Table of ContentsLetter to the Minister................................................................................................................................3Glossary and acronyms............................................................................................................................6
Part One ............................................................................................................................................... 9Overview ............................................................................................................................................... 9
Introduction.......................................................................................................................................... 9Challenges facing the industry.............................................................................................................9About this report.................................................................................................................................10Summary of recommendations...........................................................................................................10
What is the current situation?................................................................................................................12Economic overview.............................................................................................................................12Regional overview..............................................................................................................................21Australia’s framework for skills and workforce development..............................................................26Workforce overview............................................................................................................................32Supply of skills to the industry............................................................................................................38
Future outlook (medium and longer term)..............................................................................................50Demand outlook for output, exports and employment.......................................................................50Supply and demand imbalances—occupational focus.........................................................................59Data limitations and implications........................................................................................................68
Implications for skills and workforce development.................................................................................71Factors impacting on demand for skills and labour.............................................................................71
Part Two ............................................................................................................................................. 81Attraction, retention, development and use of skilled workers.............................................................81
Introduction........................................................................................................................................ 81A coordinated approach into the future..............................................................................................82Attracting and retaining a skilled and capable workforce...................................................................84Demonstrating the value of skills and workforce development to employers.....................................98Ensuring industry-relevant, quality education and training..............................................................104Increasing the diversity of the food workforce..................................................................................108Conclusion........................................................................................................................................ 113
Appendix A:.............................................................................................. Industry production and growth........................................................................................................................................... 114
Developments in production and trade by commodity.....................................................................114Appendix B:..............................................................................................Supply and demand data tables
........................................................................................................................................... 125Appendix C:..............................................................Overview of food and beverage workforce initiatives
........................................................................................................................................... 146Appendix D: Reference group members...............................................................................................160
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Letter to the Minister
Dear MinisterOn behalf of the Australian Workforce and Productivity Agency (AWPA), I am pleased to present our Food and beverage workforce study. This report is part of AWPA’s work to ensure that Australia has the workforce it needs for the future.Australia’s food and beverage industry, encompassing agricultural production and food and beverage processing, employs more than half a million Australians and accounts for around four per cent of the nation’s gross domestic product. The industry also contributes significantly to Australia’s export income and rivals the metals and machinery and equipment sectors as the largest contributor to manufacturing output.The industry’s future depends in no small part on successfully selling to new customers in rapidly growing Asian markets. Australia is just one of many nations doing business in Asia and international competition for emerging food markets is fierce. If the Australian food industry is to reach the full potential for its success in these markets it needs a workforce with the skills, knowledge and capabilities to take advantage of the opportunities. Those skills include a higher level of training for advancing production techniques, and also a higher level of skills in leadership, management, mentoring, risk management and the ability to translate research and development into successful new products.Today, the food and beverage workforce has a low skills base compared with the average across all industries. A key challenge is to retain critical skills, to develop new skills to keep pace with technology, and to promote a culture of structured training and lifelong learning in the industry. Our report reflects close and useful consultation with representatives from industry, universities, vocational education and training bodies, unions and the industry skills council. I am grateful to the many stakeholders who invested their time and effort in this project and provided insights throughout the process. In particular, I would like to thank AWPA board member Dr John Edwards, who chaired the food and beverage workforce study, and the members of our reference group for their valuable assistance and guidance. I would also like to acknowledge the staff of the AWPA Secretariat who undertook the analysis of industry issues, stakeholder consultation, and the drafting of this report.I am confident that this report and its recommendations will provide a useful set of actions to take forward. Yours sincerely
Philip Bullock Chair Australian Workforce and Productivity Agency September 2013
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List of figures
Figure 1 Value chain for food in Australia, 2011–12............................................................................13Figure 2 Average annual productivity growth, by period....................................................................17Figure 3 Gross value added per hour worked.....................................................................................19Figure 4 Persons employed by state/territory in agriculture, and food and beverage
manufacturing......................................................................................................................24Figure 5 Median weekly earnings in main job (persons), for Agriculture, Forestry and Fishing,
Manufacturing, and All-Industries, August 2007 to August 2012 (latest available data).....33Figure 6 Age distribution of workers (percentage terms) in food-related sectors and
all-industries, 2012...............................................................................................................34Figure 7 Agrifood Certificate II and III commencements 2007 to 2012...............................................42Figure 8 Undergraduate commencements and completions by field of education and state, 2011....44Figure 9 Total food-related field of education undergraduate and postgraduate commencements,
2006–11................................................................................................................................46Figure 10 Australian agrifood production, 2007 and 2050....................................................................52Figure 11 Australian agrifood exports, 2007 and 2050.........................................................................53Figure 12 Beef and veal production....................................................................................................114Figure 13 Apparent meat consumption per person.............................................................................116Figure 14 Australian dairy exports......................................................................................................117Figure 15 Australian wheat production...............................................................................................118Figure 16 Australian coarse grain production.....................................................................................119Figure 17 Seasonal pattern of net trade in fresh and processed horticulture products.......................120Figure 18 Australian wheat-growing regions.......................................................................................123
List of tables
Table 2 Universities that offer Agriculture and Aquaculture degrees.................................................29Table 3 Universities that offer Food Science degrees........................................................................29Table 4 Comparison of qualification profile for the Agriculture and Fishing sector and all-industries,
2006 and 2011 (census data)...............................................................................................36Table 5 Comparison of qualification profile for the Food and Beverage Manufacturing sector and
all-industries, 2006 and 2011 (census data).........................................................................37Table 6 VET student commencements in food-related training packages.........................................38Table 7 VET student completions in food-related training packages.................................................39Table 8 Apprentice and trainee commencements in food-related training,
12 months ending September..............................................................................................40Table 9 Apprentice and trainee completions in food-related training packages,
12 months ending September..............................................................................................41Table 10 Occupation of VET students employed six months after training by field of education,
2007 to 2012........................................................................................................................43Table 11 VET students in further study or work six months after training by training package, 2012
Table 12 Higher education domestic commencements in fields of education directly related to food, 2011.....................................................................................................................................45
Table 13 Higher education domestic completions in fields of education directly related to food, 2011............................................................................................................................................. 46
Table 14 Student outcomes, Agriculture bachelor degree graduates, 2012........................................47Table 15 Replacement rates and projected total job openings to 2025 resulting from replacement
demand and employment growth.........................................................................................56Table 16 Balance between supply and demand of new qualifications for key occupations in 2025.. . .58Table 17 Key employment and skill shortage trends: Food workforce Manager and Professional
occupations..........................................................................................................................63Table 18 Key employment and skill shortage trends: Food workforce Technician and Trade
occupations..........................................................................................................................65Table 19 Top employing Labourer occupations: Agriculture and Fishing.............................................66Table 20 Top employing Labourer occupations: Food and Beverage Manufacturing...........................67Table 21 VET student enrolments by training package, 2011, by state and remoteness..................125Table 22 Employment in the Agriculture and Fishing industry..........................................................126Table 23 Employment in the Food and Beverage Manufacturing industry.........................................127Table 24 Occupational employment numbers, historical growth.......................................................128Table 25 Percentage of part-time employed in food-related sectors in the Agriculture and Fishing
industry and percentage point change between 2007 and 2012........................................129Table 26 Percentage of females in food-related sectors in the Agriculture and Fishing industry and
percentage point change between 2007 and 2012.............................................................131Table 27 Percentage of part-time employed in Food and Beverage Manufacturing and percentage
point change between 2007 and 2012...............................................................................132Table 28 Percentage of female employees in Food and Beverage Manufacturing industry and
percentage point change between 2007 and 2012.............................................................133Table 29 Census 2011, qualification profile of top 30 employing occupations in the Agriculture and
Fishing sectors....................................................................................................................134Table 30 Census 2011, qualification profile of top 30 employing occupations in the Food and
Beverage Manufacturing sectors........................................................................................136Table 31 Employment projections for food-related sectors within the Agriculture, Forestry and
Fishing industry..................................................................................................................138Table 32 Employment projections for food-related sectors within the Manufacturing industry.........139Table 33 Occupational employment projections................................................................................140Table 34 Projected change in number employed by food-related sectors, 2011–2025, AWPA scenarios
........................................................................................................................................... 142Table 35 Projected change in number employed by food workforce occupations, 2011–2025, AWPA
457 Visa Section 457 of the Migration Act 1958 (Commonwealth)
ABARES Australian Bureau of Agricultural and Resource Economics and Sciences
ABS Australian Bureau of Statistics
AFGC Australian Food and Grocery Council
AFI Australian Farm Institute
agricultural production
Those industry subdivisions involved with direct production, including growing or harvesting of food.
AgriFood Skills Australia
AgriFood Skills Australia is an Industry Skills Council. It covers the following five main sectors:
• rural and related industries (including agriculture, horticulture, conservation and land management, animal care and management)
• food, beverage and pharmaceutical processing• meat• seafood• racing (greyhound, thoroughbred and harness).
ANZSCO Australian and New Zealand Standard Classification of Occupations
ANZSIC Australian and New Zealand Standard Industrial Classification
AQF Australian Qualifications Framework
attraction and retention
Attraction—policies and practices of a workplace or sector that evoke interest or are attractive to potential employees.
Retention—policies and practices undertaken by the employer that increase the attractiveness of a workplace resulting in fewer employees leaving the business (lower turnover). Retention can also refer to strategies to retain workers within an industry sector, region or supply chain.
AWPA Australian Workforce and Productivity Agency
commodity In line with ABARES publications, commodity refers to an agricultural product that has been minimally or substantially transformed, such as refined sugar and meat.
CSOL Consolidated Skilled Occupation List
DAFF Department of Agriculture, Fisheries and Forestry
DEEWR Department of Education, Employment and Workplace Relations
DFAT Department of Foreign Affairs and Trade
DIISRTE Department of Industry, Innovation, Science, Research and Tertiary Education
EVAO Estimated value of agricultural output
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FoE field of education
food and beverage processing
Those industry subdivisions involved with transforming raw ingredients into value-added foods and beverages and other forms.
food supply chain
Consists of the production of agricultural and fisheries food materials and products, food and beverage processing and manufacturing, distribution, wholesaling and food and beverage retailing, food services, international trade (both exports and imports) and consumption.
food workforce
Those working in industry subdivisions that involve the direct production or processing of food and beverages.
GDP Gross domestic product
human capital
The knowledge, skills, competencies and attributes embodied in individuals that facilitate the creation of personal, social and economic wellbeing.
ISC Industry Skills Council
Eleven independent, not-for-profit Industry Skills Councils (ISCs) were established by the Australian Government Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE). These councils provide integrated industry intelligence and advice to government and enterprises on workforce development and skills needs; actively support the development, implementation and continuous improvement of high-quality training and workforce development products and services, including industry training packages; and play a central coordination role for application to the National Workforce Development Fund.
labour productivity
Labour productivity estimates are indexes of real GDP per hour worked. They indicate the volume of output produced per hour of labour expended in production. Labour productivity indexes reflect not only the contribution of labour to changes in product per labour unit, but are also influenced by the contribution of capital and other factors affecting production.
LLN Language, literacy and numeracy
NCVER National Centre for Vocational Education Research
NEST National Agribusiness Education, Skills and Labour Taskforce
NFF National Farmers’ Federation
NRAC National Rural Advisory Council
NWDF National Workforce Development Fund
PICSE Primary Industry Centre for Science Education
PIEF Primary Industries Education Foundation
productivity growth
When a nation achieves productivity growth, it is able to produce more goods and services from the same quantity of labour, capital, land, energy and other resources.
RD&E Research, development and extension. The research and development of new inventions and techniques. Extension refers to the process used to communicate the new research.
RDC Research and Development Corporation
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SME Small and medium enterprise
SOL Skilled Occupation List. The SOL determines which occupations are eligible for independent and family-sponsored skilled migration. The SOL is based on expert advice from AWPA to the Minister for Immigration and Citizenship and is updated annually on the Department of Immigration and Citizenship website. The list of occupations on the SOL reflects the Australian Government’s commitment to a skilled migration program that delivers high-value skills that will help to address Australia’s future skills needs.
