The dairy industry is looking to fill the vacancies left by Covid-19.
There was some relief on the dairy farms around the country when the Government recently made an exception at the border and allowed 200 workers, most of them skilled, to enter the country.
But the number still wasn't enough to solve the increasing labour shortage, particularly in the south in Canterbury, Otago and Southland, with a total of 2000 jobs that needed to be filled immediately. The shortage has actually doubled over the past 12 months.
A day after talking to industry group DairyNZ chief executive Dr Tim Mackle about the labour pressures on the farms, the news came through that 150 skilled workers and their families will, from the end of June, spend two weeks in managed isolation and quarantine before taking up management roles.
They will be joined by 50 workers in dairy assistant jobs, and the much-needed labour is likely to come from the Philippines, Sri Lanka, Eastern Europe and South America.
Mackle said the border exception for dairy workers was a step in the right direction — "it's a nod to the cause from the government, but we are 2000 workers short and we need them from overseas as well as New Zealand.
"We've still got a big job ahead."
This time last year the dairy industry, at the start of the new season, had 1000 jobs available.
Then, DairyNZ realigned its GoDairy campaign to attract career-changers into the industry.
Rightfully, DairyNZ thought there would be a demand from people already ensconced in the workforce but had lost their existing job through the Covid pandemic. It didn't quite pan out that way.
"Our thinking was to attract career-changers young and old, but we didn't get any more than normal," said Mackle.
"Everyone expected unemployment to reach 9 per cent by the end of last year and it finished up half of that. There was still strong demand from other industry sectors, such as construction.
"The numbers weren't stacked in our favour. I guess it was hard to up sticks and move south from Auckland — that was a big call for some people."
DairyNZ has refreshed and relaunched its GoDairy campaign, with an accent on digital, to promote dairying as a career of choice and attract younger people, aged between 18 and 25, into the industry.
"We had to stop and rethink the parameters of the campaign," Mackle said. "We will focus our efforts on young people and getting more Kiwi workers on to the farms.
"Our sector has a great story to tell including the lifestyle and career opportunities, competitive remuneration and being part of close-knit rural communities.
"Working in an office is not for everyone, and the wonderful thing with dairying is that you can grow your own business and craft your own destiny," Mackle said.
"One of the challenges we face is that there is not enough advocacy from parents, teachers and career advisers, and that's sad. We hear too often that 'farming is for kids who aren't so bright'. That's not the case — you have to be across a lot of issues in farming."
The starting wage in the dairy industry is an average of $48,000 and workers can move quickly to a farm manager's role paying upwards of $78,000 a year. Accommodation is provided and plenty of on-the-job training is available.
"The number one thing (farm) employers are looking for is attitude and not skills per se. People can be taught the skills," said Mackle.
When the Covid pandemic set in, about 40 skilled farm managers were visiting families overseas, leaving their belongings behind, and couldn't return to New Zealand because of the border closure and the complications of meeting entry rules.
They are expected to be the first in line to re-enter the country and return to their work under the border class exceptions, which included 50 veterinarians.
Agriculture Minister Damien O'Connor said the dairy and veterinarian sectors were facing workforce pressures and these border exceptions will go a long way to relieving those pressures.
"What we have also made clear to sector leaders is that we need to ensure there is a strong incentive for New Zealanders to take up entry-level roles and develop careers in dairying.
"The Government and food and fibre sectors have been working hard to mitigate worker shortages by training and upskilling New Zealanders, but we know that takes time," said O'Connor. "Dairy managers and vets have specialist skills developed over many years, which we can't replicate overnight. Migrant dairy farmworkers will supplement the domestic workforce and provide critical support," he said.
Farmers bringing workers through the border must meet managed isolation and quarantine costs and pay them two weeks' salary while in isolation. They must offer a pay rate of at least $92,000, 1.75 times the current median wage, for an assistant farm manager and second-in-charge roles.
They must also offer a pay rate of at least $79,500, 1.5 times the current median wage, for dairy herd managers.
O'Connor said border exception spaces were limited and demand may outstrip supply.
"Government will work closely with industry to ensure that together we prioritise those employers located in acute need areas or employers that have gone above and beyond to support the sector and recruit Kiwis into roles over the last year."
Mackle said retired farmers have gone back into the milking sheds to help fill the labour shortage — or present staff are just working longer hours and toughing it out. "We do have concerns about people's welfare — as well as animal welfare and environmental performance."
The $20 billion dairy industry employs 34,000 people and each year relies on more than 5000 migrant workers, two-thirds of them arriving on temporary visas and up to 40 per cent of them working in the South Island.
The labour situation has been compounded by the uncertainty of updating visas. Mackle said the processes have been on hold since Covid-19 struck. Temporary one-year visas were rolled over last September, and there's a longer waiting time for three-year visas.
Several hundred workers have been in New Zealand for six to eight years and have enough points to qualify for residency — but they have been waiting up to two years to get their residency processed and signed off.
"We do need to hang onto these skilled workers, as well as attract more Kiwis into the industry, and we are calling on the government to expedite their residency so employers can have more certainty," said Mackle.
The processing delays have caused some of these workers to look towards Canada. "We do have some leakage to Canada," said Mackle, "because the rules for entering the country are more relaxed than New Zealand's. They work here for three years, obtain the skills, and get into Canada just like that."
Squeeze on costs collides with rising excises to sour sentiment.