of preparedness worldwide, and the only farmers engaging in biosecurity had done so after an incursion had already established.
The worst example of this was, after visiting farms in Qatar which is known to have foot and mouth, we could fly directly to France and head straight from the airport onto a dairy farm with no questions asked. Its little wonder that worldwide we are seeing an increase in exotic pest incursions taking their toll on agricultural production.
Even with world class biosecurity protecting our border, we cannot stop everything. Once we accept that, then it becomes critical what happens inside the border and how we as individuals protect our own border – the farm gate.
After 20 weeks and as many countries it was great to finally meet a farmer that got Biosecurity. He was a banana farmer from Queensland facing the threat of TR4 – a devastating banana disease. One of his comments that really struck me was biosecurity wasn’t about the things you do – the procedures the footbaths. Biosecurity is about culture. It’s about creating a culture that encourages everyone to accept responsibility for their own biosecurity.
The challenge is where will the drive to change this culture come from. Farmers in Britain have forgotten the lessons of foot and mouth and in the kiwifruit industry after only 7 years we are already losing the lessons we learnt. The only way to overcome this is to create a culture where biosecurity is just a part of everyday life – it becomes business as usual.
It’s pleasing to see the launch in New Zealand of Biosecurity 2025’s campaign Ko Tatou – this is us which is about trying to start a national culture of biosecurity awareness. The key is how do we build on this and how do we create this culture within the primary industries.
Kate Scott 2018 Nuffield Scholar - Global Insights.
I have come to the view so far during my travels that globally New Zealand Agriculture is punching well above its weight in terms of both its understanding of the impacts of its activities on the environment, but also in its recognition of the need to change.
This is not to say that we have achieved all that is needed, in fact we are still some way from this. However I believe that we have at least started along the path towards finding solutions to reduce the environmental footprint of agriculture, and to achieve this we need to overcome the following challenges.
The first challenge is goal setting. As I see it there is broad consensus on the need to change, however we need a game plan to guide us on our journey, otherwise how do we go about making this change if we don’t know where we are going? This plan must set out long term, ambitious goals that define what agriculture in New Zealand will look like in the future. Until we have done this any change to our approach remains piecemeal and is unlikely to reduce the footprint of agriculture.
The second challenge is about taking a holistic approach. The path we take must encompass holistic management that is outward looking. We can no longer continue to look at the challenges of agriculture as isolated component parts, and we cannot define our road map without bold leadership at all levels.
We must encompass holistic, community centric, collaborative decision making.
Engaging all of New Zealand will be critical to solving the challenges that we face.
The third challenge is enabling evidenced based decision making. This must play a lead role in shaping our road map.
The fourth challenge is enabling technology. We must continue to encourage innovation and find new tools that help guide our decision making and enable better environmental outcomes.
Information and data are the currency that will bring agriculture from reactive to revolutionary, and we must adopt these now at speed and at scale.
The final challenge is driving a shift to outwards looking policy. I think the answer lies in redefining our approach to policy. This requires a shift from a reactive regulatory approach to a proactive regulatory approach, where regulation and policy is the backstop rather than the front door.
We need to move towards capturing and monetising our sustainability, and to do this we need to address the five challenges:
Clear vision vs. Vague plan
Holistic Working Approach vs. Silos Working Approach
Evidence Based Decision Making vs. Thought Based Decision Making
Technology Uptake vs. Status Quo
Policy Incentives vs. Policy Punishment by Rules.
I encourage you all to get on board with making bold changes for the future of New Zealand, and New Zealand Agriculture.
Right now, farmers throughout New Zealand are confronted by a need to implement change to improve multiple environmental outcomes while still returning a profit.
Supporting them on this journey industry groups, regional councils and central government have developed the Good Farming Practice Action Plan for Water Quality, which acknowledges a range of Industry Agreed Good Management Practices. This has been useful in providing clarity and collaborative industry support for farmers around agreed standards. But I’ve found myself asking the question, “what happens when good practiceis not good enough’? By that I mean, what happens when farmers who in good faith have invested in changes to improve the environment to be considered operating at Good Farming Practice, still exceed community agreed limits? My Nuffield research seeks to explore this issue, considering farm and land use optimisation at both farm and catchment scale.
Farm Environment Plans (FEPs) are often hailed as a primary means to help farmers improve environmental outcomes – and I agree, they have a huge role to play in this space. A tool which farmers can take ownership of to drive tailored and farm specific actions targeting specific management objectives.
However, I really think that we need to utilize FEPs better, and I fear that as they are linked to compliance with an increasingly dominant pass/fail focus around Good Management Practice, FEPs are losing more of the aspiration of a living document and becoming more a tick box for minimum standards.
In the early stages of my individual travels I have been pulling apart different examples of Farm Environmental Planning in Canada, Australia and the UK, leaving me with several key insights – a few of which I’ve highlighted below:
We need to be encouraging farmer innovation with FEPs and provide real market linked incentives for their success.
