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AgITO - Adding value to our industries

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AgITO Annual Report 2011
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ANNUAL REPORT 2011 ADDING VALUE TO OUR INDUSTRIES
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Page 1: AgITO - Adding value to our industries

AnnuAl report 2011 Adding vAlue to our industries

Page 2: AgITO - Adding value to our industries

Agriculture ITO (AgITO) facilitates the training of more than 12,000 people every year in the agriculture and water industries.

We work closely with the industries we represent to identify skill needs and develop training and qualifications that will give people the knowledge, practical skills and confidence to perform their jobs well. In turn, our industry’s employers see a tangible benefit to their business and a strong workforce is developed with a core, transferable skill set.

Our management level training helps managers and owners stay competitive, enhance systems and improve the operational and strategic management of their business.

Registered on the New Zealand Qualifications Framework, AgITO qualifications are recognised as the national industry standard.

Page 3: AgITO - Adding value to our industries

Sheep, Beef Cattle, Dairy, water & waStewater treatment, water retiCulation, poultry, pork, wool harveSting, peSt management, rural ServiCing, agriBuSineSS management

CMYK logo

EGG PRODUCERSFEDERATION OF NZ

POULTRY INDUSTRYASSOCIATION OF NZ

Funded and supported by

Page 4: AgITO - Adding value to our industries

ContentSKey Results 5Chairman’s Report 7Chief Executive’s Report 9Corporate Governance 12Balanced Scorecard 15In the field – provision of training 17Agriculture Services Limited 33

Leadership and Collaboration 35Engagement with Māori 37Setting Standards 39Promotion of Training 41Our People 45Financial Reports 48Organisation information 53

CASE STUDIESJulia Bent 19 Michael Blank 23Cameron Hogg 27 Sean McHenry 31Jared Crawford & Sara Preston 43

SECTOR REPORTSDairy Sector 18Sheep and Beef Sector 21Wool Harvesting 22Corporate Key Accounts 25Water Industry Training 29

Page 5: AgITO - Adding value to our industries

viSionOur vision is to be world class at developing people for our industries.

miSSionOur mission is to deliver ‘can do’ people to grow productivity, profitability and sustainability within our industries:

› Ensuring world-class industry training for the future, today

› Developing the skills and knowledge of individuals for personal growth

› Engaging actively with those who can make a real difference to deliver on enterprise, industry and government strategy

› Collaborating strongly with industries to influence government policy and funding.

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Page 7: AgITO - Adding value to our industries

knowleDge to grow

Page 8: AgITO - Adding value to our industries

Credit Weighted Programme Completion Rate

46%Target 2012

45%

MA’s active at year end

529

Credit Achievement Rate

63%Target 2012

60%

AgITO operates under the provisions of the Industry Training Act 1992 to facilitate workplace learning for people employed in our industries. We set the education standards for 80 qualifications across the agriculture and water industries. We also arrange for training to be delivered through accredited providers, monitor training quality and arrange for assessment of trainees.

SectorTrainees Credits Completed Programmes

2010 2011 2010 2011 2010 2011

Dairy 6,945 7,898 217,103 231,091 3,483 4,941

Pest Management 569 537 5,743 5,193 229 392

Pork 44 87 1,234 993 3 29

Poultry 197 181 2,943 4,680 56 97

Rural Servicing 355 383 2,631 5,064 122 181

Sheep & Beef 944 797 22,277 22,828 280 366

Water 815 1,075 27,974 29,357 181 572

Wool Harvesting 1,453 1,561 32,507 35,770 609 420

key reSultS

National Certificates Achieved

6,202Credits Achieved

354,352

Trainees Training with us

12,921Employers with Staff

5,270

In addition to fulfilling our mandated role, our major funder the Tertiary Education Commission and our industry partners set a number of priorities for us. These included raising the number of people engaged in training at Level 4 and Level 5, improving literacy, language, numeracy and skill outcomes, engaging more Māori/Pacifika students in training and improving qualification completion rates.

The credited weighted completion rate is calculated as completions against the amount of funding we receive. Programme completions are credit weighted to allow for comparisons across ITO’s and to take into account the relative size of different programmes.

34.5% inCreaSe in national CertifiCateS aChieveD over 2010

nCea CertifiCateS aDminiStereD

401

5 | Annual Report 2011

Trainees by Level

Level 1

Level 2

Level 3

Level 4

Level 5

Trainees by Ethnicity

European

Māori

Not stated

Other

Pacific Islander

Trainess by Age

24 and under

25-34

35-44

45+

32%

32%

20%

16%

68%

17%

4%10%

1%

3%

21%

43%

26%

8%

Certificates Achieved includes National Certificates, National Diploma, Limited Credit Programmes and Supplementary Credit Programmes.

Page 9: AgITO - Adding value to our industries

Annual Report 2011 | 6

Page 10: AgITO - Adding value to our industries

Chairman’S report

2011 has been the most challenging year of the three years I have been Chairman. We have made progress on significant strategic changes to the ITO throughout the year, while at the same time remaining in a strong financial position throughout a dynamic operational environment. It is very clear to us that major reform of the ITO sector is needed and we have been dedicated to leading the change rather than having change thrust upon us.

It is the clear desire of Government to reduce the number of ITOs in New Zealand and to increase the educational performance of the sector to support growth within our economy. Much of the Board’s work has been with the Primary Sector Group of ITOs to examine how we might work collectively to achieve the strategic outcomes sought by Government and we have made major progress in this direction.

The outcomes sought by Government include a more efficient and effective vocational training system that supports economic growth. It needs to be industry lead, provide flexibility and innovation and meet industry demand. This is a position which is strongly supported by our industry partners and stakeholders. It will require collaboration across industry sectors and throughout the tertiary education environment. Trainees must experience greater success and gain transferable skills so that the entire economy gains benefits. We have been very fortunate in having a Board that is totally committed to achieving these goals, and industry partners in the Dairy, Meat, Pork, Wool and Water sectors to name a few, that are striving to lift human capability to achieve economic growth. We are totally aligned.

Through our work with the Primary Sector Group, we identified that a joining of AgITO, Horticulture ITO, Equine ITO and Sports Turf ITO would provide a significant step towards achieving the Government’s goals, while adequately mitigating the risks associated with achieving such a goal. Our focus has been on working collaboratively so that all our stakeholders interests are preserved, and our customer facing staff – our training advisors and other field staff, are not adversely affected so that they can continue to deliver the trainee numbers and completions required for our financial success. Similarly we will be making sure that our support functions remain strong to support our

customer facing staff.

The dynamic operational environment has been primarily around how we are funded and how our performance is measured by our primary sponsor, the Tertiary Education Commission (TEC). As outlined by the CEO, there were significant changes to TEC’s operational policies and the way they have been implemented. This has created difficulty for all our staff to meet increased trainee targets and to ensure we achieve higher credit achievement and programme completion rates than ever before. The team have done a wonderful job in delivering on these key outcomes.

From a governance perspective, there are aspects of the changed policies and operational procedures that have been less than satisfactory. We have invested heavily in an IT system to record data in TEC’s Industry Training Register (ITR). The ITR has performed very poorly from our perspective. The consequence has been that we have not been able to easily demonstrate our performance to TEC and therefore had significant income at risk, relating to the attainment of key performance indicators. As mentioned in the CEO’s report, we lost TEC funding simply through the way training was purchased and we budgeted accordingly for that. However at the year end we had nearly $2M of funding at risk and to not have this resolved three months after the close of the financial year, has created significant difficulties for us as a Board.

The potential claw back of funding has put at risk our strategic initiatives to merge with the other ITOs. The uncertainty of funding support from TEC struck at the core of our efforts and has threatened the business case supporting the merger. That said, at the time of writing this report, a positive outcome is expected from our strategy to consolidate training in the Primary Sector.

Our future looks bright. We have forged very strong

7 | Annual Report 2011

Page 11: AgITO - Adding value to our industries

Cliff TiplerBoard Chairman

relationships with other Primary Sector ITOs and we look forward positively to the merger with Horticulture ITO in 2012. While we are constrained by the Industry Training Act in who we can train, and are facing potential changes from a Ministerial Review of the ITO sector, we believe there is tremendous opportunity to work closely with our industries to provide training at higher levels. Also to be more responsive and to possibly operate outside of our traditional tertiary funding model to meet industry needs and to demonstrate leadership.

My thanks go out to my fellow Board members for their wisdom and support, and to all the staff who have supported the ITO throughout 2011 and delivered another successful year.

Annual Report 2011 | 8

Page 12: AgITO - Adding value to our industries

Chief eXeCutive’S report

As we move into 2012, we have come through one of the hardest years in AgITO’s history. Against a backdrop of strong performance in the export sector and an increased demand for training, we faced major changes in how our largest stakeholder, the Government, through the Tertiary Education Commission (TEC), subsidised industry training. This had the effect of reducing the level of funding available to us by around $3 million or 13% of our total income.

The operational policy changes implemented by TEC in 2011 meant we faced a significant shortfall of trainees to maintain our forecast funding level. A focused effort in June and July by our field team, supported by our national office staff, meant we were able to pull training numbers back to a sustainable level.

When we consider these achievements in a difficult environment we have coped remarkably well.

In addition to our qualification completion achievements, as an organisation we raised the level of our productivity by 11% and achieved a net growth in trainee numbers. This is measured through an increase of 27% in the number of people in training with the ITO. We began the year with 6,012 trainees and exceeded our forecast to achieve 7,623 people in training. This is the result of a massive effort by our staff and I wish to acknowledge and thank our team for delivering both quantity and quality outcomes.

AgITO exists to add value to our industries, building the right transferable skills amongst those in employment which in turn contributes positively to our country’s economy. It is always a balancing act as we ride the line between meeting the needs of our funders and ensuring industry training for our sectors delivers the outcomes they need.

To measure our success from an employer/trainee perspective we must ask ourselves two key questions:

› Does an employee (a trainee) feel they are better equipped to perform their current role, and do they believe they are now able to move up the career ladder as a result of training with AgITO?

› Does an employer observe improved performance of their employee who is in AgITO training and does the employee add value to their business?

To gain the answers to these questions we survey our customers annually and I am proud to report that the level of satisfaction remains high. 87% of trainees and 83% of employers rated our service as excellent or good and 89% and 85% respectively are likely or very likely to recommend us to others.

We are focused on the needs of our customers and will continue to ensure our products and services first and foremost meet these needs rather than changing our products and services to satisfy a funding model.

Collaboration is the cornerstone of our strategy. We maintain a close working relationship with key industry organisations DairyNZ, Beef + Lamb NZ, the Pork Industry Board, Water NZ, the Egg Producers Federation and the Poultry Industry Association of NZ. These are key strategic partners for AgITO and play an important role in helping direct our strategy. DairyNZ, Beef+Lamb NZ and the Pork Industry Board also help fund AgITO from farmer levies.