SpOL AWPA’s Specialised Occupation List identifies high-value occupations for the purposes of determining where workforce planning attention is best directed. Occupations that meet two of the following three criteria are included on the SpOL: Long lead time: where skill acquisition requires extended learning and preparation over several years; High use: where there is a strong match between education/training and occupational outcome; and High risk: where potential disruption caused by undersupply is great, resulting in significant economic or community costs. In addition, high-quality information about the occupation must be available in order to assess the occupation against these criteria. The SpOL is updated annually and published on AWPA’s website.
TAFE Technical and Further Education
TFP Total factor productivity is the most comprehensive measure of productivity. It takes account of all inputs to production. Typically, the inputs are classified into capital (K), labour (L), energy (E), materials (M) and services (S), so this is referred to as the KLEMS approach to productivity measurement. In principle, all the output and input measures are adjusted for quality change. But this approach demands a lot of data, and estimates of total factor productivity are available for very few countries.
VET Vocational education and training
VETiS VET in Schools
WELL Workplace English Language and Literacy Program
workforce development
Workforce development refers to those policies and practices that support people to participate effectively in the workforce and to develop and apply skills in a workplace context. It concerns itself with issues such as recruitment and retention, job design and career development as well as skills formation.
workforce planning
Workforce planning is the process undertaken by an organisation or sector to identify the staffing needs required to achieve its objectives. This includes both a consideration of the numbers of workers and the skills required. This is often an early step in preparing a workforce development plan.
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Part One
Overview
IntroductionAustralia’s food and beverage industry, encompassing agricultural production and food and beverage processing, employs more than half a million Australians and accounts for around four per cent of the nation’s gross domestic product (GDP). The industry also contributes significantly to Australia’s export income, with exports valued at $30.5 billion in 2011–12 (representing 11.5 per cent of total merchandise trade).While total employment across the industry has fallen in recent decades, the value of production has continued to rise as productivity has improved. Productivity growth will need to be sustained if Australia is to take full advantage of the export opportunities opened by the growing global demand for food, particularly from the emerging middle classes in Asia. Australia needs a globally competitive and innovative agriculture and food processing (agrifood)sector. Much of its future growth depends on successfully selling to new customers in rapidly growing Asian markets. A highly skilled and adaptable workforce will be required to make the most of these opportunities. Increasing the skills and adaptability of the food industry workforce, which has relatively low skills compared to the workforce as a whole, will involve major changes in the attitudes and practices of the industry. Yet there is no single body responsible for setting the industry’s workforce development agenda, and assigning priorities among the multitude of separate programs and policies. The central finding of this Food and beverage workforce study is that responsibility for developing the industry workforce development agenda, much of which is outlined in this report, should be invested in a fully representative and authoritative body with the necessary mandate.
Challenges facing the industryThe agrifood industry is in a transition phase and the industry’s potential in the Asian century is far from assured. Australia is just one of many nations doing business in Asia, and international competition for emerging food markets is fierce. Stakeholders indicate that, in several sectors, Australian businesses do not have the supply chain capabilities to compete effectively in these emerging markets.The transition taking place is part of a broader transformation in the Australian economy, with a shift in emphasis from reliance on the resources sector to a renewed focus on advanced manufacturing and agriculture. While the transition will be difficult, it provides an optimistic outlook for the agrifood industry.A successful transition will require strong industry leadership, supported by appropriate government policies and programs, including skills and workforce development. Employers must become more outwardly focused.The food and beverage workforce has a relatively low skills profile, compared with the average across all-industries: within the agriculture and fishing workforce, just under 40 per cent of workers have completed a post-school qualification. Within food processing, the proportion is 45 per cent. While these figures have improved over the past five years, both remain significantly below the all-industries average of 62 per cent. The skill profile plays a critical role in determining the capacity of the food workforce to innovate and improve productivity, and to capitalise on export opportunities. If Australia is to make the most of the opportunities the Asian century has to offer, it is important to know what future demand might look like and to assess whether domestic capability exists to meet this demand. This means putting in place strategies to ensure Australian producers and processors have
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the skills, knowledge and capabilities to take advantage of opportunities. Key skills required include leadership, management, mentoring, risk management and the ability to translate research and development into business processes along the supply chain. It is apparent that a new approach to skills and workforce development is required, one that focuses on pathways across the supply chain. Also needed is increased involvement of the industry in education and training provision, including through a greater focus on work-integrated learning.
About this reportThis study identifies a range of trends and issues, and includes key messages that AWPA has received from the many stakeholders it engaged with.The agency has looked at what is and isn’t working and demonstrated its findings through case studies included in the report. AWPA has also looked at the wide range of suggestions and recommendations made by stakeholders in recent and current studies and inquiries, which highlight some key areas that need action. Many of these suggestions and recommendations remain unimplemented. AWPA has not sought to duplicate these; rather, it has endorsed them where appropriate and attempted to identify where this study can add value to the existing information and suggestions.There are many initiatives in place designed to promote and support skills and workforce development across the industry. They encompass career promotion, attraction and retention strategies, workforce planning, skills development and upskilling, and skills utilisation in the workplace. Some planned initiatives have never got off the ground or have ceased due to funding or other policy decisions. For some initiatives, such as scholarships, competition is fierce and funding is tight. Examples of initiatives that have been successful are highlighted throughout this report and have helped to shape the report’s recommendations.This study has found that that while there are many existing initiatives in place, coverage is not consistent—some sectors are more advanced than others in their workforce development practices. AWPA also notes that there are few cross-sectoral initiatives. This is a significant gap—there is a need to look at career pathways across the broader supply chain, and a coordinated approach to workforce planning and development is not yet in place across the industry. This is resulting in some areas of duplication and inefficiencies, and means that the available resources are not necessarily being prioritised in the most effective way. It also means that industry advice to government on skills and workforce issues is fragmented.Part One of the report examines the current situation through an economic overview and a workforce overview. It also outlines the institutional framework for skills and workforce development for this industry. This is followed by an analysis of the future demand outlook for industry output, exports and employment, assessed against the labour and skills supply outlook from education, training and migration. This includes a discussion of data limitations that inhibit an accurate assessment of workforce size and trends.Part One also discusses the factors impacting on future demand for skills and labour in the industry and the implications for skills and workforce development and identifies some of the emerging skills needs.Part Two discusses critical issues and makes recommendations about future initiatives and structures to support the development of the food and beverage industry’s workforce into the future. The discussion and recommendations are grouped under five workforce development themes, with an overarching theme about better coordination and leadership.In addition to this study AWPA has initiated two research projects which it hopes will provide the industry with practical tools and frameworks to progress some of the issues identified in the study. These projects will extend beyond this study and will be handed to industry to drive forward. AWPA is also aware of a number of closely related projects still in train, including the development by the National Agribusiness Education, Skills and Training Taskforce (NEST) of a workforce development strategy; and the Agrifood 2020 Workforce Planning and Capability Framework being developed by AgriFood Skills Australia (the national Industry Skills Council for the industry).
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It is important that there are clear coordination mechanisms to oversee, develop and maintain the knowledge base being developed and to ensure that it informs workforce planning and development in the sector in the future.The final section of this report discusses how a more coordinated approach to skills and workforce development for the food and beverage workforce might be achieved in the future, and the role that a high-level coordinating body might play.
Summary of recommendationsThis study’s overarching recommendation is to invest the workforce development agenda for the industry in a single national coordinating body representing industry, governments, employee representatives and the tertiary education sector. This body will provide leadership on skills and workforce development across the agrifood supply chain, and provide advice to government on policy priorities in education, training, skills, employment and workforce participation in the food industry.The coordinating body would be a forum for high-level engagement between stakeholders in the Australian food industry and would provide a leadership role in skills and workforce development, including ways to ensure that the industry has the skilled workforce required to make the most of the opportunities that will arise from unprecedented growth in global demand for food in the coming decades. It would also help address the current fragmented nature of industry advice to government on skills and workforce issues for the industry.The remit of the coordinating body would include considering and implementing the recommendations from this study, which can be viewed as suggestions for the body’s initial work program. The coordinating body would work closely with stakeholders to implement the study’s recommendations, including AgriFood Skills Australia, industry peak bodies, the Australian Council of Trade Unions (and individual unions as appropriate), the education and training sector and relevant government agencies.Part Two of the report includes further discussion of the proposed scope and role of the coordinating body. Recommendation 1 That the workforce development agenda for the food industry be invested in a national coordinating body comprising industry, governments, employee representatives and the tertiary education sector to provide leadership in skills and workforce development across the agrifood industry. Recommendation 2 That industry bodies, unions and employers work collaboratively at the national level to develop clearly articulated career pathways within and across sectors, linked to available education and training offerings and jobs, to support the attraction and retention of workers, and to build the adaptive capacity of individuals, regions and businesses across the supply chain.Recommendation 3 That industry and the tertiary education sector (vocational education and training and higher education) provide better information on opportunities in the industry to potential students to address the decline in enrolments in degrees in science and technology fields relevant to agriculture and food processing. In addition, that the role of the Primary Industry Centre for Science Education (PICSE) be expanded to other food-related science careers, as well as to occupations at the para-professional and skilled levels, to increase the exposure of individuals interested in careers in the agrifood industry to workplaces and practices. Recommendation 4 That the Australian Government’s 2014 review of the Seasonal Worker Program considers the issues identified by industry stakeholders in this study.Recommendation 5 That AgriFood Skills Australia works with Enterprise Connect and Skills Connect to develop joint funding opportunities (including through the National Workforce Development Fund) to achieve greater alignment of business improvement and skills programs that support workforce development for businesses in the food and beverage industry. This work should also explore opportunities to co-fund initiatives with similar programs run by states and territories. Recommendation 6 That governments provide public training subsidies for existing workers to
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access Certificate II level qualifications and subsequent skill sets in sectors where Certificate II is the industry standard qualification, in order to increase the number of workers within the industry who have nationally recognised qualifications and to support upskilling/reskilling and pathways between sectors. This should be monitored as the industry progressively moves towards Certificate III as the industry standard.Recommendation 7 That AgriFood Skills Australia develops a communication campaign aimed at employers across the agrifood supply chain, informed by the results of the Australian Workforce and Productivity Agency’s return on investment research project to encourage more employers to invest in lifelong learning of their workforce and to adopt high-performance work practices. Recommendation 8 That AgriFood Skills Australia develops an industry-driven workforce development advisory service for the agrifood industry to build workforce planning and development capabilities among employers.Recommendation 9 That industry has greater involvement in course design and the validation of educational outcomes to ensure the skills developed through tertiary education (vocational education and training, and higher education) are matched to industry needs. This could be trialled through a pilot focusing on an emerging or innovative sector of the industry.Recommendation 10 That AgriFood Skills Australia works in partnership with education and training providers and industry to develop agrifood technician/paraprofessional cadetships in new and emerging roles to increase the number of work-integrated learning opportunities available to students and to address emerging skills needs.
Recommendation 11 That the Australian Government supports and promotes the work of AgriFood Skills Australia to integrate language, literacy and numeracy skills into agrifood training products to increase the industry’s recognition of the importance of foundation skills in the workforce (among new entrants and existing workers).
Recommendation 12 That state and territory governments focus Adult Community Education (and similar initiatives) on programs that support vocational pathways to encourage greater workforce participation among groups currently under-represented in the industry, including new migrants and displaced workers requiring bridging courses.
Recommendation 13 That the Australian Government expands programs designed to increase workforce participation among Indigenous Australians linked to available jobs in the agrifood industry, to help reduce the gap between Indigenous and non-Indigenous participation in the industry. These programs should provide tailored support services to those who require them, based on existing successful models including those in the resources sector.
What is the current situation?