FEPs should reflect a holistic farm assessment which considers environmental, financial, social, and cultural priorities.
Environmental considerations should have a broad focus, more effectively incorporating aspects around native biodiversity, climate, and greenhouse gas emissions.
We need to be able to more effectively recognise cultural aspects and functions to our landscapes such as mahinga kai.
We should better inform FEPs with non-regulatory decision support tools considering the role and function of ecosystem services and land use optimisation at farm and catchment scale.
To help set farmers up to succeed in the long term, we need to enable effective Farm Environment Planning – linked to market and informed by non-regulatory decision support tools and farm systems modelling.
The impact on our primary production systems of our transition to a low carbon economy
Leader
Economic projections for our low emissions economy miss a fundamental physical challenge in our transition. Biophysical analysis and our primary food systems can address this. Here’s how.
Background
The transition from energy dense fossil fuels to far less dense renewable alternatives is the story of our time. We need a huge transition to low emission energy systems.
Urgency is growing so fast it’s now being hailed a war-scale mobilization of change.
New Zealand’s transition is outlined in our proposed Zero Carbon Act. An outstanding and enormous step forward, this document puts us on the front foot internationally.
But see it in context. Itsunderlying modelling is rooted solely in economics.
The problem
Economics does not reflect the physical impact of our transition, especially on energy.
Taxes, tariffs, interest rates, discounts, exchange rates, bonuses, deficits, etc etc. Strip them away to look purely and simply at the energy aspects of transition.
As a key part of my Nuffield study I did this for the data behind the Carbon Zero Act. I used a method from biophysical economics known as Energy Return On Energy Investment.
This method makes a ratio of the amount of energy our society uses (in coal, petrol, diesel, PV, wind etc) relative to the amount we invest in obtaining that energy (mining, refining, building wind turbines, and shipping fossil fuels etc). Simply put: a ratio of outputs to inputs on an energy scale.
Today, this ratio for our national energy mix is 20:1. Under our ambitious transition scenario for 2050, this ratio is 9:1. A drop of over 50%.
The impact on our economy and especially our primary food systems is unknown, completely unanticipated and probably substantial. Think of it like an alcoholic transitioning from vodka and whiskey to beer and wine. Surely there must be withdrawal symptoms. Where will they bite hardest?
We cannot afford to pursue a transition path on economic merits for several years to have it crash into physical constraints. Reversing back and changing tack would be a massive failure. A loss of resources, loss of trust, loss of direction, loss of time.
The solution
We need a ‘Transition Institute’ within the Independent Climate Body. It does these energy analyses and tackles other biophysical issues. We pioneer integration of its outcomes in our primary food chain, because these people have an immensely practical and innovative grasp of this very physical approach to system optimization. Besides the fact that they drive export revenue. Just the nuts and bolts of transition. No silicon valley. No virtual reality. No exotic financial instrumentation.
Linking our physical knowledge and our economic knowledge, we map out a transition that fits both our financial aspirations and our biophysical boundaries. We’ll lead the world by a good margin in achieving this.
My journey started with a quest to explore what a move to focus more on nutrition would mean for our Primary Industries.
If we diversified and invested into ingredients, extractable compounds and functional claims from our existing production could we increase value for export and develop new market opportunities?
In Canada I had an epiphany. There I met companies who were commodity producers of legumes and grains, within three years they have transitioned to different varieties to become ingredient companies and are now growing specialised crops for customers. These companies are now investing in their own breeding programmes and product formulation businesses, because their produce is no longer grown for visual consumer preferences, it’s grown for its nutrition or extractable value as ingredients.
This was a catalyst for me to think about how NZ could develop secondary income streams that focus on nutrition, micro-nutrients and dietary minimums, and develop a BACK STORY to our food, the environment, our waste, a more diverse, integrated food system.
Premium food should ultimately boost health, our mental health and our wellbeing…… as Industry we need to take a greater lead in developing this strategy around our food.
I believe it’s becoming too risky and expensive for us all to solely focus on end consumer.
Food fashion is far more unpredictable than nutrition, so why do we focus on trying to understand food fashion over nutrition.
If we chose to work with strategic customers already in market, customers who develop products such as formulated foods, nutraceuticals, vitamins, dietary supplements, pharmaceuticals.
If we co-design solutions and products for their existing customer base, we would be opening a new business model and opportunity for growth and export from our existing base.
By working with companies in market, we can utilise their science capability, their consumer research and knowledge, their technology, their Govts funding and their investment $$. We can double up. Our new customer in this space is a customer who already has customers.
We do not have to do everything in NZ anymore or own all the IP. It’s making us too slow and too unresponsive to market opportunities.
We have science and tech capability, but we need strategies that offer both value creation and solutions to environmental and health problems.
More engagement internationally would position us competitively with other countries who have a head start in Industries and market offerings we are just developing. With strong leadership we accelerate adoption of resilient agriculture models and build a more expansive Industry vision.
