Industry studies and the Productivity Commission had found primary sector productivity had plateaued and part of the answer to improve that was a strong, flexible training structure, Paine, who is responsible for strategy and investment for people and business, said.
Last week the Farmers Weekly revealed providers responsible for training about 1000 sub-degree trainees were closing or considering doing so.
Figures released by the Tertiary Education Commission reveal demand for training fell last year and so did funding.
From 2013 to 2014 TEC funding for all primary sector training rose $10 million to $102m but fell $7 million to $95m this year because of lower student demand for agriculture and horticulture courses.
Funding for levels three and four training reflected that decline in demand, rising $9.5m from $53m to $62.5m between 2013 and 2014 but falling $5.6m to $56.9m this year.
“The TEC regards primary sector training as a strategic priority and has sought to significantly increase its investment,” TEC chief executive Tim Fowler said.
“However, the sector has for some time experienced a flat demand for qualifications in this area.”
Investment for the coming year was up slightly and would be announced shortly.
Funding next year for levels three and four training in agriculture, horticulture and viticulture was contestable for the first time and allocated according to learner and industry demand, opportunities to increase delivery and improve outcomes, the provider’s performance and value for money.
Paine said industry bodies were trying to fill the void of exiting training providers to address stagnant productivity rates.
“We’re just holding our own at this point and training is at the heart of this,” he said.
Issues with third-party training providers not fulfilling their contracts prompted Lincoln’s Telford division to exit sub-degree training, a lack of demand drove Landcorp to cease its farm cadet scheme and PGG Wrightson was reviewing its AgNZ training business.
Paine said the changes reflected a changing of the guard.
“I am confident we will get to a position of having a few professional, strong providers meeting the needs of a skill-focused industry.
“There will be some pain in the shorter term but my expectation is that we will be better placed in the next 18 months to two years.”
He believed a nationally co-ordinated training sector could be created to oversee industry-agreed training plans delivered by specialised providers.
Not only did the sector need to continue adopting the latest production technology but it needed skilled staff to meet ongoing compliance demands.
Paine was concerned about training in Otago and Southland, which had the demise last year of Agribusiness Training then the ending of Telford’s sub-degree courses and the prospect of AgNZ ceasing to operate.
DairyNZ was supporting a joint plan by Southland Institute of Technology, Ara Institute of Canterbury and Primary ITO to roll out a diploma in agribusiness in the southern region.
“That will help us at the farm management level to support onfarm activities.
“At the other end new entrants to the industry and pre-employment students need to get a year’s experience onfarm before entering the workforce and that is where we see Telford and Taratahi as being really invaluable.
“I would hate to see that lost.”
Paine said the main message to come out of a report by DairyNZ and Beef + Lamb NZ on the primary sector workforce was the need for greater skills.
This has led to the creation of Growing NZ, an alliance of primary sector entities promoting careers, opportunities and training.
A Primary ITO spokesman said it was engaging with Telford about its future and training providers exiting the industry to ensure trainees were not disadvantaged.
It was understood Taratahi Agricultural Training Centre and Invercargill’s Southern Institute of Technology could take over the education of Telford students as soon as next semester.