Economic overview Australia’s food supply chainIn its broadest sense, the Australian food industry encompasses a number of sectors—from the raw materials used in food production (the farming and fishing sectors) through to the processing sectors and ultimately to exports and domestic sales.The Department of Agriculture, Fisheries and Forestry’s (DAFF) report FOODMap: An analysis of the Australian food supply chain provides details of each major food category’s distribution channels, from production to processing, imports to exports, to the retail and food services sectors. As the DAFF report notes, each food category and channel has its own peculiarities driven by the
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nature of the product and its sources, the nature of the competitive environment within the supply chain and marketplace, and the ownership and integration arrangements that operate.1 The report shows that the majority of food exports are high volume with low value-add in terms of their food processing components. It does not, however, include in its focus the level and nature of skills and workforce development in food supply chain components. As part of a whole-of-government approach to food, the addition of information about employment, skills and training would complement the data already included in this valuable report.There is a high degree of interdependency along the food supply chain (including infrastructure, labour and imports). The Food and beverage workforce study focuses on the food production and food processing parts of the supply chain, but recognises that the innovations required to achieve export growth potential will impact on skills and workforce issues (such as job design) along the supply chain.There are industry concerns that ongoing closures in the food processing sector are removing a key link in the agrifood value chain through which bulk commodities are transformed into higher value produce with greater profit. Without a robust food processing sector, which is not an industry that can be quickly rebuilt, producers remain vulnerable to easing commodity prices and domestic price wars.2
Contribution to the Australian economyThe food and beverage industry makes an important contribution to the Australian economy. In 2011–12, farm and fisheries production and processing accounted for approximately 4 per cent of Australia’s GDP and 11.5 per cent of the total value of merchandise trade exports. Food and beverage manufacturing is the largest employing sector within manufacturing, and the second largest in terms of output (after metals processing).As shown in Figure 1, in 2011–12:
• the total value of Australian farm and fisheries food production was $42.6 billion• food and beverage processing was valued at $91.2 billion• exports across both production and processing were valued at $30.5 billion.
1 Department of Agriculture, Fisheries and Forestry, 2012, FOODMap: An analysis of the Australian food supply chain, DAFF, Canberra, p. 6.
2 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 2.
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Figure 1 Value chain for food in Australia, 2011–12
Source: DAFF, 2013, Australian food statistics 2011–12, DAFF, Canberra, p. 2.
Currently, meat, and grains and oilseeds are the main agricultural commodities contributing to the value of Australia’s food production. Together they accounted for just under two-thirds of the total value of food production in 2011–12. This was followed by fruit and vegetables (18 per cent), milk (11 per cent) and seafood (5 per cent). In terms of food and beverage processing, the largest commodities are meat, dairy and beverages (including wine). Meat and grains are also important contributors to export income, accounting for 58 per cent of the value of Australia’s food exports in 2011–12. Dairy products accounted for a further 8 per cent, followed by wine (6 per cent) and seafood (3 per cent). In real terms, the value of farm exports in 2011–12 was almost 50 per cent higher than in 1991–92.3 Appendix A includes further data and analysis on commodity production and exports.While export values have grown over recent years, Australia still has a very low level of exports considered to be elaborately transformed. Australian food products are categorised into two main groups based on the level of transformation: minimally transformed, and substantially and elaborately
3 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Prospects for agriculture and its workforce, ABARES’s contribution to the AWPA food workforce study, unpublished.
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transformed.4 The following list separates food products based on these categories:5 Minimally transformed goods
• Live animals—for example, cattle, sheep exported for consumption in countries of destination• Fish and shellfish—for example, live, fresh, chilled and frozen• Fresh and chilled horticulture—for example, vegetables, fruits and nuts• Grains—for example, wheat, barley, corn, oats, sorghum• Oilseeds—for example, canola, soybeans, sunflower • Other unprocessed food not classified elsewhere.
Substantially and elaborately transformed goods
• Processed meat—for example, beef, veal, sheep, lamb, goat, pig meat, poultry (including chicken, duck, turkey, geese), bacon, ham and other smallgoods
• Processed seafood—for example, pieces, fillets, dried, canned, preserved fish and shellfish• Dairy products—for example, milk and cream processing, ice cream, butter, cheese, milk powders• Processed fruit and vegetables—for example, canned, bottled, dried, juiced, preserved, frozen• Oil and fat—for example, canola oil, sunflower oil, cottonseed oil, lard• Flour mill and cereal food—for example, flour mill products, cereal food, baking mix• Bakery products—for example, bread, cakes, pastries, biscuits• Other foods—for example, sugar, confectionery, other processed foods not classified elsewhere• Beverages and malt—for example, soft drink, cordial, syrup, beer and malt, wine, spirits.
Structure of the food production and processing sectorsIn 2010–11 there were 135,447 agricultural establishments in Australia, down from 158,998 in 1990–91.6 The agricultural sector is mostly comprised of family/owner-operated and small businesses. In 2010–11 there were 121,000 businesses which reported agriculture as their main activity.7 Of these, 71 per cent were non-employing businesses. Less than 1 per cent of agriculture businesses employed 200 or more employees. Structural shifts in farming are intensifying the trend away from family-owned farms towards increasing consolidation, corporatisation and use of farm employees and contractors. The Productivity Commission noted that between 1982–83 and 2002–03 the number of farms declined from 178,000 to 132,000, while the average size of farms, measured in hectares (ha), increased from 2,720 to 3,340 ha. The report noted that the number of small farms had decreased while the number of medium-sized farms had increased.8 Agricultural production has also become more concentrated on large farms, with an estimated 10 per cent of Australian farm businesses now producing over 50 per cent of output. In contrast, the smallest 50 per cent of farms account for just 10 per cent of gross farm output.9
4 The distinction between substantially transformed goods (STGs) and elaborately transformed goods (ETGs) is not precise. However, ETGs generally involve more intensive intellectual property, capital and innovation. STGs are goods such as alcoholic beverages, meat and sugar. ETGs are those such as biscuits and confectionery that have undergone a more advanced level of transformation in comparison to STGs, and that progress through a greater number of processes and/or more complex processes to reach their final product.
5 Department of Agriculture, Fisheries and Forestry, 2013, Australian food statistics 2011–12, DAFF, Canberra, p. 80. 6 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Prospects for agriculture and its workforce:
ABARES’s contribution to the AWPA food workforce study, unpublished.7 ABS, 2013, Agricultural commodities, Australia, 2011–12, cat. no. 7121.0, ABS, Canberra.8 Productivity Commission, 2005, Trends in Australian agriculture, Productivity Commission, Canberra, p. xxii.
9 Productivity Commission, 2005, Trends in Australian agriculture, Productivity Commission, Canberra p. xxiv.
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In recent decades, the average size of farms engaged in cropping has been steadily increasing as farmers have sought to realise economies of scale. In 2011–12, the average size of broadacre farms engaged in cropping or mixed crop–livestock was around 2,340 hectares, compared with around 1,250 hectares in 1977–78. In contrast, the trend growth in the average size of beef, sheep and mixed sheep–beef sectors has changed little since 1977–78.10
Since the early 1990s, favourable returns for cropping, compared with wool, have led to an increase in the area devoted to crops. This trend is largely a result of large-scale structural adjustment in the wheat–sheep zone that brought more land to cropping from livestock production following the collapse of the reserve price scheme for wool. Additionally, historically favourable grains and oilseed prices since 2007–08 have helped returns to cropping remain attractive compared with production alternatives. Between 1989–90 and 2011–12, the average area devoted to crops on broadacre farms increased by 91 per cent to 403 hectares.11 During this time, the area planted to grains and oilseeds rose by 64 per cent to 24.3 million hectares.12
In 2011, there were more than 13,000 businesses in the food and beverage processing industry in Australia, 99 per cent of which were small and medium enterprises (SMEs). However, almost three-quarters of the domestic industry’s revenue was accounted for by Australia’s 50 largest food and beverage companies, most of them large multinational corporations.13 The bakery product manufacturing (non-factory based)14 group had the largest share of businesses (employing and non-employing) relative to other sectors. Most of the output of these SMEs is for niche markets serving their respective localities. This is in contrast to industry sectors such as meat processing, dairy product manufacturing, and sugar and confectionery manufacturing, which have a relatively high proportion (5.4, 3.8 and 5.2 per cent respectively) of large firms (200 or more employees) that are characterised by economies of scale.15
There is a large workforce that directly supports the agrifood production and processing sectors (in the order of 553,000). In addition, many other employees indirectly support the agrifood industry in other parts of the supply chain, including the services sector. However, there are issues with the published data that make it difficult to analyse the size and make-up of the workforce, including the large number of seasonal workers who are not captured in the Labour Force Survey. This aspect is discussed in more detail in the section Data limitations and implications below. Employment is spread across occupational categories from highly skilled to semi and low skilled, including Managers, Professionals, Technicians and Trade Workers, and Labourers. The workforce has a number of features that in some ways make it unique, and that require the use of different approaches to workforce issues. These defining features include:
• a relatively high level of seasonal, casual and contract labour (including harvest labour) within the agriculture and horticulture sectors
• a wide geographic spread, with much of the work occurring in regional and rural areas
10 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Prospects for agriculture and its workforce: ABARES’s contribution to the AWPA food workforce study, unpublished.
11 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Prospects for agriculture and its workforce: ABARES’s contribution to the AWPA food workforce study, unpublished.
12 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Prospects for agriculture and its workforce: ABARES’s contribution to the AWPA food workforce study, unpublished.
13 See Australian Workforce and Productivity Agency, 2013, Food and beverage workforce issues paper: Statistical appendixes for a list of major companies in both production and food processing. Available at awpa.gov.au/our-work/sector-specific-skill-needs/Pages/Food-and-beverage-workforce.aspx.
14 Non-factory based bakeries were introduced into the ANZSIC Manufacturing Division in 2007–08 and this has had an impact on trend data for the food processing industry.
15 Food Processing Industry Strategy Group, 2012, Food Processing Industry Strategy Group: Final report of the non-government members, DIISRTE, Canberra, p. 25.
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• an ageing workforce within agriculture• workers from a wide range of cultural backgrounds• low levels of literacy and numeracy across a number of occupational groups and industry
subsectors, across both production and processing• a wide dispersion in skill levels—from highly skilled occupations to semi- and low-skilled jobs• a range of ownership structures, including owner operators, family business models, sovereign
wealth funds and multinationals• a high concentration of SMEs.
Productivity growth: Producing more with lessProductivity measures reflect the efficiency with which inputs such as land, labour and capital are used to produce output. Productivity measures may refer to changes in output achieved from all inputs together, referred to as ‘total factor productivity’ (TFP), or may be partial productivity measures relating to a single input such as labour or land. For example, changes in crop yields (output per hectare) show changes in the partial productivity of land.Some factors that have facilitated productivity growth in Australia include capital deepening (an increase in the amount of capital used relative to labour, typically associated with labour-saving technologies), increases in average farm size and investment in agricultural research and development.16 Total factor productivity in the broadacre industries grew at an average rate of 1 per cent per annum from 1977–78 to 2010–11. This was the result of modest increases in output (averaging 0.1 per cent per annum) combined with a more substantial reduction in total inputs (averaging 0.9 per cent per annum).17
Cropping enjoyed a period of rapid productivity growth in the 1980s and 1990s. Productivity improvements were realised by an increased use of fertilisers, seed and crop chemicals, the introduction of low-till or no-till farming, new crop varieties, increases in average farm size and a shift towards larger and more efficient sowing and harvesting equipment. Since the 1990s, TFP in cropping has slowed due to widespread drought conditions and other factors, such as reduced expenditure on research and development.18
In contrast to cropping, TFP growth has picked up in the livestock industries in the last decade. In the case of beef, TFP growth has improved from negative growth of almost 2 per cent from 1977–78 to 1987–88 to positive growth averaging almost 1 per cent between 1999–2000 and 2010–11. Growth in live exports allowed farmers in the northern beef industry to expand the average size of operations, increasing the capacity of farmers to invest in improved pastures and sophisticated cattle management systems. Productivity has also benefited from a higher proportion of Bos indicus breeds (adapted to hot climates) and the eradication of brucellosis and bovine tuberculosis from the Australian beef herd.19
16 Sheng Y, Nossal K and Ball E, 2013, ‘Comparing agricultural total factor productivity between Australia, Canada and the United States’, paper presented at Australian Agricultural and Resource Economics Society 57th Conference, Sydney, 5–8 February 2013.
17 Dahl A, Leith R and Gray E, 2013, ‘Productivity in the broadacre and dairy industries’, Agricultural commodities: March quarter 2013, ABARES, Canberra, p. 203.
18 Dahl A, Leith R and Gray E, 2013, ‘Productivity in the broadacre and dairy industries’, Agricultural commodities: March quarter 2013, ABARES, Canberra, p. 205.
19 Gleeson T, Martin P and Mifsud C, 2012, ‘Northern Australian beef industry: Assessment of risks and opportunities’, ABARES report to client prepared for the Northern Australia Ministerial Forum, Canberra, May, pp. 23 and 62.