There are a number of exciting collaborative arrangements which have been put in place during 2011 that we intend to progress. These include;

› Trialling a new approach to training support in the Wairarapa with Taratahi Agricultural Training Centre

› The work that the Primary Industry Capability Alliance (PICA) is doing creating progression and career pathways.

› Projects with DairyNZ and Beef + Lamb NZ to

9 | Annual Report 2011

Page 13: AgITO - Adding value to our industries

Kevin BryantChief Executive

improve the level and quality of learning by bringing their informal extension education work together with formal (NZQA) qualification work done by AgITO.

› The strengthening relationship with the Federation of Māori Authorities (FoMA) and their members is also a very important part of our future.

AgITO is in a sound financial position, has strong industry backing and is focused on delivering on our vision to be world class at developing people for our industries. We know that this will only happen by working closely with our many stakeholders, collaborators and at times, competitors. To develop and maintain a world class vocational education and training system we need to play a leadership role and we need to be prepared to change ourselves.

I wish to acknowledge and thank our Board for their support and direction of AgITO in 2011. Their governance has ensured a sustainable and strong ITO going forward.

Finally I would like to acknowledge and thank our staff. We ended the year in a strong position because of the passion our team has for what we do – we really care about our customers. With people like these in our team we cannot help but be successful.

Annual Report 2011 | 10

Page 14: AgITO - Adding value to our industries

87% of traineeS & 83% of employerS rate agito ServiCe aS eXCellent or gooD

11 | Annual Report 2011

Page 15: AgITO - Adding value to our industries

Corporate governanCe

In 2011 AgITO’s governance structure recognised two types of members – individual members represented through the Regional Committee structure, and Corporate members through recognised industry organisations.

The AgITO National Board meets at least six times each year and represents the key groups of education, industry, employers and trainees.

Three directors are elected by our Regional Committee members – Don Seath, Murray Linton and Peter Langford.

Three directors are elected by our Corporate Members – Cliff Tipler (Chair, representing Water), Barbara Kuriger (DairyNZ) and Leon Black (Beef + Lamb NZ).

Three directors are appointed by the Board – Tanira Kingi, Chris Kelly and Wayne McLaughlan, for the unique skills and relationships they bring to the Board.

Annual Plan for the Board

An Environmental Scan was produced by the Strategic Business Development team and presented to the Board in April 2011. This formed the basis for the development of a Strategic Plan.

AgITO operates under the provisions of the Industry Training Act 1992, to facilitate workplace learning for people in employment.

AgITO BOARD

REGIONAL COMMITTEES

Northland

Waikato

Bay of Plenty

Central Plateau

Taranaki

Manawatu/Whanganui

Eastland

Hawke’s Bay

INDUSTRy COMMITTEES

Agriculture

Pork

Poultry

Water

Vet Nursing and Para Veterinary

BOARD COMMITTEES

Audit

Remuneration and Appointments

Investment Plans

Honorarium

Wairarapa

Top of the South

West Coast

North Canterbury Mid Canterbury

South Canterbury/ North Otago

Otago

Southland

3 directors elected by Regional Committee, 3 directors elected by Corporate members, 3

directors appointed by the Board

AgITO Regional Committee Chairs – Front row (L-R): Nicola Ashley (Taranaki), Andrea Harvey (Top of the South), Carmen Greenwood (Central/North Canterbury), Suzanne Butcher (Wairarapa), Chris Hurlston (Central Plateau), Peter Wapp (Manawatu), Colin Muir (South Canterbury/North Otago). Back row (L-R): Phil Moeke (Bay of Plenty), John Wauchop (Eastland), Grant Love (North Otago), Ted Ford (Top of the South), Damian Dixon (Northland), Carwyn Monteith (Hawke’s Bay), Jeremy Duckmanton (Mid Canterbury), Robyn Boswell (Waikato)

AgITO Board – Front row (L-R): Barbara Kuriger, Wayne McLaughlan, Leon Black, Chris Kelly – Back row (L-R): Tanira Kingi, Cliff Tipler (Chair), Murray Linton, Don Seath (Deputy Chair) and Peter Langford.

Annual Report 2011 | 12

Page 16: AgITO - Adding value to our industries

The environment for all ITOs is changing with the Government’s desire for more efficiency, better performance and fewer ITOs. Changing performance requirements from TEC led the Board to alter performance criteria and modify budget targets mid-year. A considerable amount of time was spent by the Board managing risk to the organisation, in particular, the implementation of TEC policy changes and their impact on AgITO performance.

The Primary Sector Group (PSG) of seven ITOs including AgITO commissioned a report assessing options for PSG ITOs to work together more closely. One of the main conclusions from the report was that a high level of governance and management capability is critical to realise the opportunities that exist from a merged, sector based ITO model.

While the option to merge all seven PSG ITOs remains open, the Board decided to proceed with meaningful talks with the Horticulture ITO during 2011. A steering group of three Directors from each Board was formed. For AgITO these were Cliff Tipler, Don Seath and Barbara Kuriger. The talks progressed to the point where a decision to merge has been made subject to conditions being met under a Deed of Merger. In the interim AgITO have absorbed Equine ITO and Horticulture ITO are in the process of absorbing Sports Turf ITO.

In this new environment, it will not be practical to retain the representative based governance model currently used. We are therefore moving to a competency based model which is captured within a new Constitution approved by our stakeholders in March 2012 to be adopted when the Deed of Merger is satisfied.

Board Performance Review

An independent Board Evaluation Report was commissioned in March 2011. The observations of that report will be addressed by the move to a new Constitution with a competency based appointed Board for the future. The report noted that it is always difficult

to obtain the required skills through an elected process. However AgITO has been well served by a Board comprised of elected and appointed members. They have delivered skills, connections and experience in the capacity required by AgITO.

Our governance capability was confirmed as excellent by a New Zealand Qualifications Authority (NZQA) External Evaluation and Review. AgITO was the first ITO to receive an excellent rating in every category.

Regional Committees

Operating at a local level our Regional Committees provide an important link between our management structure and grassroots farming. Their core role is to provide feedback on qualifications, support the promotion of training locally and organise Skills Days and AgriAwards events. The Chairs of each Committee come together three times each year.

In 2011 the Committee members volunteered their time to organise 16 AgriAwards and 17 Skills Days across the country. AgriAwards are key events to celebrate and recognise the achievement of qualifications by our graduates and acknowledge our outstanding high achievers with awards.

A review of AgriAwards has been undertaken to streamline activity and provide better support of the events from a national level. The Regional Committees provided valuable feedback which alongside input from our field teams has enabled us to implement an improved process going into 2012.

In the coming year the Regional Committees will continue to fulfil a valuable role in supporting AgITO field activities and events such as AgriAwards and Skills Days. They will also maintain the important link between governance of the ITO and grassroots level and provide consultation on programme and qualification development.

“training iS a prime eXample of SpenDing money to get more BaCk – the BenefitS outweigh the CoStS”Scott Leving Farm Manager, Otago

13 | Annual Report 2011

Page 17: AgITO - Adding value to our industries

17 SkillS DayS

16 agriawarDS

Annual Report 2011 | 14

Page 18: AgITO - Adding value to our industries

Action Plans/Measures 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2011 Target 2012 Target Comments

› We have systems and processes that best support our changing business

Standard Training Measures (STMs) meet budget 105% 104% 97% 97% 100% 100%

Operating surplus/deficit -0.44% 2.83% 0.33% -3.42% 1.80% 1.80%

Training cost/STM $2,712 $2,812 $2,353 $2,573 $2,684 $2,219 STM funding is $2919 per STM

Total costs/STM $3,910 $3,962 $4,079 $4,584 $4,289 $4,373 STM funding is $2919 per STM

Support costs as a proportion of total costs 17% 15% 20% 14% 15% 15% Change in structure of CS and Prod Dev - increased costs here

Productivity Index (credits achieved/total cost per 1000) 15.76 16.25 13.76 15.90 17.88 15.39 Credits/Total costs. Timing Issue where a larger volume of credits come through near the end of the year

Industry contribution 22% 22% 23% 26% 22% 30% Industry contributions to training is leveraged by government contribution through TEC

› Understanding our market needs/outcome focused learning (OFL)

› Customers value our products

› Effective channels to market

› Provider management

› Value of the brand

Programme completions 36% 36% 43% 46% 45% 45% Credit weighted achievement a new measure in 2011

Credit achievement 350,372 370,490 324,042 354,023 405,626 358,617 Larger volume of credits come through near end of the year however this target unlikely to be achieved

Number of trainees in training/full time equivalent staff member (FTE) 56 58 54 54 Indicator of ongoing workload effectiveness, the higher the number the better

Mix of levels of study Indication of progress towards achievement of government objectives

Number of courses 948 931 896 922 980 980

Average number of people in courses 9.3 9.4 8.5 8.7 10 10 Effectiveness of recruitment into courses, minimum should be 10

Customer satisfaction survey >80% 95% 85% 82% 82% 80% 80% Level of satisfaction of employers and employees.

› Attracting new people

› Retaining people

› Training and developing people

› Leading and communicating with people

% Ranking in Best Work Places (BWP) 38% 37% 58% 64% 31% 31% Currently in 2nd quartile

Employee turnover 17.50% 7.80% 17.60% 17.73% 13% 13% Expected to be higher due to realignment in Wellington

% of salaries spent on training per year 3.03% 2.00% 2.80% 2.85% 3% 3%

% of staff who feel engaged with AgITO 32.00% 38.00% 33.00% 23.40% 60% 60% Lower than expected engagement a sign of nervousness in current environment, and response to pressure

BWP leadership score >80% 73.30% 79.70% 76.50% 76.50% 80% 80% Indication of how strong staff feel the organisation leadership is

› Environmental footprint

› Develop future leaders in the rural and water sectors

› Community support

Environmental footprint monitored CO2 emissions per FTE 9 7.8 7.8 7.7 7.3 7.3 Reflection of effort to reduce carbon emissions

Community events 38 36 36 48 35 35 Includes agri-awards, Maori Farmer of the Year, Dairy Trainee of the Year, Water Industry Trainee of the Year, Skills Days and a number of other trainee awards

People involved in leadership development activities 64 55 65 65 75 75 Reflection of investment in development of individuals with potential in the sector

Investment in industry good activities including internal time $604,940 $474,000 $347,000 $347,000 $483,000 $483,000 Expenditure reflecting focus on areas where we really make a difference

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15 | Annual Report 2011

Page 19: AgITO - Adding value to our industries

Action Plans/Measures 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2011 Target 2012 Target Comments

› We have systems and processes that best support our changing business

Standard Training Measures (STMs) meet budget 105% 104% 97% 97% 100% 100%

Operating surplus/deficit -0.44% 2.83% 0.33% -3.42% 1.80% 1.80%

Training cost/STM $2,712 $2,812 $2,353 $2,573 $2,684 $2,219 STM funding is $2919 per STM

Total costs/STM $3,910 $3,962 $4,079 $4,584 $4,289 $4,373 STM funding is $2919 per STM

Support costs as a proportion of total costs 17% 15% 20% 14% 15% 15% Change in structure of CS and Prod Dev - increased costs here

Productivity Index (credits achieved/total cost per 1000) 15.76 16.25 13.76 15.90 17.88 15.39 Credits/Total costs. Timing Issue where a larger volume of credits come through near the end of the year

Industry contribution 22% 22% 23% 26% 22% 30% Industry contributions to training is leveraged by government contribution through TEC

› Understanding our market needs/outcome focused learning (OFL)

› Customers value our products

› Effective channels to market

› Provider management

› Value of the brand

Programme completions 36% 36% 43% 46% 45% 45% Credit weighted achievement a new measure in 2011

Credit achievement 350,372 370,490 324,042 354,023 405,626 358,617 Larger volume of credits come through near end of the year however this target unlikely to be achieved

Number of trainees in training/full time equivalent staff member (FTE) 56 58 54 54 Indicator of ongoing workload effectiveness, the higher the number the better

Mix of levels of study Indication of progress towards achievement of government objectives

Number of courses 948 931 896 922 980 980

Average number of people in courses 9.3 9.4 8.5 8.7 10 10 Effectiveness of recruitment into courses, minimum should be 10

Customer satisfaction survey >80% 95% 85% 82% 82% 80% 80% Level of satisfaction of employers and employees.

