Landcorp farms’ network wired for success
State-owned farmer takes technology matters into its own hands, Ali Tocker reports. ‘‘Once you get that communication between boss and staff, things start flowing and you can sort out issues much more easily.’’
Landcorp could not wait for the Government to roll out rural broadband to its farms so, applying the best of Kiwi ingenuity, it did it itself.
Every one of Landcorp’s 122 farms would have commercial speed broadband by Christmas this year, Landcorp chief executive Chris Kelly told Waikato farmers, at Dairynz’s Farmers’ Forum.
The state-owned enterprise used the services of Araneo, an open access broadband network, majority-owned by Nzx-listed Teamtalk. Araneo specialises in designing and implementing solutions to challenging connectivity problems, often ones clients have given up on.
Kelly said it was vital for Landcorp’s positioning as a leading New Zealand agribusiness to be connected, and to have access to key information at the touch of a button.
‘‘We use Dairy Production Recording. I can bring this up on my computer in Wellington from every one of our farms.’’
That is powerful information. Landcorp Farming owns or leases 376,156 hectares of land. With 120 farms and 1.5 million stock units, it is one of New Zealand’s largest farming organisations.
It strives for best practice in dairy, sheep, beef and deer farming, for sustainable use of resources, and for continuous improvement in livestock genetics and farming systems.
In other initiatives, Landcorp aims to build the capability of people in the dairy industry, using best practice employment and human resources practices, Kelly said.
Higher positions such as managing big herds tend to be recruited within Landcorp, as these skills are hard to find. Lower order positions tend to be recruited externally.
A competency-based framework is used when hiring farm managers, with all staff assessed on performance, and with performance pay a component of their salary.
‘‘Ten per cent of their remuneration is at risk. Four per cent of that is company performance, which encourages thinking and working together, and 6 per cent is for individual objectives the farm manager is given by his or her manager.’’
Objectives are reviewed twice a year in a formal sit-down with the farm manager and their manager, and progress is measured at the end of each year.
Objectives could be number of milksolids produced or somatic cell count, for example.
‘‘Once you get that communication between boss and staff, things start flowing and you can sort out issues much more easily,’’ Kelly said.
In spring, Landcorp organises free dinners or late breakfasts for its work clusters.
‘‘People work really hard in spring. We find if we organise these meals, people get together and discuss what they’re doing on their farm and share information. It helps them keep their condition up and they really appreciate it.’’
Landcorp spends about $1500 a year on every staff member on training, including specialist workshops and leadership training.
‘‘We get that spend of over $1 million back in spades,’’ Kelly said. ‘‘It’s easy to hire people to milk cows. It’s harder to get what we call ‘soft skills’, including managing people, which is why we’re investing in leadership training.’’ Landcorp is also strict on holidays. ‘‘It’s easy for staff to say, ‘I can’t leave the farm, I’m irreplaceable, no-one will look after it as well as me’. But it’s just not the case. We make sure our staff take their holidays on an annual basis.
‘‘Holidays are there for a reason. You need to recharge your batteries.’’
In other human resources initiatives, staff are offered succession planning, and spouses of staff are offered opportunities for part-time work with Landcorp.
‘‘Females are very good at raising calves and some are much more computer literate than their partners. It offers them a sense of being part of Landcorp.’’
Landcorp has a strict drug policy – drug testing every new employee. Most Landcorp staff appreciate it, and the parents of young staff particularly appreciate it.
‘‘It’s interesting because we may have 30 applicants for a job and when we tell them drug testing happens, half disappear.
‘‘Every now and then we have drug busts. We had one recently where five staff tested positive to cannabis.
‘‘We sat down with them and worked it though with them. Two of them said ‘bugger it’ and left. We don’t want people like that driving expensive machinery.’’
Kelly said he would like to see agriculture education adapted to become more flexible and responsive to market needs.
‘‘I’m proposing there’s a disconnect between market need and course structure delivery. I’m suggesting there’s a market failure. Courses at AGITO, and Waikato, Massey and Lincoln Universities are very structured and reactive – they have to be because of the funding regimes. The whole structure is very, very ponderous.
‘‘We need management courses above ITO and below university and short courses as we don’t want staff tied up for a year, and we need targeted, responsive courses.’’
Dynamics were changing in farming, including with the growth in herd sizes, which means a different sort of employee is needed.
‘‘As we get smarter in farming, we need people who know and understand computers, people who can interpret loads of data and make management decisions on-farm.
‘‘We need more objectivity and less subjectivity.’’