18
Figure 2 Average annual productivity growth, by period
Data source: Dahl A, Leith R and Gray E, 2013, ‘Productivity in the broadacre and dairy industries’, Agricultural commodities: March quarter 2013, ABARES, Canberra.
In the sheep industry, productivity growth averaged close to zero between 1977–78 and 2010–11. In the 1980s, high prices caused a rapid increase in wool production. This led to declining productivity as fewer efficient producers joined the industry. Beginning in the mid-1990s there has been a notable turnaround in productivity growth, coinciding with a shift in industry focus away from wool and towards slaughter lamb production. Recently, sheep meat TFP has benefited from improved ewe fertility and decreased lamb mortality rates.20 Between 1977–78 and 2010–11 the partial productivity of labour increased strongly, at 2.2 per cent per annum for all broadacre industries. This was accompanied by a decline in labour use of 2.1 per cent per annum on average, the fastest decline of all inputs. This largely reflects significant labour reductions in mixed crop–livestock and sheep industries. Non-land capital use (including structures, plant and herd capital) has also fallen across all broadacre industries, but at a slower rate (1.8 per cent per annum). The slower decline in capital use compared to labour partly reflects capital deepening (an increase in the ratio of capital to labour) in cropping and beef industries, which has contributed to higher labour productivity.21 Across the broadacre industries, there has been a trend towards more intensive production. Over the period 1977–78 to 2010–11, the average annual increase in materials use was 2 per cent. Much of this growth has occurred over the last 20 years due to increased use of fertilisers, crop chemicals and purchased feed. This has led to an increase in land productivity over the period.22
20 Dahl A, Leith R and Gray E, 2013, ‘Productivity in the broadacre and dairy industries’, Agricultural commodities: March quarter 2013, ABARES, Canberra, p. 209.
21 Dahl A, Leith R and Gray E, 2013, ‘Productivity in the broadacre and dairy industries’, Agricultural commodities: March quarter 2013, ABARES, Canberra, p. 203.
22 Dahl A, Leith R and Gray E, 2013, ‘Productivity in the broadacre and dairy industries’, Agricultural commodities: March quarter 2013, ABARES, Canberra, p. 204.
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Table 1 Average annual input, output and productivity growth by industry, 1977–78 to 2010–11
Data source: Dahl A, Leith R and Gray E, 2013, ‘Productivity in the broadacre and dairy industries’, Agricultural commodities: March quarter 2013, ABARES, Canberra.
Despite increased productivity, Australian agriculture remains under pressure as rising input costs have only been partly offset by the growth in productivity.23 Continued productivity increases are important to ensure the future competitiveness of Australian agriculture.In terms of labour productivity growth24 (as measured by gross value added (GVA) per hour worked),25 both the agriculture, and food, beverage and tobacco sectors performed above the all-industries average in the 1990s as shown in Figure 3 below. These sectors continued to experience above-average labour productivity growth in the early 2000s; however, from 2002–03 labour productivity in the two sectors diverged. Whereas agriculture experienced strong growth for most of the remaining part of the decade (up by 5.4 per cent on average per annum between 2002–03 and 2009–10), labour productivity growth declined in the food, beverage and tobacco sector (down 0.4 per cent per annum over the same period), falling below the all-industry average in 2006–07 and remaining there for the rest of the decade despite improvement between 2008–09 and 2009–10. Since 2009–10, food, beverage and tobacco manufacturing has continued to experience below-average labour productivity growth, remaining stable over the year to 2010–11 and falling 4.7 per cent between 2010–11 and 2011–12. On the other hand, the agriculture sector has experienced very strong labour productivity growth since 2009–10, up by around 15 per cent per annum to 2011–12. Labour productivity growth in the agriculture sector has been driven by a combination of rising GVA plus declining hours worked resulting from technological advances. Whereas GVA peaked in 2011–12 at $30.2 billion driven by strong demand (including export demand) and high terms of trade, hours worked fell to the lowest point since records by industry began.
23 Dahl A, Leith R and Gray E, 2013, ‘Productivity in the broadacre and dairy industries’, Agricultural commodities: March quarter 2013, ABARES, Canberra, p. 200.
24 The approach to labour productivity taken in the first part of this section is consistent with that taken in DIISRTE’s Food processing industry strategy group report, 2012. For this reason, the data here provides an update on the data provided in that report.
25 GVA per hour worked has a number of limitations as a measure of labour productivity. These include incomparability between various sectors due to relative differences in labour/capital intensities. For example, higher capital-intensive industries have higher GVA per worker; however, this may not provide a fair representation of labour productivity in general. For this reason, the focus here is on comparative growth between relevant sectors with absolute figures not provided.
21
Figure 3Gross value added per hour worked
Sources: Australian Bureau of Statistics, Australian national accounts: National income, expenditure and product, cat. no. 5206.0, March 2013; Australian Bureau of Statistics, 6291.0.55.003 Labour force, Australia, detailed, quarterly, May 2013.
It should be noted that in terms of productivity, the Agriculture sector is subject to a number of ‘unmeasured’ inputs and outputs, such as rainfall, that do not affect other industries such as manufacturing to the same extent. This point is made in the 2013 release of the Productivity Commission’s first edition of the PC productivity update series. This publication also highlights research indicating that manufacturing is the only industry that has the same productivity cycles as the Australian Bureau of Statistics (ABS) 12-industry market sector, with sectors such as Agriculture subject to ‘cycles that are clearly driven by other factors’.26 A 2011 study by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) highlighted the importance of human capital for productivity growth.27 As new technologies are developed, productivity growth depends on the ability of farmers to effectively select, adapt and implement appropriate innovations. The supply of skilled labour in agriculture is limited by a number of factors, including reduced participation in vocational education and training (VET) and other tertiary courses, competition from other industries, declining rural populations and poor perceptions of agriculture as a career path.28
Australia’s place in the global marketAustralia plays an important role in the global market for agricultural and food products, and is a significant player in world trade for several commodities. In the past 20 years there has been a noticeable shift in trade from European to Asian markets, with this trend expected to continue into the future as strong income growth in developing Asian countries like China, India and Indonesia increases
26 Productivity Commission, 2013, PC productivity update, May, p. 12.27 Nossal K and Lim K, 2011, ‘Innovation and productivity in the Australian grains industry’, ABARES Research Report 11.06,
ABARES, Canberra.28 Department of Agriculture, Fisheries and Forestry, 2009, Workforce, training and skills issues in agriculture, a report to the
Primary Industries Ministerial Council by the Industries Development Committee Workforce, Training and Skills Working Group, DAFF, Canberra.
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the demand for agricultural products.29
In 2010, the value of global food exports was estimated at US$1,026 billion, of which the world’s largest food exporter, the United States, had a market share of 10.8 per cent. Australia ranked 16th in the world as a food exporter and 32nd as a food importer. For processed food and beverage products, alcoholic beverages were the most globally traded in value terms in 2010, followed by meat.30 While Australia is a relatively small global food producer, it is acknowledged as a reliable exporter of high-quality ‘clean and green’ agricultural commodities and food products. This is an important consideration for Asian markets where food safety is a top concern following a number of well-publicised health scares from locally produced products such as infant formula and pork meat.Australia already has a strong record of exporting agricultural and food products—many of our largest food markets are in Asia—and we have a reputation as a leader in agricultural and food technology and science solutions.Australia also has much to offer the world in policy development and collaboration with other countries in science and research, particularly in areas such as: animal and plant health and biotechnology; production practices; natural resource management and remediation; and logistics and product safety. As noted by AgriFood Skills Australia:
While Australia currently produces around two per cent of the food traded worldwide, industry’s enduring contribution to food security will be through world-class research and innovation on natural resource management and nutritional, drought tolerant and pest-resistant crops to allow small-scale farmers in local communities regain control of their food systems.31
Key facts on Australia’s place in the global market include the following:• Around 60 per cent of Australia’s agricultural production is exported.32
• Australia is among the world’s largest exporters for many commodities, including wheat, beef, dairy, sugar and sheep meat.33
• In 2010, Australia was the second largest producer of sheep meat, behind China, and the world’s largest exporter of mutton and second largest exporter of lamb.
• Australia grows and produces over 93 per cent of Australia’s domestic food supply.34
• One Australian farmer produces enough food to feed 150 people.35
With income per person in Australia being high by world standards and the country having a comparatively small population that is growing slowly, most of the future growth in Australian agriculture will depend on exports. Increasing exports is also important to scaling up production, which is important to reducing costs and competition against imports. According to AgriFood Skills Australia:
For many sectors, and individual businesses fatigued by the supermarket duopoly, the potential of overseas markets are both attractive and essential to their future in the industry. This is not to say that our domestic market is unimportant, simply that with a population of 22 million, the
29 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, Commonwealth of Australia, Canberra, p. 5.
30 Food Processing Industry Strategy Group, 2012, Food Processing Industry Strategy Group: Final report of the non-government members, DIISRTE, Canberra, p. 35.
31 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 4.32 National Farmers’ Federation, 2012, NFF farm facts: 2012, NFF, Canberra, p. 5.
33 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Prospects for agriculture and its workforce, ABARES’s contribution to the AWPA food workforce study, unpublished.
34 National Farmers’ Federation, 2012, NFF farm facts: 2012, NFF, Canberra, p. 5.35 National Farmers’ Federation, 2012, NFF farm facts: 2012, NFF, Canberra, p. 5.
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industry must look internationally to remain prosperous.36
As discussed throughout this report, Australian food and beverage manufacturers will need to exploit a range of factors in order to be successful in the global marketplace against fierce competition.
Regional overviewThe agrifood industry is the lifeblood of many regional towns. A thriving Australian food industry will support our regional economies through successful businesses providing rewarding jobs. Australia’s diverse regions face unique challenges and opportunities, and solutions need to be tailored to address specific regional issues, complementing policies applied across Australia.
Regional industry structureIn 2011–12, farm businesses occupied 405 million hectares, or 53 per cent of Australia’s total land area, compared with 417 million hectares in 2007–08 and 446 million hectares in 2001–02. The total area of land occupied by farms peaked in the mid-1970s at 500 million hectares.37
A high proportion of Australia’s agricultural land is used for grazing, accounting for 88 per cent of the total in 2009–10. Most grazing occurs on native vegetation, accounting for 73 per cent of agricultural land, with a further 15 per cent used for grazing on improved pastures. In 2009–10, around 8 per cent of Australia’s agricultural land was used mainly for cropping.38
Agricultural activities are dictated largely by climate, soil types and water availability. There are three broad zones in which agricultural activity occurs: pastoral, wheat–sheep and high rainfall. Within these areas, there is also some irrigation-based farming, drawing on stored surface water (dams, major rivers and streams) and underground sources. Much of the pastoral zone is characterised by low rainfall, less fertile soils, and large farming activities involving the grazing of cattle for beef, and sheep for wool and mutton. The principal farming activities in the wheat–sheep zone are cropping (principally winter crops) and the grazing of sheep (for wool, lamb and mutton) and beef cattle. Prime lamb and beef production are undertaken in the high rainfall zone. The coastal part of the high rainfall zone is also where much of Australia’s dairy industry is based (along with some dairying in inland irrigation areas).39
The majority of food and beverage processing businesses are located along the east coast of Australia, where a high proportion of the population resides. The remote and inland regions account for a small percentage of businesses compared to the capital and other large cities.40
According to the Australian Food and Grocery Council (AFGC), Queensland has a high concentration of juice, processed fruit and vegetable, and sugar producers. New South Wales has a high number of dairy, cereal, snack food, processed fruit and vegetable and meat producers, Victoria has a high number of confectionery, smallgoods and processed fruit and vegetable, and dairy producers.41
A high proportion of meat and fish processors is located in Queensland due to the strong cattle farming and prawn fishing/farming sectors there. South Australia and Tasmania also have a strong fish processing sector due to the importance of aquaculture in those states (i.e. salmon, tuna, shellfish). Wild-catch fisheries occur around the whole of Australia’s coastline. 36 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 3.37 Australian Bureau of Statistics, 2013, Agricultural commodities, Australia, 2011–12, cat. no. 7121.0, ABS, Canberra; Australian
Bureau of Statistics, 2011, Land management and farming in Australia 2009–10, cat. no. 4627.0, ABS, Canberra; Australian Bureau of Statistics, 2003, Agricultural commodities 2001–02 cat. no. 7121, ABS, Canberra; Australian Bureau of Agricultural and Resource Economics and Sciences, 2012, Agricultural commodity statistics 2012, ABARES, Canberra.