› Attracting new people

› Retaining people

› Training and developing people

› Leading and communicating with people

% Ranking in Best Work Places (BWP) 38% 37% 58% 64% 31% 31% Currently in 2nd quartile

Employee turnover 17.50% 7.80% 17.60% 17.73% 13% 13% Expected to be higher due to realignment in Wellington

% of salaries spent on training per year 3.03% 2.00% 2.80% 2.85% 3% 3%

% of staff who feel engaged with AgITO 32.00% 38.00% 33.00% 23.40% 60% 60% Lower than expected engagement a sign of nervousness in current environment, and response to pressure

BWP leadership score >80% 73.30% 79.70% 76.50% 76.50% 80% 80% Indication of how strong staff feel the organisation leadership is

› Environmental footprint

› Develop future leaders in the rural and water sectors

› Community support

Environmental footprint monitored CO2 emissions per FTE 9 7.8 7.8 7.7 7.3 7.3 Reflection of effort to reduce carbon emissions

Community events 38 36 36 48 35 35 Includes agri-awards, Maori Farmer of the Year, Dairy Trainee of the Year, Water Industry Trainee of the Year, Skills Days and a number of other trainee awards

People involved in leadership development activities 64 55 65 65 75 75 Reflection of investment in development of individuals with potential in the sector

Investment in industry good activities including internal time $604,940 $474,000 $347,000 $347,000 $483,000 $483,000 Expenditure reflecting focus on areas where we really make a difference

Annual Report 2011 | 16

Page 20: AgITO - Adding value to our industries

“the ClaSSeS reinforCe the theory SiDe of what you’re Doing anD they’re a gooD forum for queStionS. agito training giveS you an amazing grounDing in knowleDge.”Ben Smith, Dairy Trainee of the Year

in the fielD – proviSion of training

AgITO and Water Industry Training have 12 hub offices and 78 field staff in local communities around New Zealand. These teams represent the ‘coal face’ of our business.

From assessing the skill needs of farm businesses to providing mentoring and goal setting for Modern Apprentices our field staff give on the ground support to our trainees and employers. They also work closely with contracted providers and tutors who fulfil the off-

job learning aspect of industry training.

Our qualifications help businesses to up skill their employees, developing their skills, knowledge and confidence to do a better job, thereby improving farm performance. Those in management roles can benefit from our training by learning how to improve the operational and strategic management of their business, improving systems and staying competitive.

The key challenge for our field team in the year ahead is to recruit more people into learning at Level 5 which focuses on management level training. This is the area identified by industry and government stakeholders where training can make the most impact.

Qualification Resources

Work diaries were introduced in 2011 as a method of measuring skill development and experience for Level 2 to 4 core qualifications. Work diaries enable trainees to more easily document the skills they’re learning on farm. Capturing this learning on the go makes it easier for employers and trainees to see where improvement is needed and naturally demonstrate the evidence to show what’s been achieved.

17 | Annual Report 2011

Page 21: AgITO - Adding value to our industries

Certificates Achieved includes National Certificates, National Diploma, Limited Credit Programmes and Supplementary Credit Programmes. Completion rate is calculated by training programmes completing against finished training programmes (either completed or non-Completed).

Number of Trainees 2010

6,945Number of Trainees 2011

7,898

Certificates Achieved 2010

3,688Certificates Achieved 2011

5,259

Completion Rate 2010

50%

Completion Rate 2011

51%

Modern Apprentices 2010 2011

Percentage trainees who are MA’s

10% 8%

Dairy

New Zealand dairying continues to thrive. Building the skills and knowledge of the people working in this industry plays an important part in ensuring its positive performance. We increased the number of people in training behind the dairy farm gate by 14% in 2011.

We continue to work closely with key industry stakeholder DairyNZ on multiple levels. Our field teams have collaborative plans in place ensuring regional needs are identified, events are timed appropriately and farmers are well supported. We also continue to enjoy support from the various dairy companies, particularly in the areas of Milk Quality and Effluent Management training.

Trainees by Level

Level 1

Level 2

Level 3

Level 4

Level 5

Trainess by Age

24 and under

25-34

35-44

45+

9%

34%

37%

20%

1%

19%

43%

29%

8%

Annual Report 2011 | 18

Page 22: AgITO - Adding value to our industries

CaSe StuDytraining meetS new ChallengeS

Originally from Tauranga, Julia is currently milking 740 cows just outside of Ashburton. She got her start in agriculture after marrying her husband, Warren.

“I met Warren 12-13 years ago and that’s how I got into dairy farming,” she says. “I thought doing the National Diploma in Agribusiness Management would be very helpful as I do all the books and a bit of the human resources side of things on the farm.”

Warren became an equity manager this season, just after Julia completed her Diploma in April 2011.

“We were lower order sharemilking for the last six years and have just gone into this new position this season,” she says. “It’s a good change that’s bringing in new challenges – we always ran our own business prior to this but now that we’ve gone in with other shareholders it’s all a bit different.

“The Diploma has absolutely made a big difference. One of the reasons for doing it is that what you learn can be applied on a day to day to basis on the farm. I wanted to up skill to be able to support Warren and be part of a successful partnership in the dairy industry.”

The National Diploma in Agribusiness Management covers the skills and knowledge essential for the successful management of a farm business. The qualification focuses on developing skills in business planning, financial and resource management and is achieved by completing two standalone National Certificates. Diploma candidates must also complete a Property Report on the performance and opportunities of an agribusiness, tying all the skills and knowledge learned together.

Julia says one of the most useful parts of the Diploma for her was the human resources information in the resource management certificate.

“It’s normally Warren and three others, but at the moment we’ve got two staff and a relief milker,” Julia says, adding that one of the staff is currently also enrolled in training through AgITO. “I keep coming back to the HR info, it’s been really helpful as things come up with the staff.”

Julia adds that the biggest help in the shift to the new role has been the skills learned in the Business Planning and Financial Management certificate.

“I enjoyed it,” Julia says. “It was challenging and quite in depth. Bob Simpson, the tutor, was very good. The financial side of things is very important, the Diploma has been especially useful since we became equity managers. We now have shareholders and monthly reports to do so it’s an on-going challenge to apply the skills I learned.”

Julia was presented with the ‘Excellence in Agribusiness Management’ award at the Mid Canterbury AgriAwards, receiving the title in recognition of her outstanding work towards her Diploma. She is now looking to the future and concentrating on working towards her career goals.

“I think you should never stop learning,” she says. “I absolutely recommend the Diploma to other people. I take my hat off to people who are working on farm and get through it.”

JULIA BENT DAIRY FARMER AND EMPLOYER

Motivated dairy farmer Julia Bent is using the skills and knowledge she learned through AgITO’s National Diploma in Agribusiness Management to succeed.

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“i aBSolutely reCommenD the Diploma to other people. i take my hat off to people who are working on farm anD get through it.”Julia Bent

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Sheep anD Beef Cattle

The increased returns in the Sheep and Beef Cattle sector have resulted in a more positive outlook but we are yet to see this translate into an increase in training uptake.

Because of the remote location of many sheep and beef farmers, off-job training is sometimes delivered in ‘block course’ programmes. Delivered by Agribusiness Training and the Open Polytechnic, these three day programmes result in higher average completion rates and we hope to expand this model in 2012.

We thank Beef + Lamb NZ for its ongoing support, and look forward to building a closer relationship with it in the future.

Certificates Achieved includes National Certificates, National Diploma, Limited Credit Programmes and Supplementary Credit Programmes. Completion rate is calculated by training programmes completing against finished training programmes (either completed or non-Completed).

Number of Trainees 2010

944Number of Trainees 2011

797

Certificates Achieved 2010

268Certificates Achieved 2011

422

Completion Rate 2010

31%

Completion Rate 2011

31%

Trainees by Level

Level 1

Level 2

Level 3

Level 4

Level 5

Trainess by Age

24 and under

25-34

35-44

45+

Modern Apprentices 2010 2011

Percentage trainees who are MA’s

14% 17%

21 | Annual Report 2011

13%

39%

30%

18%

5%

11%

33%

42%

8%

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Trainees by Level

Level 2

Level 3

Level 4

Trainess by Age

24 and under

25-34

35-44

45+

wool harveSting

Wool harvesting is our second largest training sector and is managed on our behalf by training provider Tectra.

In 2011 we were pleased to support several key industry events through our sponsorship of Golden Shears, the Merino Fine Shearing Championships and the NZ Shearing Championships.

Trainee numbers were subdued over the course of the year but with an improvement in market prices we hope to see an increase in the number of people training in this sector in 2012.

Certificates Achieved includes National Certificates, National Diploma, Limited Credit Programmes and Supplementary Credit Programmes. Completion rate is calculated by training programmes completing against finished training programmes (either completed or non-Completed).

Number of Trainees 2010

1,453Number of Trainees 2011

1,561

Certificates Achieved 2010

647Certificates Achieved 2011

674

Completion Rate 2010

76%

Completion Rate 2011

33%

Modern Apprentices 2010 2011

Percentage trainees who are MA’s

16% 24%

Annual Report 2011 | 22

9%

51%27%

13%

43%

38%

18%

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CaSe StuDytraining a muSt in farm effiCienCy

His passion for learning also extends to encouraging his two staff members to up skill through training.

After growing up on his parent’s and grandparent’s farms, Michael is back in the dairy industry after an intervening period working as a financial adviser. He says the decision to go back into farming came after having children.

“We had a young family at the time and we had to pay the mortgage on one income, so it was for lifestyle and financial reasons. We looked at our options and decided to go back into farming.”

