Labour shortage sees dairy migrants flee NZ
Lockdown has mixed effect on primary industries
Keeping Covid-19 off farms, forestry blocks and orchards is the main focus for those working on the land as the primary industries tackle another lockdown.
But a dairy heavyweight says migrant workers are leaving for other countries because “they know they and their families will be welcome” and the labour shortage has caused “fatigue, stress and burnout”.
Leaders in the sectors say despite the setbacks strong prices across the board for meat and dairy products are positive news while the Port of Tauranga continues to export large volumes of logs and kiwifruit.
Te Puke sheep and beef farmer Rick Powdrell said the price of lamb and beef was looking positive at about $9 and $6 a kilo respectively.
Wool, which had hit historic lows in the past, was the only downside however those prices had also started to climb slowly.
“Wool has still got a long, long way to go but even in that space we are seeing a real swing towards natural products.”
In Powdrell’s view the biggest challenge other than the labour shortage was “ridiculous” compliance regulations from the Government and farmers “have had a guts full”.
Federated Farmers Bay of Plenty provincial president Darryl Jensen said it was business as usual.
“I don’t want to make light of the lockdown but we are an essential service. So you see everything seems to be going okay.”
Jensen was three-quarters of the way through calving and said there may be some frustration around getting urgent bits and pieces.
“But we are just repeating the lessons we learned from the last lockdown.”
Dairynz chief executive Dr Tim Mackle said it was focused on keeping farm teams Covid-free.
“Looking after our dairy farmers and keeping our farms running is vital – any Covid-19 on a farm is the last thing we want to see right now.
“We all share concerns about the health and economic effects Covid will have on our families, communities and New Zealand, and farmers are working hard to minimise risks to keep their businesses running smoothly.”
Mackle said it was also continuing to talk with Government on several fronts including visa exemptions, MIQ spaces and to reunite families across the border and fast-tracking residency applications for migrant workers.
“These issues are very serious, migrants are leaving for other countries because they know they and their families will be welcome.”
A Fonterra spokesman said products were still being exported from the Port of Tauranga.
“The port is very important to us and is a significant part of our supply chain. The vast majority of our products made in the North Island leaves through the Port of Tauranga.”
That was about 1.4 million metric tonnes every year.
Meanwhile, Fonterra dairy farmers are
expected to pump $12 billion into the New Zealand economy including $1b to the Bay of Plenty.
Hancock Forest Management NZ Ltd general manager Kerry Ellem said all of its forestry operations had stopped.
The port was still loading logs onto ships from existing piles but that stock could dwindle quickly and if it hit zero “we will stop exporting.that’s what will happen if we stay in level 4.”
Ellem said Hancock exported and supplied the local market with about three million cu m of wood and every day 1500 to 1600 people worked in its operations.
Forest Industry Contractors Association chief executive Prue Younger said it was heading towards the end of the planting season and the sector did not have enough staff.
Ironically the lockdown was a reprieve of sorts. “We are trying to use as many Kiwi workers as we can and on the harvesting side we need drivers and operators. There is a changing profile in our industry. We are not just looking for fit, physical people we are now looking for a skilled labour force that can use that expensive machinery.”
Log prices were not as strong as they were a few months ago but were not near the bottom of the barrel.
New Zealand Kiwifruit Growers Inc chief executive Colin Bond said winter pruning was taking place on orchards right now.
Pruning was a critical phase and not doing it would impact the volume and quality of kiwifruit harvested and ultimately the jobs and economic returns the industry brings to regions across New Zealand, he said.
“The industry is also conducting repack at the postharvest level which is another critical task. The extent of the impact of this lockdown on the kiwifruit industry is unclear at this time.”
Priority One chief executive Nigel Tutt said primary industries were very important for the region and a key part of its resilience to the previous lockdown.
“Not only do we get the benefit of these industries directly, but there are many spillover benefits to the port, transport companies and local firms.”
A Port of Tauranga spokeswoman said it was still exporting large volumes of logs and kiwifruit.
“We’ll be announcing our trade volumes for the year next Friday.”
She said there were more containers in the terminal than the same time last year, but there are no delays in getting import containers to Auckland.
“There haven’t been any significant delays since Kiwirail increased the number of trains in May. Container vessels are still arriving off-window and we are processing them in the order in which they arrive.”
That means they may need to spend a short time at anchor, she said.
“However, most of the ships at anchor at the moment are log vessels waiting to come in and pick up exports.”