38 Australian Bureau of Statistics, 2011, Land management and farming in Australia 2009–10, cat. no. 4627.0, ABS, Canberra.39 Department of Agriculture, Fisheries and Forestry, 2005, Australian agriculture and food sector stocktake, DAFF, Canberra, p.
4.40 Food Processing Industry Strategy Group, 2012, Food Processing Industry Strategy Group: Final report of the non-
government members, DIISRTE, Canberra, p. 29.41 Australian Food and Grocery Council and A.T. Kearney Australia, 2011, 2020: Industry at a crossroads, Australian Food and
Grocery Council, p. 65.
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Dairy production is concentrated in Victoria, particularly in the Gippsland region. Fruit and vegetable growing and processing are fairly evenly distributed between states proportionate with population (with the exception of Tasmania which has a proportionally higher level of vegetable growing and processing activity). Sugar cane farming and processing is highly concentrated in Queensland. Banana growing is also centred in Queensland, particularly to the north, and a wide range of other fruit such as avocados and mangoes are also grown in Queensland and the Northern Territory.Grape growing and wine processing is generally clustered in regions, predominantly in South Australia (with nearly half of Australia’s wine processing activity), followed by New South Wales and Victoria. Table grapes are mostly grown in the Murray–Sunraysia region.Western Australia produces almost 37 per cent of Australia’s wheat, while almost all of Australia’s rice production occurs in New South Wales.Appendix A provides further data and analysis on regional patterns of production.
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Wine—future outlookThe wine sector—from grape growing through to winemaking—has been undergoing a period of significant restructuring over a number of years. Despite the changes that have already occurred, the signs are that the transformation is only just beginning.Through their Wine Restructuring Action Agenda, the peak industry bodies are confronting the reality of a grape and wine oversupply and setting out a plan for the industry to regroup and adjust to meet the dual challenges of increasing costs (due to the high Australian dollar and high input costs, including labour) and competition, both in domestic and export markets.Australia’s total supply of wine is nearly double demand, including exports—current production is some 20 to 40 million cases a year more than is being sold.42 Exports in particular have slowed in the past five years, with China the only market to grow in the past two years. World demand for wine is forecast to be flat; however, there are significant export opportunities emerging in Asian markets (particularly China) and consolidation of the industry could see it placed to take full advantage of this.The most important aspect of the plan is for growers to reduce their grape production—essentially, pulling out their vines. While this seems an unfortunate prospect it will benefit the industry in two ways. Firstly, it removes the least profitable and lower quality vines from the system, improving the overall quality of product. Secondly, it helps to alleviate the oversupply, which will better align supply and demand. This means that wines can be sold at their true value rather than at discount prices, which will improve the viability of businesses and the value of the Australian wine brand.What does this mean for the wine sector workforce? Overall there will be a necessary reduction in the number of workers required as production decreases and as mechanised harvesting becomes more prevalent. However, the increased focus on high-quality wines means that a higher level of skills will be valued within the sector. The industry reports that formal education programs are high quality, but only offered at the tertiary level by two institutions. Skill-set training courses specific to the wine sector are infrequent and indications from the industry are that this could be an area for improvement.The increased market pressure on the wine sector also means that business and marketing skills will become increasingly important. The Winemakers’ Federation of Australia has already indicated that workshops on business skills are in high demand and have an immediate and significant impact on participants. With pressure for increased worker productivity, it is important that skills learnt are fully used in the workplace.The wine sector has little difficulty with attraction and retention; and with the reduction in workforce numbers the challenge will be to retrain displaced workers to enable them to find employment in other sectors.
Employment distributionFigure 4 shows the breakdown of employment for agriculture and food and beverage manufacturing by state and territory. It shows food manufacturing employment is concentrated on the east coast, while 42 Ryan L, 2012, ‘Wine production in Australia’, IBIS World Industry Report C1214, IBIS World, p. 7.
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agriculture employment is more evenly spread between jurisdictions, and is of greater relative importance as an employing industry for smaller populated and regional-based states, such as Tasmania. Areas with high concentrations of agricultural employment include the Lachlan Valley region in New South Wales, the Darling Downs–Maranoa region in Queensland, the wheat belt and Albany regions in Western Australia, the Grampians and Warrnambool–Otway Ranges regions in Victoria, and the Limestone Coast and Murray and Mallee regions in South Australia. In most of these regions, the sheep, beef cattle and grains industry is the largest employer, although in the Warrnambool–Otway Ranges region, dairy farming is the largest employer. In the Murray and Mallee region, fruit and tree nut farming is also important, employing almost 40 per cent of the region’s 5,200 agricultural workers.43
Victoria and New South Wales have relatively higher proportions of food and beverage processing employment, indicating the traditional importance of industrial and agricultural employment in these states and their relatively higher proportions of employing food and beverage processing businesses.
Figure 4 Persons employed by state/territory in agriculture, and food and beverage manufacturing
The Reserve Bank of Australia (RBA) conducted research on the labour market outcomes in regional areas of Australia and found some significant differences reflecting different industry structure.44 The RBA examined 314 statistical local areas where agriculture is the dominant industry in the region and found low average unemployment rates in mining and agricultural regions.45 This reflects, in part, significant labour mobility in and out of these regions and suggests that the labour mobility adjustment 43 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Prospects for agriculture and its workforce,
ABARES’s contribution to the AWPA food workforce study, unpublished.44 Cunningham M and Davis K, 2011, ‘Labour market outcomes in regional Australia’, RBA Bulletin: September quarter, RBA. 45 The RBA found that over the past decade regional areas that were heavily focused towards agriculture have generally had
around average unemployment rates, although it noted that the unemployment rate for a few statistical local areas in north Queensland rose sharply in 2009. While the trend shows that for 80 per cent of regions the unemployment rate is between 2.3 and 7.9 per cent, there is significant variability, with 10 per cent of agricultural regions having unemployment rates of over 7.9 per cent, with the highest being 21.4 per cent.
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mechanism is more important for agricultural regions than for regions that focus on tourism and manufacturing.46 This research suggests that for some regions there are likely to be labour and skills shortages, while for others there would be significant capacity to better engage the local workforce.
Access to education and trainingStakeholder submissions to this study have identified a range of barriers which impede the uptake and completion of training in regional areas. These difficulties exist from a training perspective and also an employer and student perspective. Regional areas often have very little infrastructure and support to deliver VET and higher education to the rural population. Delivering training services to small and remote communities is expensive, even when flexible options are used.For institutional delivery, students and trainers are often required to travel to access these services, taking time out of their community and family support to do so. This is time-consuming, costly and somewhat daunting for younger students and particularly unattractive to mature-age students. Distance also puts a disconnect between employers, businesses and providers. This has been reinforced through research conducted by AgriFood Skills Australia.Given the low population density in many regional and remote areas, providing training can be difficult for education and training providers. Migration away from regional areas intensifies this problem. Education and training providers face extra pressure due to ‘thin markets’. This makes it harder for employers to find suitably qualified training organisations, contributing to regional skill shortages. In 2012, the Western Australian Food, Fibre and Timber Industries Training Council surveyed a number of registered training organisations (RTOs) and found that over 60 per cent of RTOs in the food, fibre and timber industries experience difficulties servicing thin markets. In a submission to AWPA, the Western Australian Chamber of Commerce stated that:
With apprentices in regional areas they normally complete a two week block release in the metro area, with the employer receiving a small wage percentage rebate to cover their absence. This can have an effect on the individual as it is often the first time in the city for the student (novice experience). VET needs to look at what options are available to deliver training in the regional areas, such as the Northwest—mining courses, to extend to food and beverage industries to encourage skilled employees and build the local work force and region.
Despite these difficulties, there are also examples of successful regional approaches, characterised by close partnerships between employers, education and training providers, and community organisations.
46 Reserve Bank of Australia, 2011, Regional unemployment rates by dominant industry, using ABS, DEEWR and RBA data.
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AgriFood Skills Australia focuses on regionsIn an innovative approach to tackling rural workforce issues, AgriFood Skills Australia, an Industry Skills Council, is using a region-based model which involves local business communities and trains workers in skills that are transferable between a region’s industries.In rural areas where agricultural businesses are prevalent, labour demand revolves around seasonal peaks such as harvest time. By cross-skilling employees, AgriFood National Regional Initiatives aim to have a mobile workforce that can move between businesses and industries according to labour needs.Because the program focuses on a region holistically, it encompasses not only agrifood, but also resources, transport, services, health and education and related industries in each region. Its use of existing networks means that it can work quickly to solve labour problems.In addition, the program assists employers to improve their workforce management processes as a first step in becoming ‘employers of choice’.The Australian Government’s National Workforce Development Fund has allocated over $4 million for AgriFood Skills Australia to expand the program to four regions: Loddon Mallee in Victoria, the Eyre Peninsula in South Australia, Warren Blackwood in Western Australia and Western Downs in Queensland.AgriFood Skills Australia will partner with SkillsDMC, the Industry Skills Council for the resources and infrastructure industry, to ensure smooth collaboration where agrifood industries coexist with mining and resources industries.Each region is assessed separately in terms of its economic, social, cultural, natural and historical attributes to determine the most locally appropriate solutions. The initiative brings industry, government, community, education and employment services representatives together to exchange knowledge and ideas and develop on-the-ground strategies that create practical solutions.The program’s broad focus means that it is well placed to address other impediments to attracting and retaining workers and families in regional Australia, such as the availability of adequate child care services. The program also encourages enhanced engagement with the training system—including increasing the numbers of applications to the National Workforce Development Fund and Skills Connect programs.
Australia’s framework for skills and workforce developmentHistorically, a significant amount of learning, particularly in the agriculture sector, has occurred informally and on the job. AgriFood Skills Australia notes that, ‘Within family businesses, knowledge transfer has been almost seamless and regional communities play a significant, often undervalued place for sharing information and knowledge’.47 The industry believes that this culture of informal learning is highly evolved and should not be discouraged, but rather complemented with formal qualifications. The supply of skilled workers for the food workforce comes from a range of sources, including the skills 47 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, Canberra, p. 33.
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and knowledge gained through formal study in the secondary schooling system, VET and higher education. In addition to formal education and training courses, there is a considerable amount of unaccredited and informal training, including vendor training that occurs across the industry. The industry also has a well-established framework of research, development and extension (RD&E) services. The delivery of accredited education and training is regulated through national regulatory bodies, and is supported by a range of funding mechanisms and support structures.The costs of these various types of education, training and knowledge transfer methods are shared (in varying proportions) between individuals, employers and governments, and funding mechanisms vary significantly between jurisdictions.This section provides an overview of the framework for supplying skills, knowledge and learning to the food and beverage workforce.
School system initiatives in agrifood education and trainingThe role of primary and secondary education is itself critical to the future supply of skills to the food workforce. Science, technology, engineering and mathematics (STEM) education in primary and secondary schools provides an important basis to establish requisite subject knowledge for entry into VET and higher education courses. The supply of STEM-literate secondary school students and competition between disciplines requiring these subjects as pre-requisites for course enrolments impacts on the possible number of future entrants into skilled and professional food occupations. Initiatives designed to improve awareness of agrifood careers and courses, and increase participation in them, include:
• The Primary Industries Education Foundation (PIEF). PIEF was established in 2010–11 as a not-for-profit organisation to examine ways of introducing national coordination in rural industries education. It is the peak body for educating children, young people, their teachers and the broader community about food, farming and the contribution of primary industries. Specifically PIEF has developed and maintains a web portal of information and resources, reviews existing initiatives, identifies best practice, manages nationally focused primary education projects, monitors the adoption of educational resources and provides information about primary industry career paths for school advisers.
• Recently, $1.5 million was allocated for the Food in the Australian Curriculum initiative, which is intended to create new high-quality food and agriculture-related education resources linked to the Australian Curriculum. Resources will cover primary and secondary subjects, including science, geography, technologies and health and physical education. This initiative is to be facilitated by AgriFood Skills Australia, in collaboration with PIEF.