Michael is now contract milking 670 cows near Te Awamutu for farm owners Murray and Paula Steele and has completed a number of qualifications through AgITO, including the National Certificate in Agriculture (Dairy Farming) (Level 4), Milk Quality Stage 1 and 2 and Dealing with Dairy Farm Effluent.

“I’m now doing Production Management,” he says. “I’ve just completed Mastitis Management and am about to complete Rural Staff Management as well and send my assessments in for marking.

“It’s been great, having come back into farming the training options available now are brilliant – there are more courses available than when I was farming before,” he says. “What AgITO offers is brilliant really.”

He says all of the training he’s done has been helpful day to day on the farm, but in terms of profitability for the business, he’s seen the biggest gains from AgITO’s Mastitis Management workshop.

“We had a change in cell count pretty much straight away,” he says. “It’s been under 150,000 for most of

this season. Before that it was between 150-200,000, so we’ve pulled it down a bit.”

Michael has also encouraged his team to take advantage of training opportunities.

“I have two staff – a herd manager and an assistant herd manager,” he says. “I’ve put them both through Milk Quality Stage 1 and Dealing with Dairy Farm Effluent and hopefully my herd manager will do Dairy Farming Level 4 next season.

“It’s beneficial for them to up skill,” he says, adding that gaining a new perspective is one of the biggest benefits from staff. “Rather than hearing everything from me they can hear it from a tutor in class.”

He believes the benefits of having well trained staff also extend to him as a manager and to the farm as a business.

“Training reduces mistakes, money and time. If a problem does arise employees have a good understanding of how to solve it and the places to look for answers,”” he says. “Everyone should be up skilling and increasing knowledge - it’s important for the industry. It’s beneficial for the farm owner and for themselves going forward if they train.”

He is quick to point out that the perceived costs involved are quickly eclipsed by the benefits received.

“All employers should encourage their staff to up skill and train. Some farmers don’t want to spend money out of their pocket on training if staff are going to move on, but there are enough immediate benefits that it pays off.”

MICHAEL BLANK CONTRACT MILKER AND EMPLOYER

Improved on-farm skills and knowledge are just two of the benefits that Te Awamutu contract milker Michael Blank is seeing from completing his qualifications through AgITO.

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“training reDuCeS miStakeS, money anD time. if a proBlem DoeS ariSe employeeS have a gooD unDerStanDing of how to Solve it anD the plaCeS to look for anSwerS”Michael Blank

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Training in these sectors remained steady in 2011 and we will continue our work to grow the number of people training and achieving qualifications in 2012.

Our key accounts team work closely with our clients to tailor training programmes to meet their specific business needs. For example in 2011 we helped PGG Wrightson to create a year long academy programme where trainees complete the National Certificate in Rural Servicing (L3). PGG Wrightson are enhancing the programme with their own training and using their own experts to deliver it. The first graduation was held in December in Auckland.

We worked alongside Farmlands to develop a National Certificate in Grain, Seeds and Crops Level 5 which is due to be available for enrolment in 2012.

In the pest management sector we worked with Animal Health Boards to transition people who had completed the AHB industry certificate into the National Certificate in Pest Management Level 3. The industry is seeing the

benefits studying the broader qualification can bring.

We also continue to work in partnership with several of the corporate pastoral organisations to accommodate and achieve their training requirements. We have lifted the number of people engaged in training with Landcorp, working with them to ensure trainees gain a higher completion rate, meeting Landcorp’s requirements to develop people in the industry.

Dairy Holdings Limited (DHL) and AgITO have formed a partnership and developed a training structure for the organisation. This training structure focuses on compulsory and highly recommended training which will develop all employees with DHL. DHL have committed to focus on farm safety, effluent training and management skills. In addition to this a training register has been developed to enable all trainees to be monitored on their progress.

Corporate key aCCountS

Our Corporate Key Accounts team are responsible for managing sector portfolios for pork, poultry, rural servicing, pest management and corporate pastoral farming.

“it’S gooD to have the knowleDge BehinD what you’re Doing. you might Be aBle to Do it all praCtiCally But you neeD to unDerStanD why you’re Doing it.”Scott Amor Co-winner of the Level 3 Poultry Industry Trainee of the Year 2011

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Certificates Achieved includes National Certificates, National Diploma, Limited Credit Programmes and Supplementary Credit Programmes. Completion rate is calculated by training programmes completing against finished training programmes (either completed or non-Completed).

Trainees by Level 1 2 3 4 5

Pest Management – – 537 – –

Pork – 31 33 23 –

Poultry – 101 46 29 –

Rural Servicing – 179 197 4 4

Trainees By Age 24 & Under 25 - 34 35 - 44 45+

Pest Management 119 124 116 178

Pork 12 27 26 22

Poultry 16 41 65 59

Rural Servicing 25 78 91 189

Number of Trainees 2010 › Pest Management 569 › Pork 44 › Poultry 197 › Rural Servicing 355

Number of Trainees 2011 › Pest Management 537 › Pork 87 › Poultry 181 › Rural Servicing 383

Certificates Achieved 2010 › Pest Management 229 › Pork 1 › Poultry 34 › Rural Servicing 37

Certificates Achieved 2011 › Pest Management 392 › Pork 28 › Poultry 138 › Rural Servicing 180

Completion Rate 2010

48%Completion Rate 2011

35%

Pest Management

Completion Rate 2010

8%Completion Rate 2011

47%

Pork

Completion Rate 2010

59%Completion Rate 2011

62%

Poultry

Completion Rate 2010

85%Completion Rate 2011

51%

Rural Servicing

Annual Report 2011 | 26

Percentage of Trainee’s who are

MA’s

2010 2011

Pork 16% 6%

Poultry 8% 6%

Rural Servicing 4% 1%

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BenefitS of mentoring

“We’re fattening a lot of lambs – there are about 25,000 of them and 8000 ewes and normally about 1400 head of cattle,” Cameron says. “I’ve lived on a farm since I was born. I always enjoyed it. I enjoy being outdoors working and chasing the sheep.”

Cameron has nearly finished his Modern Apprenticeship in Sheep Farming.

“When I first started training, at my last job, my training adviser said if you want to do a modern apprenticeship a bit further down the track we’ll get you into it.”

Previously studying via correspondence, Cameron has found being a modern apprentice a much more enjoyable and productive experience.

Modern apprenticeships are a work based education initiative, sponsored by the New Zealand Government, for 16-21 year olds in industry employment. The initiative allows trainees to learn while they earn and gain nationally recognised NZQA qualifications.

Participants in the scheme are treated to personalised support, training plans and goal-setting sessions with a modern apprenticeship coordinator. This extra mentoring support gives the scheme a significant advantage over other training options.

Cameron has really benefited from the enhanced support, mentoring and goal setting sessions he’s received as part of his modern apprenticeship.

“It’s really good to get regular visits, it’s definitely better than doing it by correspondence. My training adviser Rebecca comes out every three months,” he says. “We go over my goals, discuss what I’ve done and what I need to do to get the next things done.”

He believes having a modern apprenticeship looks great on your CV.

“It’s excellent to have something on paper, it shows other people what you know,” he says. “If you want to get somewhere you need to do some training – you can’t walk into a job anymore.”

It’s not only Cameron who is reaping the benefits of his increased skills and knowledge, he thinks his manager also benefits from his training because learning new things helps him understand what his boss is talking about.

“My boss definitely sees changes,” he says. “Landcorp push for training.”

Now nearly finished his modern apprenticeship, Cameron is looking to the future and planning his next steps in training.

“I’ll probably start on my next qualification and learn about budgeting and finances. My career goals are to manage a farm and one day own a farm.”

He recommends modern apprenticeships to other young people.

“It’s really good and I’ve benefited from it. It makes it easier to get through your training, understand things and do it properly the first time.”

CAMERON HOGG MODERN APPRENTICE LANDCORP, WILLANDA DOWNS

CaSe StuDy

Being a modern apprentice has helped Cameron Hogg get through his Level 3 AgITO qualifications. Cameron is a senior shepherd on Landcorp’s Willanda Downs and is really enjoying his job.

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“if you want to get Somewhere you neeD to Do Some training – you Can’t walk into a JoB anymore”Cameron Hogg

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water inDuStry training

Water Industry Training operates as a business unit within AgITO, to service the education and training needs of the water treatment, wastewater treatment, reticulation and irrigation sectors. We work closely with industry regulatory bodies such as Water NZ and the Water Industry Operators Group, health boards, district councils and contractors.

2011 saw several key projects underway for Water Industry Training.

Development of Reticulation/Utilities Sector Qualifications Pathway

Following consultation with industry to review existing qualifications, we worked with InfraTrain to develop a new qualifications pathway for the utilities sector which includes the areas of water reticulation and infrastructure works.

The pathway provides a clear framework and aligns the utilities sector qualifications. It makes it easier for councils and contractors to select the most appropriate qualification for their particular business and staffing needs. The pathway also provides organisations and their staff with the flexibility of transferring their existing skills across sectors more easily.

Qualification Development

Qualifications development in the water industry focused on Environmental Monitoring and Hydrology. These are closely linked with the national environmental monitoring standards being developed by the Local Authorities Monitoring Group and are seen as a vital component for standardisation within this industry.

These are now pending approval from NZQA along with the New Zealand Certificate in Irrigation (Level 4) which covers the operation, maintenance and management of irrigation systems to ensure water use is efficient and sustainable.

NCEA

As part of AgITO’s Language, Literacy and Numeracy (LLN) initiative we awarded 307 NCEA Level 1, 2 and 3 certificates to trainees in the water industry. We received very positive feedback from trainees and employers about the initiative and plan to offer the opportunity to achieve NCEA qualifications to all of our trainees, past and present.

The year Ahead

Our key focus over the coming year is to improve the assessment and learning process for trainees and a number of new initiatives are being trialled to achieve this. We will also be improving communications with trainees and employers, particularly in the area of setting milestones, so that trainees have defined dates for completing sections of their study and the qualification overall.

Work is underway developing a new delivery model for the National Certificate in Water Reticulation Level 3. We will be incorporating hands-on practical workshops to allow trainees to practice tasks such as pipe jointing and valve repacking etc in a safe environment, under the supervision of an industry expert.

The workshops will help ensure that graduates of the programme have not only the theoretical knowledge, but also the practical skills vital for water reticulation.

We are working with an iPAD App developer to create formative assessments that can be used as part of block courses. This will allow trainees to be assessed electronically. The assessment process will be faster, accelerating trainee’s progress through their qualifications.

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On the technology front we’re also introducing electronic training agreements (E-TAGS) and will be administering the Adult Literacy and Numeracy Tool (ALNAT) online, improving assessment quality and reducing administration costs. This will also enable trainees to receive instant feedback on their assessment results.

“my moDern apprentiCeShip haS helpeD me unDerStanD where our ContraCtorS are Coming from”Gabrielle Ranford Timaru District Council

Annual Report 2011 | 30

Certificates Achieved includes National Certificates, National Diploma, Limited Credit Programmes and Supplementary Credit Programmes. Completion rate is calculated by training programmes completing against finished training programmes (either completed or non-Completed).

