Last year marked a first for the apple sector, when a severe shortage of picking staff prompted it to announce an official labour shortage well into the picking season. The announcement made through Ministry of Social Development in March last year brought the issue into the national spotlight, and allowed visiting tourists to gain work permits easier for work on orchards.
That announcement was quickly followed by the kiwifruit sector also declaring an official labour shortage, with estimates it was about 1200 workers short for timely harvesting.
Erin Simpson, development manager for New Zealand Apples and Pears, said it was simply not possible for the domestic sector to supply the industry with the necessary staff.
“We will have our crop volumes tied down by the end of January, but by then we will probably also be trying to call a labour shortage, before harvesting even begins. If we declare it early, everyone will know what is going on.”
He said he was loath to put an exact figure on just how short the sector was likely to be for this season. Last year the shortage was estimated at about 2000 pickers, and prompted a call for more Recognised Seasonal Employer (RSE) staff to be bought in from the Pacific Islands.
Government answered that call late last year, granting an additional 1750 spaces nationally, bringing the total for this harvest season to 12,850.
Hawke’s Bay is expected to get about 400-600 of those workers, with 350 heading to Bay of Plenty for kiwifruit harvesting.
But Simpson said one of the biggest challenges for local orchardists was having the accommodation to employ overseas staff. There was a need for greater certainty around worker numbers to give investors certainty for not only future orchard investment, but also accommodation resources.
Estimates are accommodation building costs about $20,000-$25,000 per bed provided.
Marcus Pickens, general manager for Pick NZ, the group tasked with sourcing workers for fruit picking by Horticulture NZ, said backpackers were certainly thinner on the ground this year and last.
“I would not want to put an exact number on it, but there are less. They tend to be our third tier of labour preference, after locals and RSE workers.
“Whether they are skipping the rural areas and finding work in the cities, we are not sure. But tourism and hospitality are charging ahead at present so maybe that is where they are going to work.”
He said his greatest concern was sourcing workers well into the season for tasks like pruning in grape growing areas over winter.
Orchardists were competing in an intense employment environment, with staff drawn to other sectors including construction and hospitality.
While apple crop volumes had yet to be confirmed, expectations were this year’s would be again up on last year’s by about 4%, taking the national total to 600,000 tonnes, with 40% of that harvested in Hawke’s Bay.
Richard Bibby of Thornhill Horticultural Contracting said the additional RSE workers were welcome, and he expected most orchards would be able to meet their picking needs this season.
However his concern was further into the season, as demand peaked through winter-spring for workers to prune and thin fruit.
“We are going to hit that wall in the coming year, there is no way in hell we will have enough local workers to meet those needs. This is more of an immigration issue than a funding issue, we need that certainty.”
The shortage comes as local labour force engagement is at an all-time high.
Employment Manufacturers Association data indicates Bay of Plenty has only 1500 people actively seeking work in the entire region.
Most regions are also experiencing record low unemployment rates varying between 3.5% and 4%.
Both Simpson and Bibby said there was also ample opportunity for anyone seeking full-time employment in the horticultural industry, beyond simply harvesting and pruning.
Simpson estimated there was a need for about 1000 full-time staff now after the apple sector’s significant growth, with opportunities in logistics, orchard management, marketing and management.
“This is why it is concerning seeing the closure of the likes of Taratahi. The industry has got better in recognising the problems we face collectively around immigration, employment and conditions, it is becoming top of mind.”