• The Primary Industry Centre for Science Education (PICSE). PICSE sends science education officers to give science-based class presentations to students in Years 11 and 12 to show real-life opportunities in science and primary industries jobs; provides industry placement scholarships to give school students hands-on experience in science and agriculture-related industries; and delivers professional development for science teachers. The scheme currently operates out of 11 university-based centres.
• VET in Schools (VETiS). This initiative provides opportunities for secondary students to study courses that provide certificate-level qualifications, while still at school. A number of secondary schools specialise in agriculture studies, either independently or in partnership with VET and/or higher education providers. Some schools are RTOs in their own right, although this varies across jurisdictions. A number of jurisdictions have successful VETiS programs focusing on agriculture, and food and beverage manufacturing, which incorporate work placements.
VET institutional arrangementsThe VET system provides the foundation for nationally recognised training and assessment, which results in qualifications under the Australian Qualifications Framework (AQF). VET qualifications are
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delivered by RTOs that are regulated by the Australian Skills Quality Authority (ASQA).48 The VET system provides qualifications at secondary school to higher education levels, and provides the foundation for both traineeships and apprenticeships, which combine study with an employment contract. The VETiS program enables secondary school students to commence nationally accredited VET studies while still at school, including through school-based apprenticeships and traineeships.At the national level there are 11 Industry Skills Councils (ISCs), which are industry-led, independent and not-for-profit government-funded bodies. ISCs engage industry on the development and continuous improvement of units of competency, skill sets and qualifications under the AQF, which includes training packages for specific industry sectors. They also advise the Australian Government on skills, training and workforce development issues for their industry and initiate strategies to address identified issues. ISCs also have a central role in overseeing the Australian Government’s National Workforce Development Fund (NWDF).AgriFood Skills Australia is the main ISC for the agrifood industry, although Manufacturing Skills Australia also has an interest in the food and beverage manufacturing sector. Other ISCs, such as Transport and Logistics and Service Skills, support other parts of the food supply chain.Some jurisdictions also have state-based industry skills advisory bodies, which play a similar role to the national ISCs and which facilitate state-level input into training package development and improvement. State bodies, such as the South Australian Food, Tourism and Hospitality Industry Skills Advisory Council, and the Western Australian Food, Fibre and Timber Industries Training Council, have developed a range of workforce development resources and programs.In recent years, the VET system has undergone a number of major reforms, including the move to national regulation of providers, harmonisation of apprenticeships, the introduction of demand-based funding and student entitlement models, greater contestability among providers, as well as a number of changes to the administration and funding arrangements for publicly owned Technical and Further Education (TAFE) colleges. The extent of these reforms varies between jurisdictions, resulting in a complex set of arrangements. The complexity and inconsistencies in institutional arrangements and funding models across jurisdictions has been raised by stakeholders as a major issue that needs further exploration. This is a significant issue for employers and RTOs that operate across state borders.The current scope of delivery of food-related training packages by state/territory and urban/regional location is shown in Appendix B, Table 21. The table highlights the importance of training for specific commodities and food processing industries located either within particular regions or with a critical mass of industry activity. For example:
• Most Food Processing training takes place in Victoria, within the cities or regions.• Most Meat training takes place in the eastern seaboard states, and is spread across cities and
inner and outer regions.• For Agriculture, Horticulture and Conservation and Land Management training, the picture is not
so clear reflecting the diverse range of training categorised under this package. There is a spread across all states and territories and remoteness classifications.
• Sugar Milling training occurs only in Queensland, largely in outer regional and remote locations.• Seafood industry training is significant in Western Australia and is largely delivered in outer
regional locations.• Animal Care Management training occurs mainly in New South Wales in urban settings.
Higher education institutional arrangementsAustralia now has a student demand policy with respect to higher education. The government no longer specifies how many undergraduate student places it will fund public universities to provide; rather, the government provides funding for all domestic students enrolled in an undergraduate course of study. Under the demand-driven funding system, public universities now decide how many places they will offer and in which disciplines. The Australian higher education system is regulated by the Tertiary 48 Note that the Victorian and Western Australian governments maintain their own regulatory systems.
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Education Quality Standards Agency (TEQSA). A number of universities in each state and territory offer degrees in the fields of Agriculture, Aquaculture or Food Science. These are listed in Table 2 and Table 3. The list is not definitive in terms of a supply pool as related degrees also provide people with knowledge in areas that are relevant to jobs within the industry. These include Engineering, Chemistry, Biology, Microbiology, Plant Sciences, Genetics, Biotechnology, Geology and Physics. Graduates from these disciplines form part of a wider supply pool from which the food industry could draw employees. All states and territories except the Northern Territory offer Agriculture. Only South Australia, Queensland, Western Australia, Tasmania and Victoria offer Aquaculture. Although New South Wales does not offer a degree in Aquaculture, some courses in that state allow a person to study Aquaculture. For example, Southern Cross University in New South Wales offers fisheries management as a major through their Environmental Science degree. Graduates could then become part of the potential labour pool.
Table 2 Universities that offer Agriculture and Aquaculture degrees
State University State University
NSW Charles Sturt University SA Flinders University
NSW University of New England SA University of Adelaide
NSW Southern Cross University VIC Deakin University
NSW University of Sydney VIC La Trobe University
NSW University of Western Sydney VIC Marcus Oldham College
QLD Griffith University VIC Open Universities Australia
QLD James Cook University VIC University of Ballarat
QLD University of Queensland VIC University of Melbourne
QLD University of Southern Queensland WA Curtin University
TAS University of Tasmania WA Murdoch University
ACT Australian National University WA University of Western
Australia
Table 3 Universities that offer Food Science degrees
State University State University
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NSW University of New South Wales NSW University of Western
Sydney
NSW University of Newcastle QLD University of Queensland
VIC Deakin University SA University of Adelaide
VIC RMIT University SA University of South Australia
VIC University of Melbourne WA Curtin University of Technology
VIC Victoria University WA University of Western Australia
VIC University of Ballarat
A new Agribusiness degreeThe University of Sydney’s new Bachelor of Food and Agribusiness has been developed with support from industry and will include a 12-week internship in the third year. This adds to other degree programs at the university that include professional placements which allow students to experience the work environment and establish industry contacts and networks. The new degree recognises that there will be a future demand for skills related to post farm-gate processes, food processing and the distribution chain. It also covers issues which are likely to become more important with the increasing globalisation of food supply including food safety policy and regulation.
Research, development and extension servicesA key method of knowledge transfer not available in most industries is the provision and use of RD&E services. Agricultural productivity growth is closely linked to innovation and RD&E.49 According to ABARES, public RD&E directly accounts for two-thirds of the average annual broadacre productivity growth recorded between 1952–53 and 2006–07.50 Researchers, scientists and technologists involved in the creation, innovation and delivery of RD&E are highly skilled and usually hold high-level qualifications.A number of bodies are involved in agrifood RD&E. Relevant to this industry are 11 Cooperative Research Centres, the CSIRO, 14 Research and Development Corporations and Collaborative Research Networks. These are mostly funded through a mix of private and government sources. One of the major issues in RD&E is around the ‘speed to market’ of moving new practices and knowledge from research and trial phases through to extension, adoption and commercialisation so that productivity gains and return on investment can be realised.51 Innovation only occurs when the results of R&D are put into practice. Central to this are R&D extension services, which traditionally were provided by state and territory agriculture departments, the CSIRO and related R&D bodies. In the last
49 National Farmers’ Federation, 2013, Blueprint for Australian agriculture 2013–20, NFF, Canberra, p. 17.50 Sheng Y, Gray E, Mullen J and Davidson A, 2011, ‘Public Investment in agricultural R&D and extension: An analysis of the
static and dynamic effects on Australian broadacre productivity’, ABARES Research Report 11.7, ABARES, Canberra, p. iii.51 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, Canberra, p. 7.
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decade or more there has been a decline in extension services offered by these bodies, especially through state governments, partly due to the increasing emergence of private companies and their intellectual property or commercial control of specific products. This issue is currently under consideration by the Standing Council on Primary Industries, which is developing an RD&E Framework. With the shift to more private provision of extension services, it is important to ensure that high standards are maintained. Professional associations, such as the Australian Institute of Agricultural Science and Technology (Ag Institute of Australia), offer a voluntary system of accreditation for agricultural service professionals, which they would like to see more widely adopted across the industry to ensure the quality and professionalism of advice.52
Australian Government skills and workforce development initiativesThe Skills Connect program provides industry with a single point of access for skills and workforce development support and directly funds vocational education and training through a range of initiatives. These funding initiatives offer business and industry access to a government co-contribution towards the costs of taking up accredited training. Activities under these programs include upskilling or reskilling employees, accelerating apprenticeships, boosting apprenticeship completion rates and equipping workers with higher skills in literacy and numeracy.The National Workforce Development Fund assists individual enterprises to increase their workforce capacity. It provides existing and new workers with opportunities to enhance their skills through formal training. The fund aims to increase the supply of skills in sectors and occupations where there is a current or emerging skills need. It uses a co-contribution model based on partnerships between industry and government.
Humpty Doo BarramundiTraining is helping a growing fish farm compete with the mining sector for workers in the Northern Territory’s tight job market.Dan Richards, General Manager of Humpty Doo Barramundi, said the National Workforce Development Fund would help the family-owned and run company to retain and develop existing staff as well as attract new workers to his business.‘We have young people eager to have a future in aquaculture, and mature people from other industries who bring their experience and knowledge to our business,’ Dan said.‘Workers appreciate the investment we are making in them and see the value in getting credit for what they know by gaining formal qualifications.‘Tapping into their talent and having the opportunity to help them develop through the National Workforce Development Fund is a necessary investment in the future of the company and our people.’
The Enterprise Connect Food Network is a specialised national group, bringing together business advisers with the expertise and networks to assist businesses in the food and beverage processing sector. The program offers eligible businesses a free, comprehensive and independent business review to help them reach and transform their potential. Enterprise Connect has helped to build lasting capability and address gaps for large numbers of SMEs in the manufacturing sector (including food where there are opportunities for value-adding and exports).
52 See Australian Institute of Agricultural Science and Technology, Ag Institute Australia, available at aginstitute.com.au/accreditation_development.html, accessed 28 August 2013.
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Coordinating bodiesThere are currently a number of bodies representing the interests of education, skills and workforce issues. As mentioned above, for the primary and secondary school system both PIEF and PICSE provide information on curricula content and study and career pathways. For the VET system, the relevant ISCs are AgriFood Skills Australia and Manufacturing Skills Australia. For the university sector, the Australian Council of Deans of Agriculture has been in place since 2007, with membership comprising universities that offer a degree course in agriculture or related areas.In September 2012, education and training bodies aligned with industry bodies such as the National Farmers’ Federation and relevant government agencies to form the National Agribusiness Education, Skills and Labour Taskforce (NEST). The taskforce, which will operate until mid-2014, aims to:
• improve communication and engagement between industry, educators and government • increase workforce participation in agriculture • build workforce planning and human resource management capabilities• improve data on the supply and demand of labour and skills in agriculture• facilitate greater industry ownership and responsibility for solutions.53
It will deliver a National Agriculture Workforce Development Plan in mid-2014. The lack of a single overarching coordinating body has emerged as a critical issue in this study and is discussed further in Part Two.
Workforce overviewAs the food and beverage industry restructures, some sectors will see employment growth, while others will see declines. For some sectors there will be a shift to higher skill requirements, while in others new technologies will further deskill traditional job roles. Key challenges will be to retain critical skills within the supply chain, develop new skills to keep pace with technology, and promote a culture of lifelong learning.
Employment demand trendsAgriculture and fishing workforce: Historical employment growth
In 2012, just under 324,000 people were employed in the Agriculture, Forestry and Fishing industry division (excluding forestry). The Agriculture subdivision accounted for the vast majority of this total (290,600). Appendix B, Table 22, shows that by far the largest employing sector within the agriculture sector is Sheep, Beef Cattle and Grain Farming with 128,300 employees, accounting for 44 per cent of employment in the Agriculture subdivision. Over the past five years employment in the Agriculture industry fell by an annual average of 1 per cent per annum. Falls in employment were highest in Nursery and Floriculture Production, Mushroom and Vegetable Growing, and Fruit and Tree Nut Growing.54 It should be noted that some categories include a proportion of workers not involved in food production (for example, those working solely in the wool or flower sectors).