Number of Trainees 2010

815Number of Trainees 2011

1,075

Credits Achieved 2010

27,974Credits Achieved 2011

29,357

Completion Rate 2010

40%

Completion Rate 2011

78%

Modern Apprentices 2010 2011

Percentage trainees who are MA’s 6% 5%

Certificates Achieved 2010

100

Certificates Achieved 2011

566

Trainess by Age

24 and under

25-34

35-44

45+

Trainess Level

Level 1

Level 2

Level 3

Level 4

Level 5

6%

19%

26%

50%

31%

1%

28%

22%

18%

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CaSe StuDywater inDuStry training iS key

Sean’s civil engineering experience includes design and construction with local authorities, consultants and contractors. Twenty of his thirty years in the business have been in the water industry in New Zealand, Australia and the United Kingdom – experience that Annie Yeates, Water Industry Training manager, has found invaluable.

“Sean’s expertise, passion and eye for detail, especially in the area of health and safety have been of huge assistance to us over various reticulation projects,” Annie says.

During the time he has worked with Water Industry Training Sean has held a number of vital roles.

“I’ve been a member of panels to review the reticulation Level 3 qualification and develop recognition of current competency resources and assessment materials,” he says. “More recently I’ve been appointed internal moderator for the reticulation qualifications.”

Sean is currently moderating and editing assessment materials for the new version of the National Certificate in Water Reticulation (Level 3), a job that includes checking for technical accuracy and health, safety and quality compliance. It has been a challenge he’s enjoyed.

“One of the major challenges with the water reticulation qualifications is trying to make a single qualification appropriate for companies of all sizes and geographical locations,” he says. “Their work might range from 24/7 reactive maintenance works to larger planned capital water main installations, whether publically or privately owned.

“Whilst Ministry of Health requirements are consistent across the nation, different local authorities have different standards and specifications for their infrastructure including compliance issues in areas like traffic management, RMA consent conditions, working near or under trees, and road and footpath surface reinstatement standards.

“The recent qualification review and pathway structure developed in conjunction with InfraTrain New Zealand has mapped out a qualification structure which is more flexible and splits into different strands so that the qualification meets stakeholder requirements.”

Sean says local authorities are now including the reticulation qualifications in their contractor selection processes.

“It benefits employers because they are meeting the ‘technical skills’ requirements for contracts. Trained employees are more likely to get the job done right first time without the unnecessary cost of rework.

“In my view, trainees also recognise the value of having qualifications, including that they improve job security, place them in a better position for promotion and, in some cases, increased remuneration. “

He has found being involved in training in the industry over the last ten years a rewarding experience.

“My association with Water Industry Training enables me to meet with trainees, employers, consultants, contractors, local authorities and to work with a great support team in Wellington,” he says. “I continue to enjoy working in the water industry.”

SEAN McHENRy CHARTERED CIVIL ENGINEER ASSESSOR AND MODERATOR

Sean McHenry, a chartered civil engineer with 30 years’ experience, says staff training is key for the water industry because it helps employers meet the technical skills requirements of contracts. Sean became involved with training in the industry a decade ago, when the National Certificate in Water Reticulation (Level 3) was rolled out.

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“training BenefitS employerS BeCauSe they are meeting the ‘teChniCal SkillS’ requirementS for ContraCtS”Sean McHenry

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agriCulture ServiCeS limiteD

Agriculture Services Ltd (ASL) is a wholly owned subsidiary of AgITO. The focus of ASL within the group is to:

› Operate as a commercial business undertaking consultancy, business development and project management assignments. In New Zealand our business activities predominantly support and build on the strategic objectives and industry leadership platforms of AgITO.

› Explore and develop international business opportunities that focus on developing human capital in primary industry, using both capacity-building frameworks and formal vocational training solutions and manage these at “arms length” from the ITO.

› Create commercial returns from business activities that can be reinvested in New Zealand for the benefit of the New Zealand agricultural industry and farmers.

During 2011 ASL has invested profits into two significant industry good projects in accordance with our objectives. These investments have reduced profits during the year, however both projects are viewed as important development areas for our sector targeting long term gains. These projects are:

Agriculture Human Resource Project

ASL has developed a diagnostic and reporting system to help farmers identify areas where they can improve the management of their staff. This new innovation has been piloted with several farmer groups during 2011 and it is presently being developed as an on-line software package to work alongside the DairyNZ “PeopleSmart” website. This is a collaborative project with DairyNZ and Investors in People New Zealand with

the overall goal being to improve the management of human resources across the sector.

Professional Land Manager Association

Highly skilled and competent land managers are vital to the growth and success of New Zealand’s primary industries and ASL is working with DairyNZ and members of the Primary Industry Capability Alliance (PICA) to develop a Professional Land Managers’ Association (PLMA). The PLMA initiative is about raising the profile of land management as a profession and providing a framework to develop and recognise competence. At its core will be the ongoing development of skills, knowledge and experience and the establishment of a network of land management professionals throughout New Zealand.

The Association will provide a platform where professional land managers will be able to demonstrate mastery of a highly complex body of knowledge and will commit to a set of common standards and a code of ethics. With the background work completed in 2011, the focus will shift to an implementation phase in 2012.

An Advisory Board of leading farmers in the target market is currently being assembled to guide the development of the Association over the coming 12-18 months.

ASL is also engaged in a wide range of other projects both in New Zealand and in developing countries.

Economic Returns from Training (RVA Project)

ASL has continued to develop its thinking and project work associated with productivity projects and the “value add” of vocational training. During 2011 further

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studies have been completed in the primary industry and hospitality sectors. Study results consolidate the view that industry training is most successful when sound training delivery is backed up by sound support and mentoring systems within the business and where management practices and training is linked to strategic objectives and KPIs.

GrowSafe

ASL manages the national database for GrowSafe certification on behalf of the New Zealand Agrichemical Education Trust (NZAET). During 2011, 5750 GrowSafe certificates were recorded and issued. This was a similar volume to that processed in 2010.

FarmSafe

ASL manages the AgITO’s interests in the FarmSafe Consortium. The FarmSafe Consortium is a joint venture between AgITO, Telford (a Division of Lincoln University) and Agriculture New Zealand (a Private Training Provider owned by PGG Wrightson Ltd). FarmSafe is at the forefront of farm safety training and rural safety initiatives in New Zealand and delivers a suite of high quality training programmes that target safety in rural workplaces.

China

ASL has continued its work with Fonterra during 2011 to provide the people development processes to support the farming business in China. This work has involved development of Standard Operating Procedures across the spectrum of farming tasks and the delivery of a “train the trainer” programme for supervisors and managers to support “on-job” training delivery.

Chile

ASL is working on several projects in Chile in the red meat sector. The project work is being funded by the Chilean Government and involves the piloting of New Zealand style industry training solutions for both commercial sized farms as well as the small subsistence farmer market. Industry training is not well developed in the Chilean agriculture sector and these pilot projects are part of a wider business strategy to develop more expansive business opportunities in Chile.

Fiji

ASL continue to work with Goodman Fielder International, Nausori, Fiji, to deliver the National Certificate in Poultry Production (Level 2) to their staff and growers. The programme has now been running for five years and is a mix of on-job practical and off-job theory based units that are delivered in-house by trained trainers/assessors. The programme is moderated by AgITO under licence by NZQA and New Zealand National Certificates are awarded to successful graduates.

Malaysia

ASL delivered a vocational training programme for Ministry of Agriculture advisers operating in the dairy sector. This programme was delivered for the National Agriculture Training Council (NATC), a body with ITO type responsibilities for human capability development across the agriculture sector. An on-going business relationship with NATC will be explored during 2012 to help develop their capacity to deliver more effective vocational training solutions to the Malaysian dairy market.

Future

2012 will see a particular emphasis on the Professional Land Manager and human resource projects that grow management capability across the sector and also contribute to the successful growth of the ITO core business. The international portfolio of the business will continue to be developed as opportunities are identified.

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leaDerShip anD CollaBoration

Our Strategic Business Development (SBD) team are focused on supporting the future of our industries. Developing, managing and maintaining initiatives which involve various skill based needs and enhance opportunities for training. Most of our work in this area is supported by external funding from government agencies, stakeholders and research bodies.

Iwi/Māori and Sustainable Land Managers project

SBD has reached the end of the Ministry of Agriculture and Fisheries (MAF) sponsored project to evaluate skills development and training for Māori land managers. The project sought to determine the best way to assist Māori land managers to look after their people, land and future.

What is developed must be flexible, easy to access and build on the vast amount of material and training that is already available. We identified that a repository of information needs to be established, that training packages must be tailored to meet specific practical needs and delivered by a network of advisers trusted within the Māori context.

If the recommendations are implemented then a single neutral Māori agency needs to be tasked and funded to deliver within a strong set of measurable targets.

AgITO worked very closely with the Federation of Māori Authorities (FoMA) throughout this project which has enabled a strong strategic partnership between our two entities.

Tainui Wahine tu mai, tu atu i nga maunga teitei (Tainui Women in Agribusiness)

The Tainui Wahine Tu Mai project sought to create a programme which would develop agribusiness management skills for Māori women trustees, and for women who may become trustees. The objectives were:

› For Tainui women to become competent and confident in the language and tools used in primary sector land management and governance within a

Māori context, and to communicate their perspective to others.

› To build a pilot programme for the development of resources and a programme that can be used across a variety of trusts and people groups.

This project provides the opportunity to engage with and up skill a sector of our society that has traditionally lacked access to the level of training necessary to work within Māori land management and governance.

A training programme has been proposed, which is being piloted in 2012 and contains four one day long modules on Governance, Farm Management, Sustainable Land Management and Succession Planning.

The following entities supported this project.

› MAF Sustainable Farming Fund - primary funding source and key sponsor

› DairyNZ – supplementary funding

› Beef + Lamb NZ – supplementary funding

› Te Puni Kōkiri – supplementary funding

› FoMA – in kind support (financial management)

› AgITO – in kind support (project management)

Environmental Scan

AgITO must be knowledgeable about and ready for future trends in our industries. We do this through two channels, the Environmental Scan and Futures Research.

The Environmental Scan looks at each of the industries AgITO is responsible for, captures what is happening now and alerts us to what we should be doing for the next 1-5 years. A PESTE (political, economic, socio-

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cultural, technological and environmental) analysis is used to understand the key trends we must be aware of. This Environmental Scan was used in 2011 to inform our product and qualification development, along with our strategic decision making.

In 2012, we will invite our key industry partners to participate and comment on the scan. This will give it additional depth and ensure that we can use the scan as evidence in NZQA and TEC submissions.