The opportunity that NZ’s Primary Industry has is an opportunity to create a new pathway.
A story around nutrition, transparency and the environment.
The 2019 Nuffield scholars were announced on Tuesday 6th November at parliament by Hon Damien O’Connor Minister of Agriculture and Minister for Biosecurity, Food Safety, and Rural Communities. They are:
Ben Hancock
Ben was raised on his family’s Wairarapa hill country sheep and beef cattle farm. He is now based in Wellington working for Beef + Lamb New Zealand as a senior analyst, still near the farm and often back home to work.
After working in research and conservation roles in New Zealand, USA and Panama, Ben completed his PhD investigating eco-system services. Ben worked for the Ministry for Primary Industries in biosecurity policy before joining Beef + Lamb New Zealand.
With New Zealand’s agriculture export-focused, improving the diversity of markets can help to minimise volatility and maximise highest value outcomes. There are markets that have traditionally used sheep products that maybe under-utilised by New Zealand. Ben is interested in researching this during his scholarship.
Cam Henderson
Cam owns and operates a 750 cow dairy farm near Oxford, North Canterbury. With degrees in engineering and finance, he has worked in a range of dairy industry roles including time with Fonterra and DairyNZ.
Alongside overseeing farming operations, Cameron currently commits much of his time to the Waimakariri Zone Committee in setting local environmental limits and to representing farmers as North Canterbury Federated Farmers Provincial President.
“All farmers will benefit from adopting the latest innovative practices on the farm and encouraging others to do the same. The faster we can encourage farming to evolve, the less regulatory and public pressure we will have to endure”. Finding the factors that increase the speed of innovation adoption among farmers is a key interest for Cameron.
A trainee in music, golf, snowboarding, flying and Te Reo, Cameron enjoys learning and giving anything a go.
Corrigan Sowman
Corrigan lives in the small rural community of Golden Bay with his wife Ruth Guthrie and their two sons Wylie (7) and Tim (5). He is a partner and manager of the family’s dairy farming business alongside his parents and brother Sam. Corrigan is a graduate of Massey University with a Bachelor of Applied Science, was a former Consulting Officer with DairyNZ and Farm Consultant with FarmRight in Canterbury.
Alongside managing their 400ha dairy farming business, Corrigan has several off-farm roles. He is Chair and Independent Director of the South Island Dairy Development Centre (SIDDC) which operates the Lincoln University Dairy Farm. He is also Deputy Chair of the DairyNZ Dairy Environmental Leaders Forum, an initiative to foster and strengthen environmental stewardship and community leadership amongst New Zealand Dairy Farmers.
Farming practices that strengthen the integrity of the food produced is something Corrigan wants to better understand. “How can we give our farmers better market signals about the value they are creating in their production systems, especially inside a large cooperative?”
Hamish Marr
Hamish is a 41-year-old, 5th generation, an intensive arable farmer from Methven in the South Island. Hamish is married to Melanie and they have three daughters aged 8,5 and 3. Prior to a farming career, Hamish graduated Lincoln University with B COM Ag in 2000 and then spent 4 years with Ravensdown Fertiliser as a field officer based in Ashburton. With his brother and parents, they farm 500ha of arable crops specialising in small seeds.
Outside of farming and family, Hamish is involved in several industry organisations. He is also active within Federated farmers and represents the Herbage seed growers section in Mid Canterbury and within that on the management committee for the Seed Quality Merchants Association, a board that oversees the seed certification scheme on behalf of MPI. Hamish is also involved with the Foundation for Arable Research on the Mid Canterbury Arable Research Group and the Research and Development Advisory Committee. Outside of work he has become a council member on the Ashburton Scottish society representing the Ashburton Pipe Band.
Farmers over the years have become dependent on a vast array of synthetic agrichemicals as a means of controlling weeds, pests and diseases and as a result, increasing yields across the board but this is being challenged and Hamish hopes to study the regulation that is being introduced in Europe and the implications for NZ.
Hamish Murray
Hamish, wife Jessica, three children, Lucy (5) Margot (3) and Jonty (1) farm Bluff Station a 13000 ha High Country property in Marlborough. South Island NZ. He completed an agricultural degree at Lincoln University NZ, economics at Cambridge University (UK), and worked with the New Zealand Merino Company, before returning home to farm in 2008.
Hamish has been managing the farming operation including sheep, cattle and a recent diversification into beekeeping and honey production. He is also on the governance board for the Post Quake farming group helping with recovery from the November 16 Kaikoura Earthquake and a production science group for the New Zealand Merino Company.
Hamish has a real focus on people and relationships and is planning to investigate how the differences in environment, education and culture have shaped the values of our consumers and employees. Recognizing and understanding how these values have been formed and vary between culture and generations is key the success of our marketing efforts being a small export-led country. He aims to search out those organisations in our key export markets for wool, meat and honey which are engaging consumers and understand what is making them successful.