Food and beverage manufacturing workforce: Historical employment growth
Approximately 228,000 people were employed across the food and beverage processing sectors in 2012. Over the past decade, employment has increased in this sector relative to other parts of
53 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, Canberra, p. 31.
54 Estimates of employment in subsectors with less than 6,000 workers (and calculations based on them) are subject to high relative standard errors and should be treated with caution.
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Manufacturing, making it the largest employing manufacturing sector.55
Appendix B, Table 23, shows that in 2012, Bakery Product Manufacturing was the largest employing sector (62,600). Since 2007–08, this sector has included Bakery Product Manufacturing (non-factory based) businesses, which are arguably more closely aligned to the Retail sector.56 Other significant employing sectors are: Meat and Meat Product Manufacturing (55,800), Beverage Manufacturing (28,600) and Food Product Manufacturing, not further defined (nfd) (25,500). Between 2007 and 2012, the fastest growing sector was Food Product Manufacturing (nfd) which grew by 7,500 (an average of 7.2 per cent per annum). Beverage Manufacturing employment also grew relatively strongly (by 3,900 or an annual average of 3.0 per cent), and Meat and Meat Product Manufacturing grew by 5,000 (an annual average of 1.9 per cent). Most other sectors recorded a decline in employment between 2007 and 2012, although the declines were small in numerical terms.
Occupational analysisAgrifood employment is spread across the ABS occupational categories, including Managers, Professionals, Technicians and Trade Workers, and Labourers. The largest employing occupations (at the four-digit occupation level) are: Livestock Farmers (83,600), Crop Farmers (45,900), Garden and Nursery Labourers (33,900), Mixed Crop and Livestock Farmers (33,400), Livestock Farm Workers (31,400) and Bakers and Pastrycooks (30,900).Between 2007 and 2012, employment of Farmers and Farm Managers fell by 22,200 (an annual average decline of 2.3 per cent). The falls were most significant for Crop Farmers and Livestock Farmers, followed by Mixed Crop and Livestock Farmers. The professional and technical/trade occupations generally experienced growth between 2007 and 2012.Appendix B, Table 24, provides information on the numbers of people employed in occupations that are important (in terms of employment size) to the agrifood industry.57 It should be noted, however, that for some occupations, such as Chemists, and Food and Wine Scientists, and Garden and Nursery Labourers, many of these people do not work exclusively in the food and beverage production sector.
Trends in earningsOver the past five years median weekly earnings in Agriculture, Forestry and Fishing have remained below the all-industries average, while manufacturing earnings have consistently been above the average. Figure 5 provides an overview of weekly median earnings estimates from 2007 to 2011 at the two-digit ANZSIC classification (this is the most current and most disaggregated data available).58
55 Food Processing Industry Strategy Group, 2012, Food Processing Industry Strategy Group: Final report of the non-government members, DIISRTE, Canberra, p. 50.
56 Food Processing Industry Strategy Group, 2012, Food Processing Industry Strategy Group: Final report of the non-government members, DIISRTE, Canberra, p. 51.
57 This data is by calendar year. The ABS releases occupational level data on a quarterly basis (February, May, August and November), and the data in this table is a four-quarter average for each year.
58 The Wage Price Index is the most accurate measure of wage trends available. However, the ABS does not measure wages information in the Agriculture, Forestry and Fishing industry for the Wage Price Index due to the high number of seasonal workers in the industry. The ABS requires workers to work for six months or more for their wages information to be recorded.
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Figure 5 Median weekly earnings in main job (persons), for Agriculture, Forestry and Fishing, Manufacturing, and All-Industries, August 2007 to August 2012 (latest available data)
Source: Australian Bureau of Statistics, Employee earnings, benefits and trade union membership, cat. no. 6310, August 2007 to August 2012.
DemographicsThe demographics of the food workforce differ from the average across other industries in a number of respects. This reflects the nature of the work within the industry and the dispersion of employment across metropolitan, regional, rural and remote locations. Figure 6 shows the age profile of the three industry subdivisions of relevance to this study compared with the all-industries age profile.59 The median age of workers within the Agriculture, Forestry and Fishing subdivision is 48 years, which is considerably older than the median across all industries (40 years), and with larger proportions in the 55 years and over categories, particularly the 65 years and over cohort.
59 This data reflects Agriculture, Forestry and Fishing, Food Product Manufacturing, and Beverage and Tobacco Product Manufacturing. However, the Forestry and Tobacco Manufacturing subsectors are not part of the scope of this study.
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Figure 6 Age distribution of workers (percentage terms) in food-related sectors and all-industries, 2012
Source: Australian Bureau of Statistics, 2012, Labour force detailed quarterly, cat. no. 6291.0.55.003.
A range of factors, including a declining number of small farms and fewer young people taking over family farms, has contributed to the agriculture workforce’s high median age. Between 1981 and 2011, the proportion of farmers under 35 years declined from 28 per cent to 13 per cent.60 The Australian Farm Institute (AFI) highlights two factors to consider when looking at the workforce age. A significant proportion of farmers are above retirement age and may no longer be actively involved in farm operations, although they are still classified as farmers due to their ownership of at least some of the farm assets. The presence of this group in the statistics is likely to bias the average age upwards. Further, over the period from 1990 to 2011 the average capital value of Australian farms has more than doubled in real (inflation-adjusted) terms, from around $1.78 million to $3.92 million. This is a result of farms getting bigger; consequently younger farmers are less likely to be able to afford to enter farming at an early age given the amount of capital now required. Many stakeholders also cite the out-migration of young people from regional communities in search of study and work options as another factor contributing to the older age profile.An older workforce presents challenges for future skills retention and succession planning, and implies the need to replace workers who will leave due to retirement. However, the increased mechanisation of farming processes and the trend towards farm ownership consolidation mean increased farm efficiency and a lessened imperative to hire new workers. The challenge is to ensure that skills are retained and passed on, and that new skills are developed within the existing workforce to make the most of new technologies. It should be noted, however, that some of the new technologies being introduced are intuitive, and while requiring a basic level of digital literacy, they do not require a higher level of skill. In addition to the difficulty filling vacancies, the costs of replacing the skills and experience of older workers is substantial. For example, the average cost of turnover for a farm is around $33,500 per employee, with a translated cost to industry between $336 million and $364 million per annum, which accounts for replacement costs, training a new employee and the cost of lost expertise and 60 Australian Bureau of Statistics, 2012, Australian social trends, December, cat. no. 4102.0, December 2012, ABS, Canberra.
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relationships.61 In response to the ageing profile issues, stakeholders have emphasised the importance of succession planning, highlighting a need to train business owners or managers in this type of planning. While the agricultural workforce has an older age profile, the food processing sector has a relatively young workforce, with over 40 per cent aged under 35 years old. See Figure 6 on the previous page. It should be noted, however, that the age profile does vary across food processing subsectors.Some industry sectors tell us that the most pressing issue is attraction and retention of workers. While some sectors have a high turnover of workers, in others ‘stagnation’ appears to be a problem. This suggests the need to differentiate between ‘good’ and ‘bad’ turnover, and the need to develop (and promote) career pathways within and between sectors.
Part-time employment and genderLevels of part-time employment and female employment vary significantly between and within the production and processing sectors. Within agricultural production, Appendix B, Table 25, shows part-time employment at the industry subdivision level. Part-time employment increased in Agriculture (1.7 percentage points) and Aquaculture (2.1 percentage points) at a higher rate than the all-industries average (1.4 percentage points) between 2007 and 2012.62 The proportion employed part-time in 2012 ranged from 14.4 per cent in Agriculture and Fishing Support Services to 44.3 per cent in Nursery and Floriculture Production. This compares with the all-industries average (across the economy) of 29.6 per cent.Appendix B, Table 26, shows that between 2007 and 2012 women’s share of employment in the Agriculture sector remained steady at 32 per cent, while it fell in Aquaculture (5.2 percentage points) and increased in Agriculture and Fishing Support Services (6.0 percentage points). These figures compare with a slight increase in the all-industries average (0.6 percentage points) over the five years.In 2012, women accounted for 45.7 per cent of employment averaged across all industries. Within the agriculture and fishing sector, the proportion ranged from 16.2 per cent in Fishing to 46.7 per cent in Nursery and Floriculture Production.Within the Food and Beverage Manufacturing sector, Appendix B, Table 27, shows the proportion of part-time workers in 2012 was 25.6 per cent. There is significant diversity in the availability or use of part-time work within the food and beverage processing sector, ranging from 12.4 per cent in (the traditionally male) Meat and Meat Product Manufacturing to 51.8 per cent in Seafood Production.Between 2007 and 2012, part-time employment increased in all food manufacturing subsectors, with the exception of Dairy Product Manufacturing. Significant increases were recorded in the Seafood Processing (12.9 percentage points) and the Oil and Fat Manufacturing subsectors (11.4 percentage points). Appendix B, Table 28, shows that within the Food and Beverage Manufacturing sector, women’s share of employment ranged from 9.7 per cent in Oil and Fat Manufacturing to 50.9 per cent in Bakery Production Manufacturing in 2012. The only sectors to show an increase in their proportion of female workers were: Meat and Meat Product Manufacturing, Fruit and Vegetable Processing, and Beverage Manufacturing.The demographic make-up of the industry has implications for attraction and retention of workers, the development of succession strategies, as well as strategies aimed at increasing workforce participation more broadly. Stakeholders have highlighted that businesses with more flexible work practices are more successful at engaging workers from under-represented groups. One stakeholder commented:
This is exactly how we overcome it—we have a very flexible fortnightly roster that enables
61 Centre for International Economics and the Ryder Self Group, 2008, Attracting and retaining staff in Australia’s beef, sheep and pastoral wool industries, Meat and Livestock Australia Limited, North Sydney.
62 This data on part-time employment refers to hours worked. It provides no indication of the level of casual and seasonal employment within the industry.
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people to work when they can. This requires a lot of management, but has attracted several housewives with great capability, out of the home and back to work.63
Overview of food workforce skills profileThis section provides an overview of the skills profile of the food production and processing workforce, and of how this has changed since 2006. The skills profile of an industry can be assessed in two ways: by the qualification profile of the workers employed in that industry and by the skill level of the occupations relevant to that industry. The latter is reflected in the ABS skill levels allocated to each occupation in the Australian and New Zealand Standard Classification of Occupations (ANZSCO).64 The following analysis considers both measures.Agriculture and fishing production skills trends
For the agriculture and fishing workforce, while formal qualifications are becoming more important in the industry, 60.4 per cent of workers in the industry have not completed a post-school qualification (significantly higher than the all-industries average of 38.2 per cent). However, this does not imply work is unskilled, with 62 per cent of employees classified as managers or professionals.65 A comparison of the 2006 and 2011 ABS census data in Table 4 shows a proportional increase in all post-school qualifications across the two census periods. While the overall number of qualified persons increased between 2006 and 2011, total employment fell. Nearly all of this fall can be accounted for by the fall in persons without a post-school qualification. This suggests structural adjustment in employment has been almost entirely restricted to those without post-school qualifications. It may also reflect retirement of older workers who are less likely to have a formal qualification. It should be noted that the qualifications held by workers in the industry cover all training packages, not just those specific to agriculture and food processing.
Table 4 Comparison of qualification profile for the Agriculture and Fishing sector and all-industries, 2006 and 2011 (census data)
Level of education
Agriculture and Fishing
2006 (%)
Agriculture and Fishing
2011 (%)All-industries
2006 (%)All-industries
2011 (%)
Bachelor or above 7.8 9.7 22.9 26.6
Advanced diploma/diploma 6.9 7.9 9.3 10.3
Certificate IV 1.3 1.7 2.4 3.2
Certificate III 14.2 15.5 16.5 16.8
Certificate II 1.2 1.3 1.3 1.3
Certificate I 0.1 0.1 0.1 0.1
63 Chamber of Commerce and Industry of Western Australia, submission to the AWPA Food and Beverage Study. 64 The ABS identifies five different skill levels where ‘skill level is defined as a function of the range and complexity of the set of
tasks performed in a particular occupation’. The ABS states: ‘Skill level is measured operationally by: the level or amount of formal education and training; the amount of previous experience in a related occupation; the amount of on-the-job training; and, required competently to perform the set of tasks required for that occupation.’ ABS, ANZSCO, available at abs.gov.au.