Futures Research

Futures Research is a process that looks at overarching trends that will impact on our future in the next 5 – 20 years. Trends are assessed in terms of how they will impact on New Zealand and on our agriculture, water, and education sectors. AgITO has used this tool for the past three years, and has identified the following trends that directly impact how we must shape ourselves as a business:

› Water is becoming a commodity that must be protected

› Good land management is becoming a prerequisite for trade

› Technology development is leading toward an informal, learner-driven approach to education

› The face of the rural workforce is changing

› Global competition is fierce in terms of mass production – New Zealand needs to continue to research and develop into both niche and mass production in order to keep up.

Knowledge Management

AgITO is required to consult with a variety of stakeholders on a regular basis and as a result the

information we collect is necessarily diverse. We believe we can develop our leadership role in areas relative to knowledge and information management, including dissemination, to the benefit of the agriculture industry.

The Knowledge Management Project consists of several parts including assessing intra-organisational information storage, establishing a research committee and assessing the information management role AgITO can play in the broader agriculture sector. It aims to streamline the accessibility and flow of relevant information within AgITO, between interested parties and in the agriculture sector as a whole.

The Research Committee component will help ensure that AgITO asks the right questions at the right time and of the right people to benefit our industries, trainees and the broader sector as a whole.

“moSt of my mateS at my Stage of life have Done training. with agito you’re never to late to have a CraCk at it. ”Hemi Ramsay Shepherd

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engagement with māori

Our People – Oku Iwi He Mana Ohooho

Our Land – Oku Whenua He Mana Takatu

Our Future – Whakamaua ki a Tina

AgITO continues to work closely with various agencies, Māori farming entities and representative groups to raise our awareness of what Māori want and need to improve their farming performance.

In the year ahead we seek to lift the level of our engagement by developing training solutions that recognise the Māori dynamic around land ownership, kaitiakitanga, history and participation in the economic growth of Aotearoa.

Ahuwhenua Trophy BNZ Māori Excellence in Farming Awards

AgITO is a supporter of the Ahuwhenua Trophy BNZ Māori Excellence in Farming Awards. The awards acknowledge and celebrate business excellence amongst Māori in New Zealand farming.

In the 2011 competition year we again provided independent judges for the first round judging process. As a bronze sponsor we continued to build sustainable relationships with Māori farming entities and allied representative organisations.

The Waipapa Trust were the winners of the 2011 Ahuwhenua Trophy for Excellence in Sheep and Beef farming – they also won the Dairy farming competition in 2010, a rare achievement for any Trust or farming enterprise. AgITO has a strong on-going training relationship with the Waipapa Trust.

In 2012 in recognition of the additional in-kind support provided by AgITO our sponsorship has been elevated to silver level.

The young Māori Trainee/Cadet of the year Award

The introduction of this award was announced by Minister Sharples at the Ahuwhenua Trophy Awards event in June 2011 for the 2012 dairy competition. AgITO is managing the Young Trainee competition in collaboration with the Māori Trustee and his officials and the Ministry of Māori Development (Te Puni Kōkiri). The base funding for this new award has been provided by the Māori Soldiers Fund administered by the Māori Trustee.

Māori Strategic Services Unit

In 2011 AgITO reassessed its on-going relationships with Māori in farming and decided to form the Māori Strategic Services Unit (MSSU). Through the establishment of this unit we aim to re-engage with key Iwi farming organisations and better deliver actual training outcomes via training agreements with Māori enterprises . We will also form joint venture’s with key Māori representative organisations such as the Federation of Māori Authorities and key Māori training and educational institutes, groups and individuals. The unit will also support other industry groups such as DairyNZ and Beef + Lamb NZ to access Māori in farming and provide advice to key Government agencies.

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Waipapa Station Manager, Denys Gayton, Chairman, Dawson Haa with His Excellency the Hon. Sir Anand Satyanand, holding the Ahuwhenua Trophy, Hon. Bill English and Minister of Māori Affairs, Hon. Doctor Pita Sharples

Annual Report 2011 | 38

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Setting StanDarDSQualifications, Moderation and Policy

Our quality and policy team fulfil the standard setting body responsibilities of AgITO. These include working with industry to set skill standards, developing national qualifications and assuring the quality of teaching and assessment in relation to those skill standards and qualifications. The team also interacts with government agencies on vocational training and education policy matters.

AgITO’s performance rated top notch by NZQA

In 2011 the New Zealand Qualifications Authority (NZQA) rated AgITO as a top performing industry training organisation in an External Evaluation and Review (EER).

We received an ‘Excellent’ rating in all six areas reviewed, the overall outcome of the evaluation being that NZQA is highly confident in AgITO’s self-assessment and performance. AgITO is the first industry training organisation to be rated ‘Excellent’ in every category.

The review was conducted under a new evaluative model of quality assurance which changes the focus of quality from a traditional audit approach (inputs and processes), to an evaluative approach focussed on the valued outcomes of tertiary education.

The review confirms that we continue to add value and understand the needs of our industry and government stakeholders. Quality control is embedded in our organisation and we continually improve in all areas of our business as we need to.

The review verified that the training arranged by AgITO is effective and that the ITO undertakes quality assessment that meets best practice standards. It also confirmed the capability of AgITO’s governance and management in supporting the organisation to do the best job it can.

We are proud to have achieved this result.

AgExcel endorsement extended

We continue to build on the work established last year around the training quality mark – AgExcel. AgExcel is endorsed by industry partners DairyNZ and Beef + Lamb NZ and is led on behalf of industry by AgITO. It seeks to lift the bar on the quality of training in the industry, ensuring the best possible experience for participants.

In 2011 AgExcel endorsement was extended beyond training providers to include agricultural vehicle training tutors. To gain AgExcel endorsement tutors go through an evaluation process that looks at details of their experience. They’re also interviewed and observed teaching and assessing trainees.

A group of tutors were evaluated as part of a pilot programme in November and have been awarded AgExcel endorsement for the quality of their quad bike, tractor, motorcycle and light utility vehicle training.

These tutors have been recognised as having significant experience in using agricultural vehicles and teaching and assessing trainees in this subject. They also have excellent knowledge of the Department of Labour guidelines around quad bike use and general issues of on-farm safety in this area.

In 2012 AgExcel tutor endorsement will be extended to tutors of other agricultural programmes as well.

Furthermore, AgExcel is also planning to endorse good quality farmer trainers in 2012. Criteria for endorsement is being developed and will incorporate elements of good practice in training and employment.

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Extending AgExcel across the spectrum of provider, tutor and farmer trainer will ensure trainees gain the best quality skills and knowledge to arm them with a future in agriculture and employers can be confident their staff are receiving the best training.

For more information about AgExcel, please visit online www.agexcel.co.nz or email [email protected].

Mandatory Review of Qualifications

In 2008, NZQA embarked on a Targeted Review of Qualifications (TRoQ). The targeted review focusses on qualifications at Levels 1-6 on New Zealand’s ten level qualifications framework. The review was initiated in response to concerns raised by employers, employees and unions about the clarity and relevance of qualifications, in particular vocational qualifications.

As part of the TRoQ, the NZQA triggered the review of all agriculture qualifications on 1 December 2011. The initial Mandatory Review examines qualifications in groups to ensure they meet the overall needs of a particular sector. It also focuses on reducing the duplication of qualifications and ensuring the system is easy to understand, particularly for trainees and employers.

There are currently over 170 qualifications in the agriculture group which includes sectors such as dairy, beef, pork, equine, water, and poultry1. The review will reduce the number of qualifications and ensure they are aligned with the new rules for listing qualifications on the New Zealand Qualifications Framework (NZQF). These new rules include clear descriptions of what a graduate is expected to know and be able to do and of

1 A full list of the qualifications included in the Review can be found here: www.nzqa.govt.nz/studying-in-new-zealand/nzqf/reviews-of-qualifications/quals-review-schedule

the employment and further education pathways that will be open to them.

No qualifications will be retained as they currently exist – those that are found to be particularly well suited to their purpose, will be converted into the new rules and will become known as ‘New Zealand’ qualifications instead of ‘National’ qualifications.

During 2011, AgITO did a significant amount of preliminary work so that we would be in a strong position to ensure the review progresses smoothly and effectively. This work included identifying and engaging with stakeholders and industry representatives and gaining their agreement to actively participate in the review. Their engagement and participation is fundamental to the success of the review.

By June 2012, AgITO together with industry, tertiary education organisations, and other stakeholders must have collaboratively developed a national portfolio of agriculture qualifications. Implementation to convert the retained qualifications to the new rules will then commence and is likely to take up to two years.

“ageXCel enDorSement ConfirmS we offer the BeSt quality agriCulture training in the Country. traineeS Can Be ConfiDent we will Deliver them a learning eXperienCe that will Set them up for a Career in the agriCulture SeCtor”Diane Marshall Head of School, Eastern Institute of Technology

Training Providers Accredited AgExcel

13

Tutors Accredited with AgExcel

9

Annual Report 2011 | 40

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In 2011 Agriculture ITO publicly launched our new brand AgITO. The rebrand sought to build a platform for AgITO to establish a stronger public profile, particularly in the area of management level training. Our new brand was well received by our stakeholders and customers and a study completed in early 2012 by an independent research company found unprompted brand awareness of AgITO was the highest in many years.

AgITO had sites at the three regional field day events held in Whangarei, Palmerston North and Christchurch and also the National Fieldays at Mystery Creek in Hamilton. These events are a key opportunity to raise the profile of qualifications in agriculture and are well attended by local farming communities.

We were proud to continue our sponsorship of the New Zealand Dairy Industry Awards. The awards are a prestige event and encourage excellence in dairying, recognising dairy trainees, farm managers and sharemilker–equity partners in the key competition

categories. 10 of the 12 Dairy Trainee Regional winners had completed training with AgITO.

141 applications were received in 2011 for our popular Farming to Succeed programme. This free career development programme is only made available through the support of long time sponsors FIL New Zealand. Their generous contribution allows us to offer this week long course facilitated by Grant Taylor to 50 participants across the two North and South Island programmes.

In 2012 we look forward to providing more regular national communication with our customers through the introduction of a bi-monthly e-newsletter. Our website is a key source of information for people looking at training options and we will continue to enhance it, ensuring content is relevant and easy to access. Building awareness and understanding of our qualifications at Level 5 (agribusiness management) will be a key focus for the team in the coming months.

“i’m looking forwarD to repreSenting the Dairy inDuStry to young people Coming through, they are the future of the inDuStry”Ben Smith, Dairy Trainee of the Year 2011

promotion of training

Our marketing and communications team promote training and qualifications to people working in agriculture. They also manage the national delivery of AgITO’s events, sponsorships and corporate publications.

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Melissa Fogarty Auckland

Aleisha Butler Bay of Plenty

Brendon Morrison Otago

Abigail Vickers Canterbury

Jemma Lourie Central Plateau

Jason Walker Manawatu

Bruce Leslie Northland

Jason Patterson Southland

Samuel Humphries Taranaki

Darren Smith Waikato

Adam Boaz West Coast

Dairy trainee of the year regional winnerS

Ben Smith Dairy Trainee of the year

Jason and Lisa Suisted Sharemilker-Equity Farmers of the year

Jason Halford Farm Manager of the year

Dairy inDuStry awarD winnerS

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CaSe StuDywaikato Couple are farming to SuCCeeD

“It was so cool that we both got to go together,” Sara says. “We were really glad to be able come home and be on the same page”.

Farming to Succeed runs once a year in the North and South Islands. Over five days, participants go through a structured series of workshops, farm visits and discussion groups.

Participants work with course facilitator Grant Taylor and other leading agribusiness practitioners to explore the key ingredients required for the achievement of personal and business success. Only 25 people are accepted to each course.

Topics covered include career development, staged capital growth and asset management, goal setting and motivation, successful business partnerships, financial development, time management and managing stress.

They are both full of enthusiasm about their experience at the week long programme.

“I thought it was awesome,” Jared says. “Grant is an inspiring guy, his tips and dedication and the info he’s gathered together help so much.

“Our goals were planned out before we went. We want to become sharemilkers and move up, but we learned there are all these other things you can do to get to where you want to go – like investing.”

“There are so many ways to invest money to make money,” Sara agrees.

The pair came away so focused and motivated that they’ve since upgraded their goals.

“Grant talks about the top ten percent and that’s where

we want to get to,” Jared says. “Anything is possible if you go for it. We met so many different people and found there’s always a way to get to your goal – it’s not always a straight line.”

Farming to Succeed doesn’t just focus on one farming sector, a fact that Sara enjoyed.

“A really great part of the course is that we got to see what happens beyond the farm gates, like at the meatworks and a Fonterra factory. It was a real eye opener,” she says. “We could be chicken farmers, we don’t just have to be dairy cow farmers.

“We visited different farms and saw other people in the industry who’ve made it. They started from nothing just like us – it was inspirational to hear them talk. Learning from those people is really beneficial.”

“I’d definitely recommend the course,” Jared says. “It has opened my eyes. It’s been a massive turning point in my life and I 100% recommend that people go. Anyone with a real dedication to go farming and move up in their career should apply.”

JARED CRAWFORD & SARA PRESTON

AgITO’s North Island Farming to Succeed programme sponsored by FIL New Zealand had a unique pair of attendees this year. Farming couple Jared Crawford and Sara Preston were both accepted to attend the life changing career development programme.

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“it haS openeD my eyeS. it’S Been a maSSive turning point in my life anD i 100% reCommenD that people go.”Jared Crawford

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ourpeople

Our people in the field support our clients. Our people in our Wellington office and Service Centre support our field people to deliver to our clients.

AgITO’s people strategy is based on the following principles:

› Implementing best HR practice

› Recruiting the right people

› On-boarding effectively

› Developing our people

› Engaging our people

Recruiting and On-Boarding Our People

We are in the process of implementing an on-line recruitment system that will provide an improved applicant experience and capture expressed interest enabling us to create a talent pool of people interested in working at AgITO. In addition, the way we welcome our people has changed with the use of a Welcome Pack that provides new employees with useful information about AgITO before they begin with us.

The way we induct our new employees has a great impact on the time it takes for them to become productive in their new role, effectively contribute to our organisation, provide great service to our customers and become engaged. A new modular-based induction was introduced this year whereby our new employees work through modules on various subjects with their manager and peers during their first three months, supported with attendance at a two-day AgITO Introduction at our Wellington office. These modules are currently being reviewed to streamline them and make sure they are useful for our people.

Managing our Talent

At our annual staff conference we launched our in-house Leadership Development Programme – Onwards and Upwards, aimed at our current and future leaders. Onwards and Upwards is designed to help an individual identify their own strengths and opportunities for leadership development; improve their self-awareness; improve their leadership skills and knowledge; learn how to partner with others to help with leadership development and contribute to the success of our organisation. Opportunities will be given to participants to put their learning into practice between workshops.

Our Senior Leadership Team is so committed to this Leadership Development Programme and developing their own leadership skills, that they too are going through the Onwards and Upwards Programme. Their first workshop was in December 2011. By going through the programme themselves, not only do they develop as leaders, they can better understand and support participants as they begin their leadership journey. Our first group of participants from the wider organisation begin their leadership development in February 2012.

Employee Engagement

Employee engagement is the level of ‘connectedness’ employees feel towards their organisation and their willingness to expend discretionary effort to ensure the organisation reaches its goals. Research (and common sense) tells us that the more engaged our people, the greater the positive impacts on our business including:

› Better employee retention

› Improved productivity

› Greater customer satisfaction

› Improved financial performance.

To be a successful organisation, rather than people just doing the job, we need people who seek to solve problems, take the initiative and help colleagues and customers where needed. As employee engagement is critical to AgITO’s success, we measure our employee engagement annually using the JRA Best Workplace Survey.

Our people told us in our 2011 employee engagement survey that they needed more effective communication and felt teams could work more effectively as one team. We followed up with team workshops in which

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team action plans were developed. Our Senior Leadership Team was included and they are developing initiatives to address the identified key priorities of communication and developing leadership.

Health & Safety

We are in the process of developing a structured Wellness Programme to improve the health and wellbeing of our people with the expectation of raising levels of employee engagement and commitment to AgITO. Wellness initiatives being explored include Health and Functional Age Checks and contribution to and participation in sports events.

Annual Report 2011 | 46

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finanCial reSultS Commentary

AgITO is a not for profit organisation and these financial statements represent the financial performance of AgITO (the ITO), its wholly owned subsidiary Agriculture Services Ltd (ASL) and the share of profit from the FarmSafe joint venture.

Training activities are reflected in Standard Training Measure (STM) revenue and trainee fee income and are the key drivers for revenue in the ITO. These activities are supported by core staffing and provider delivery of training.

Total comprehensive income for the year attributable to the ITO increased by $0.603 million between 2010 and 2011. Total surplus for the year was $1.171 million (4.6%) and operating surplus (which excludes depreciation, interest and joint venture income) for the year was $1.15 million or (4.9%).

RevenueSTM revenue was 64% of total revenue for the year compared to 72% in 2010. Changes to the way TEC funded training resulted in a higher number of trainees required to achieve the same amount of funding. The outcome for AgITO was 12,921 trainees earning of average $1,162 per trainee compared to last year’s 12,033 trainees earning on average $1,485 per trainee. Essentially it’s more work for less money. Overall STM revenue decreased by $2.86 million (16%).

Included in government revenue is funding for the Language Literacy and Numeracy (LLN) project of $2.055 million. AgITO progressed over 4,000 people through the LLN programme and successfully embedded LLN philosophies into Level 2 and Level 3 programmes. This is a key achievement for both AgITO and for government as we work to strengthen LLN skills in our industries.

Trainee fee income rose by 38% from $1.72 million in 2010 to $2.378 million in 2011. This was the result of two things: firstly taking back the fee collection from providers to the ITO and secondly implementing a new payments system along with much tighter controls around fee collection and debtor follow up.

TEC set a target of 30% industry cash contribution by 2013. This is the ratio of industry grant and trainee fee income to government income. In 2011 AgITO achieved 26% compared to 22% in 2010 and we are well on track to achieve our target of 30% by 2013.

ExpenditurePeople costs decreased by $0.792 million (7.5%) from 2010. Much of this decrease was in contractor and consultancy costs ($0.597 million), with total salaries remaining fairly static. Salary costs were expected to remain static as even though we earned less STM revenue we were still required to service more trainees to achieve our TEC targets. Under these circumstances this is a very satisfactory result.

We made some good savings in operating costs with an overall reduction of $0.536 million (8%). Travel costs decreased by $0.352 million, and promotions and marketing costs decreased by $0.56 million. This was partially offset by a modest increase in administration costs largely related to ASL consultancy activity.

Annual Report 2011 | 48

STM/MA revenue 64%

Government project revenue

10%

Industry grants 7%

Trainee fees 10%

Other 9%

Total Revenue

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49 | Annual Report 2011

In marketing there was a clear focus on brand awareness with the launch of the new brand. Advertising costs were reduced by $0.206 million as we carried out analysis of where we gained the best impact and became more discerning in how we spent our advertising dollars. Market research activity was brought in house as we developed our team’s expertise resulting in a saving of $0.096 million and expenditure on events was reduced by $0.075 million. We still managed to have the most successful Mystery Creek Fieldays to date in terms of leads generated and were well represented at Ahuwhenua, NZ Dairy Industry Awards, Farming to Succeed along with Skills Days and Agriawards.

Training costs are the costs of providers delivering off job training to our trainees. We achieved a reduction of $0.527 million in 2011. We funded the delivery of 922 courses and introduced a higher level of on job training and assessment for lower level courses. We updated provider contracts to better reflect our requirements and this also contributed to the savings in costs.

Balance SheetWorking capital increased by 16.7% to $7.148 million and our working capital ratio is now 3.79:1 compared to 3.39:1 in 2010.

TEC guidelines suggest cash reserves should be between 4 and 6 months of total expenditure. The ITO is currently 4.5 months compared to 3 months last year. The Directors consider this a healthy position to be in.

Fixed asset purchases totalled $0.592 million with approximately half of this relating to Industry Training Register (ITR) and much of the remainder on rolling replacement of hardware, e.g. laptops.

Summary Financial StatementsA summary of the ITO Group’s (“the Group”) and the ITO’s (“the Organisation”) audited financial statements for the year needed 31 December 2011 which were authorised for issue on 4 May 2012 is shown on pages 51 and 52.

The summary financial statements have been prepared in accordance with FRS 43 – Summary Financial Statements.

The financial report has been drawn from, and is consistent with, the full financial statements (prepared in accordance with NZ IFRS as appropriate for public benefit entities) dated 4 May 2012, which have been audited and on which an unmodified opinion has been issued. Therefore the summary financial statements cannot be expected to provide as complete an understanding as provided by the full financial statements.

The full financial statements are prepared in New Zealand dollars. The Group has made an explicit and unreserved statement of compliance with NZ IFRS in its full financial statements.

A copy of the full financial statements can be obtained from the registered office of AgITO, 180 Taranaki Street, Wellington.

The Auditor has examined the summary financial statements for consistency with the audited financial statements and has issued an unmodified opinion.

2010 2011

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

Expenditure categories

Salaries & Staff costs

Contractors &

Consultants

Travel Marketing Administration/ Occupancy/

Comms

Training Depreciation Other

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STATEMENTS OF COMPREHENSIVE INCOME For the year ended 31 December 2011

Agriculture ITO Group Agriculture ITO

2011$000

2010$000

2011$000

2010$000

INCOME

Government Revenue 17,474 18,681 17,474 18,681

Industry Revenue 1,732 1,805 1,732 1,805

Interest 384 337 323 288

Trainee Fees and Other Income 4,047 3,836 3,470 3,124

Dividend From Associate – – 140 317

TOTAL INCOME 23,637 24,659 23,139 24,215

EXPENDITURE

People Costs 9,758 10,550 9,648 10,486

Operating Costs 6,174 6,710 5,759 6,639

Training Costs 6,087 6,614 6,087 6,422

Depreciation/Amortisation 573 517 556 507

Merger costs 84 – 84 –

TOTAL EXPENSES 22,676 24,391 22,134 24,054

Share of Profit from Associate 210 300 – –

SURPLUS ATTRIBUTABLE TO THE INCORPORATED SOCIETy 1,171 568 1,005 161

OTHER COMPREHENSIVE INCOME

Other Comprehensive Income – – – –

TOTAL COMPREHENSIVE INCOME FOR THE yEAR ATTRIBUTABLE TO THE INCORPORATED SOCIETy

1,171 568 1,005 161

STATEMENTS OF CASH FLOWS For the year ended 31 December 2011

Net Cash Flows from Operating Activities 1,367 1,356 1,319 923

Net Cash Flows from Investing Activities (564) (2,561) (515) (2,076)

Net increase/(decrease) in cash held 803 (1,205) 804 (1,153)

Cash at beginning of the year 1,130 2,335 807 1,960

CASH AT END OF THE yEAR 1,933 1,130 1,611 807

STATEMENTS OF CHANGES IN EQUITy For the year ended 31 December 2011

Net Equity Brought Forward – Retained Earnings 7,858 7,290 6,327 6,166

Add: Comprehensive Income – Surplus 1,171 568 1,005 161

NET EQUITy CARRIED FORWARD – RETAINED EARNINGS 9,029 7,858 7,332 6,327

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The Directors have authorised these financial statements for issue. For, and on behalf of, the National Board:

Signed: ______________________ Signed: ______________________ Date: 4 May 2012 Date: 4 May 2012

STATEMENTS OF FINANCIAL POSITIONAs at 31 December 2011

Agriculture ITO Group Agriculture ITO

2011$000

2010$000

2011$000

2010$000

ASSETS

Current assets

Cash and Cash Equivalents 1,933 1,130 1,611 807

Term Deposit 6,550 6,251 5,500 5,251

Trade and Other Receivables 1,199 1,280 1,051 1,122

Inventory 26 22 26 22

Total Current assets 9,708 8,683 8,188 7,202

Non-Current assets

Intangible Assets 1,073 1,002 974 938

Investment in Associate 270 200 – –

Property, Plant and Equipment 538 533 527 530

Total Non-Current assets 1,881 1,735 1,501 1,468

TOTAL ASSETS 11,589 10,418 9,689 8,670

LIABILITIES

Current liabilities

Trade and Other Payables 1,635 1,807 1,497 1,660

Employee Entitlements 696 701 633 648

GST Payable 229 52 227 35

Total Current liabilities 2,560 2,560 2,357 2,343

TOTAL LIABILITIES 2,560 2,560 2,357 2,343

NET ASSETS 9,029 7,858 7,332 6,327

EQUITy

Retained Earnings 9,029 7,858 7,332 6,327

TOTAL EQUITy 9,029 7,858 7,332 6,327

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1 Tan Huynh2 Staz Davey3 Alastair McLellan4 Ruth McLennan5 Melissa Momberg6 Julie Minkley7 Charlotte Steel8 Tony Mordaunt9 Mel Weston10 Jewel Matheson11 Fiona Beardslea12 Andrew Shepherd13 Catriona Petrie14 Kathleen Perry15 Leah Kendall16 Lucie Whittaker17 Rose Anderson

18 Nicky Williamson19 Judi Fleck20 Sarah Searle21 Rylin Devi22 Michelle Hansen23 Erena Tampeau24 Anna Yarndley25 Michele Kuriger26 Dani Donovan27 Lucy Haberfield28 Robyn Patterson29 Pauline Aitken30 Karen Wightman31 Vinod Pratap32 Tracey Shepherd33 Emily Byrne34 Dorothy Opai

35 Linda Wilkinson36 Nigel Campbell37 Wendy Fisher38 Shona Wapp39 Margo Robertson40 Annie Sparrow41 Kerryn Bloomfield42 Kerry Aspin43 Kathryn van den Beuken44 Rachel Boys45 Lizzy Wilding46 Denise Williams47 Nela Parbhu48 Tania Matheson49 Sharon Orr50 Paul Bau51 Vicki Martel

52 Peter McGregor53 Brendan Maxwell54 Karen Thomson55 Amy Peacock56 Robyn McLaughlin57 Doug MacCredie58 Nicky Duncan59 Pippa Dixon60 Rebecca Dawkins61 Kellie Weatherston62 Maryse Dinan63 Claire Naeraa-Spiers64 Barbara Walker65 Bev Jackson66 Carey Blue67 Sherryn Kelly68 Lisa Dunn

69 Sarah Barr70 Marzanne Krogmann71 Rebecca Fox72 Emma Collins73 Martyn Simpson74 Russell Stuck75 Justin Blakie76 Matt Cooley77 Eoin Donoghue78 Lyndon Elliot79 Rachael Handy80 Kylie MacDonald81 Jenny Vandenberg82 Kate Alexander83 Marianne Farrell84 Kara Harvey85 Paul Cording

86 Kevin Scannell87 Mike Styles88 Graeme Couper89 Wendy Stirling90 Annie Yeates91 Pete Gilbert92 Nigel Hesford93 John Bourke94 George Schuler95 Andrew Donohue96 Eleri Willams97 Sue Hall98 Richard Laurence99 Yvette Palmer100 Fred Hardy101 Andrew Karl102 Michelle Taylor

103 Heleen Smith104 Frances Wilson105 Tanya Ingram106 Kevin Bryant107 Toni Collins108 Stephanie Robertson109 Andrew Roche110 Sarah Prior111 Claire Chapman112 David Check113 Adrian Osborne

1 2 3 4 5 6 7 8 9 10 11 12 13 14

15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 5150

52 53 54 55 56 57 58 59 60 61 62 63 6564 6866 67 69 70 71 72

73 74 75 76 77 78 79 80 81 82 83 84 8685 8987 88 90 91 92 93

94 95 96 97 98 99 100 101 102 103 104 105 107106 110108 109 111 112 113

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organiSational information

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Richard Lawrence – Executive OfficerJudi Fleck – Service Centre ManagerKate Alexander – Territory ManagerGeorge Schuler – Territory Manager

Jenny Vandenberg – Territory Manager

Kevin Scannell – Territory Manager

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Michelle Hansen – EA to Chief Executive

Kathryn van den Beuken – Key Account Manager

Doug Macredie – Key Account Manager

Sharon Orr – Key Account M

anager

Adrian O

sborn

e – Key Acc

ount Manager

Kylie M

acDonald –

Administ

ratio

n Support

Claire Chapman – National Field Manager

Mitasha M

urabi – Resource Coordinator

Toni Collins – Resource Designer

John Bourke – Product Development Adviser

Tony Mordaunt – Product Marketing Adviser

Tan Huynh – Production Manager Pastoral

Asharie Perera – Product Manager Corporate Key Accounts/Water IT

Paul Cording – Product Marketing Manager

Denise Williams – Implementation Adviser

Martyn S

impson – W

ater Industry Adviser

Rebecca Fox – Water Industry A

dviser

Annie Yeates – Water Industry Training

Manager

Nigel Hesford – Water Industry Adviser

Marzanne Krogm

ann – Water A

dministrator

Catriona Petrie – Q

ualifications Adm

inistrator

Ch

arlo

tte

Ste

el –

Bu

sin

ess

Dev

elo

pm

ent

Ad

vise

r

Ru

th M

cLen

nan

– B

usi

nes

s D

evel

op

men

t A

dvi

ser

Ere

na

Tam

pea

u –

HR

Ad

vise

r

Sar

ah P

rio

r –

HR

Ad

vise

r

Leah

Ken

dal

l –

HR

Man

ager

Rac

hel B

oys

– H

R/P

ayro

ll O

ffice

r

Pete

r M

acG

rego

r –

Str

ateg

ic R

elat

ions

hips

Man

ager

Fred

Har

dy

– B

usi

nes

s D

evel

op

men

t M

anag

er

Kevin Bryant Chief Executive

Service Centre

Yvette Palmer, Senior Administrator

Julie Minkley, Administrator

Linda Wilkinson, Administrator

Rylin Devi, Administrator

Sherryn Kelly, Administrator

Northland/Waikato

Sarah Searle, Training Adviser

Jewel Matheson, Training Adviser

Tania Matheson, Customer Relationship Adviser

Frances Wilson, Training Adviser

Anna Yarndley, Training Adviser

Maryse Dinan, Customer Relationship Adviser

Michele Kuriger, Training Adviser

Karen Wightman, Training Adviser

Kara Harvey, Customer Relationship Adviser

Eleri Williams, Training Adviser

Rose Anderson, Training Adviser

Barbara Walker, Customer Relationship Adviser

East Bay Central

Jennifer Mossman, Training Adviser

Andrew Karl, Training Adviser

Lisa Dunn, Customer Relationship Adviser

Lizzy Wilding, Training Adviser

Sue Hall, Training Adviser

Mel Weston, Customer Relationship Adviser

Pippa Dixon, Training Adviser

Amy Peacock, Training Adviser

Vicki Martel, Customer Relationship Adviser

Lower North Island

Michelle Taylor, Training Adviser

Bev Jackson, Training Adviser

Emma Collins, Customer Relationship Adviser

Marianne Farrell, Training Adviser

David Check, Training Adviser

Shona Wapp, Customer Relationship Adviser

Robyn Patterson, Training Adviser

Dani Donovan, Customer Relationship Adviser

Canterbury/West Coast/North Otago

Wendy Fisher, Training Adviser

Paul Bau,Training Adviser

Kerryn Bloomfield, Customer Relationship Adviser

Carey Blue, Training Adviser

Annie Sparrow, Training Adviser

Lucie Whittaker, Customer Relationship Adviser

Kathleen Perry, Training Adviser

Andrew Roche, Training Adviser

Kerry Aspin, Customer Relationship Adviser

Staz Davey, Training Adviser

Jock McKeown, Training Adviser

Rachael Handy, Customer Relationship Adviser

Southland

Russell Stuck, Training Adviser

Sarah Barr, Training Adviser

Kellie Weatherston, Customer Relationship Adviser

Wendy Stirling, Training Adviser

David Barton, Training Adviser

Adrienne Lamb, Training Adviser

Melissa Momberg, Customer Relationship Adviser

Pauline Aitken, Training Adviser

Rebecca Dawkins, Training Adviser

Danielle Stirling, Customer Relationship Adviser

Den

nis

Radf

ord

Gen

eral

Man

ager

Pr

oduc

t M

arke

tin

g

Bra

nd

P

rintr

oom

F

inance In

formation Systems Policy & Quality

Natio

nal Field

Key Accounts ASL

WaterIT

Annual Report 2011 | 54

Anna Douglas – Resource Writer

Nicki Williamson – EA, National Field

AgITO staff as at 31 December 2011

Page 58: AgITO - Adding value to our industries

www.agito.ac.nz | www.waterit.ac.nz


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