65 Department of Education, Employment and Workplace Relations, 2011, Agriculture, Forestry and Fisheries industry report, DEEWR, Canberra.
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With a post-school qualification 35.0 39.6 56.3 61.6
No post-school qualification 65.0 60.4 43.7 38.4
Source: ABS, Census of Population and Housing, 2006, 2011.
Appendix B, Table 29, shows the skill profile of the top 30 employing occupations within the agriculture and fishing industry. The final column in the table shows the skill level (as determined by the ABS) for each occupation, ranging from 1 (highly skilled requiring bachelor degree or above) to 5 (unskilled occupations). Appendix B, Table 29, shows that, even for those occupations with a notional skill level of 1 or 2, most of the occupations on the list have a high proportion of workers without a post-school qualification. This demonstrates that individuals can work in these occupations without necessarily having the requisite qualification. However, it may suggest that there are skill gaps in the workforce, which may be inhibiting productivity improvements.The National Farmers’ Federation (NFF) has noted that the skill rating for farmers (at level 1) is not reflective of the actual skill level of the occupation, as only a small proportion of farmers currently have (or need) a higher education qualification. The data also suggest that of the top 30 occupations in Agriculture and Fisheries, there are only a few where the majority of the people who work in that occupation have a post-school qualification. These include: Agricultural Scientists, Other Farm and Garden Workers, Gardeners, Aquaculture Farmers, Nursery Persons, Metal Fitters and Machinists and Metal Workers. Food and beverage manufacturing skill trends
The proportion of Food and Beverage Manufacturing workers without a post-school qualification is 54.8 per cent—significantly above the all-industries average of 38.2 per cent.There has, however, been an increase (of 4.5 percentage points) in the proportion of workers with a post-school qualification between 2006 and 2011. The increase in qualifications has been greatest at the higher qualification levels, with a significant increase in those with a bachelor degree or above. According to a report by the Australian Food and Grocery Council,66 only 17 per cent of post-school qualifications held by food manufacturing workers in 2010 were considered industry-relevant, slightly down from 18 per cent in 2007.Table 5 provides a comparison of the 2006 and 2011 census data qualification levels for the Food Processing Industry.
Table 5 Comparison of qualification profile for the Food and Beverage Manufacturing sector and all-industries, 2006 and 2011 (census data)
Level of education
Food and beverage 2006
(%)
Food and beverage 2011
(%)All-industries
2006 (%)All-industries
2011 (%)
Bachelor or above 11.9 14.7 22.9 26.6
Advanced diploma/diploma 5.6 6.9 9.3 10.3
Certificate IV 1.6 2.3 2.4 3.2
66 Australian Food and Grocery Council and A.T. Kearney Australia, 2011, 2020: Industry at a crossroads. Australian Food and Grocery Council.
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Certificate III 17.1 17.2 16.5 16.8
Certificate II 1.6 1.5 1.3 1.3
Certificate I 0.1 0.1 0.1 0.1
With a post-school qualification
40.7 45.2 56.3 61.6
No post-school qualification 59.3 54.8 43.7 38.4
Source: ABS, Census of Population and Housing, 2006, 2011.
Appendix B, Table 30, shows that, in general, the main employing occupations within Food and Beverage Manufacturing have the lowest ABS skill level, with very few highly skilled occupations. There are very few occupations where the majority of workers have a post-school qualification. The occupations where qualifications are most common appear to be Bakers and Pastrycooks, Production Managers, Metal Fitters and Machinists, Electricians, Specialist Managers, Butchers and Smallgoods Makers, and enabling occupations such as Accountants and Advertising, Public Relations and Sales Managers.
Supply of skills to the industryThis section reviews recent and current commencement and completion data for both the VET and higher education sectors as they relate to agriculture and food processing courses. The focus in this section is on entry level supply. Elsewhere in the report AWPA discusses the importance of upskilling of existing workers and the need to develop a culture of lifelong learning within the industry. In addition to the formal education and training courses discussed below, there is a significant amount of unaccredited training occurring within the industry, including vendor training. Further, the data below only includes publicly funded training. It is not clear how much formal training is being funded privately by individuals and firms, and whether there has been a substitution between publicly funded training and fee-for-service training (and vice versa) as funding policies of governments have changed.This section also discusses the contribution that migration makes to skills supply.
Trends in VET food-related coursesTable 6 below shows annual student commencements in food industry publicly funded VET training packages managed by AgriFood Skills Australia, between 2007 and 2012.67 This shows general growth in commencements across most training packages over the past five years, although at a lower rate to overall VET commencements. Of those students that commenced training in 2012, 46 per cent were at Certificate III level and 35 per cent at Certificate II level, with only 9 per cent at Certificate IV level, 6 per cent Diploma or higher and 4 per cent at Certificate I.
Table 6 VET student commencements in food-related training packages
Training package 2007 2008 2009 2010 2011 2012
Average annual growth
2007–12 (%)
67 There is limited formal data available on fee for service VET delivery by private registered training organisations (RTOs), including enterprise RTOs (eRTOs). However, it is likely that fee for service provision by private RTOs, including in-house training by eRTOs, contributes significantly to AQF qualifications delivered in the industry.
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Food Processing Industry 10,422 7,436 6,794 6,398 7,617 8,684 –3.6
Australian Meat Industry 7,938 8,609 8,565 8,020 7,483 9,391 3.4
Agriculture, Horticulture and Conservation and Land Management
36,242 36,574 38,172 39,945 39,339 41,133 2.6
Sugar Milling 4 0 38 17 0 4 0.0
Seafood 2,769 1,798 1,794 1,812 1,665 1,643 –9.9
Animal Care and Management 4,152 4,861 5,096 6,001 6,790 6,930 10.8
TOTAL Agrifood 61,527 59,278 60,459 62,193 62,894 67,785 2.0
Source: NCVER Vocstats. Note: significant declines and increases may be due to a training package qualification being superseded by another training package qualification.
Table 7 below shows that completions in food industry training packages have increased by an average of 8.2 per cent per annum between 2006 and 2011, a slower rate of increase than for all AQF qualifications (12.3 per cent per annum). Of those students that completed training in 2011, 43 per cent were at Certificate III level and 34 per cent at Certificate II level, with only 9 per cent at Certificate IV level, 8 per cent Diploma or higher and 7 per cent at Certificate I.
Table 7 VET student completions in food-related training packages
Training package 2006 2007 2008 2009 2010 2011
Average annual growth 2006–11
(%)
Food Processing Industry
2,840 3,718 3,032 3,112 2,787 3,915 6.6
Australian Meat Industry 3,851 3,966 3,760 4,069 4,024 3,390 –2.5
Agriculture, Horticulture and Conservation and Land Management
9,616 10,019 10,881 12,346 13,156 15,917 10.6
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Sugar Milling 0 0 0 0 0 1 NA
Seafood 564 395 433 362 609 621 1.9
Animal Care and Management
1,560 1,630 2,166 2,617 3,063 3,427 17.0
TOTAL Agrifood 18,431 19,728 20,272 22,506 23,639 27,271 8.2
TOTAL AQF completions
292,144
319,174
351,556 393,854 443,50
1 521,43
4 12.3
Source: National VET Provider Collection, 2006–11. Note: significant declines and increases may be due to a training package qualification being superseded by another training package qualification.
The large difference between annual commencement and completion numbers suggests that less than a third of commencements lead to completion of a formal qualification, although there is some variation between training packages and qualification level. In some cases, non-completions result from students gaining the units they need and dropping out of training before they complete.Another method of delivering VET is through VET in Schools (VETiS). Commencements in food-related VETiS courses have grown by about 7 per cent per annum since 2006, almost keeping pace with the general growth in VETiS. In 2011 there were 6,443 school students studying food-related VET courses. The vast majority of student commencements in VETiS food industry courses are at the Certificate I and II level (over 90 per cent). Non-food industry fields of education (FoEs) provide more access to higher AQF levels, although about 80 per cent are still at Certificate I and II, reflecting the overall entry-level nature of this type of training. While some students will finish their certificate while at school, others will complete post-school (or not at all). VETiS students are a subset of the broader VET program and are included in the commencement and completion data presented above.Apprenticeships and traineeships are an entry pathway into the industry which combines study with an employment contract. Again, apprenticeships and traineeships are a subset of the broader VET program and are included in the commencement and completion data presented above. These are shown separately in Table 8, demonstrating the extent to which apprenticeships and traineeships are used within each of the food-related sectors. Of the various training packages which utilise training contracts, the Meat Industry has the largest proportion as a subset of total commencements for the respective package (see Table 6).
Table 8 Apprentice and trainee commencements in food-related training, 12 months ending September
Training package 2008 2009 2010 2011 2012
Average annual growth, 2008–12
(%)
Food Processing industry
5,413 5,382 5,015 4,821 5,205 –1
Australian Meat industry 8,004 7,321 6,917 6,391 6,677 –4
Agriculture, 6,753 6,865 7,996 8,155 8,300 5
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Horticulture and Conservation and Land Management
Sugar Milling 0 4 0 0 0 N/A
Seafood 274 193 225 121 138 –16
Animal Care and Management
649 606 593 641 578 –3
TOTAL 21,093 20,371 20,746 20,129 20,898 0
Source: National Apprentice and Trainee Collection, December 2012 estimates, unpublished. Note: significant declines and increases may be due to a training package qualification being superseded by another training package qualification.
Table 9 Apprentice and trainee completions in food-related training packages, 12 months ending September
Training package 2008 2009 2010 2011 2012
Average annual growth, 2008–12
(%)
Food Processing industry
2,789 2,951 2,721 2,920 2,693 –1
Australian Meat industry
3,566 3,490 3,514 3,373 3,142 –3
Agriculture, Horticulture and Conservation and Land Management
3,489 3,592 3,799 4,245 4,301 5
Sugar Milling 0 0 0 3 1 N/A
Seafood 142 139 107 140 66 –17
Animal Care and Management
230 322 325 298 334 10
TOTAL 10,216 10,494 10,466 10,979 10,537 1
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Source: National Apprentice and Trainee Collection, December 2012 estimates, unpublished. Note: significant declines and increases may be due to a training package qualification being superseded by another training package qualification.
Table 9 shows there has been little growth in overall apprenticeship completions in food-related training packages, with steady growth in Agriculture, Horticulture and Conservation and Land Management offset by declines in Food Processing, Australian Meat Industry and Seafood training packages.
Trends in Certificate II and III commencementsThe above overview of student commencements and completions shows the quantum of training across the six food training packages in recent years. It also highlighted that the majority of commencements are at the Certificate III and II level. In recent years, there has been a trend towards training at the Certificate III level. Figure 7 shows this with a comparison of Certificate II and III commencement data for AgriFood training packages.
Figure 7 Agrifood Certificate II and III commencements 2007 to 2012
Source: VOCSTATS.
The ability to identify why there has been a decline in the use of Certificate II in comparison to Certificate III level training is complicated by a number of factors. As mentioned, NCVER data is restricted in scope to publicly funded training, but also there is no distinction between entry level qualifications and students undertaking a second or subsequent qualification. Another factor is a number of changes have occurred in recent years to government employer and student training incentives which may be driving behaviour.The available data does show, however, that of all students studying AgriFood-related Certificate II qualifications in 2012, over one-quarter had Year 10 as their previous highest level qualification, and a further 16.5 per cent had Year 11. This suggests that Certificate II is an important entry level qualification for people who left school before completing Year 12. A small proportion (3.7 per cent) already held a Certificate II level qualification, so it does not appear that students are churning through Certificate IIs. Of those studying Certificate III AgriFood qualifications in 2012, just under 30 per cent had Year 12 as their previous highest level qualification. Only 4.4 per cent had completed a Certificate II prior to studying the Certificate III.While the trend towards Certificate III level qualifications is welcomed, it is clear that there will remain many jobs within the sector where Certificate II is deemed the appropriate level. Further, a large
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proportion of the current workforce has no post-school qualification, particularly in agriculture. If we are to going to be successful in raising the proportion of the workforce with qualifications, it is likely that a significant number—particularly those who left school early—will need to enter study at the Certificate II level.
VET student employment outcomesOf VET students employed in food-related occupations six months after completing their training, the highest figure is for Food Trades Workers (including Bakers, Butchers and Cooks68), where 64 per cent of those employed had studied in a food-related field. For Farmers and Farm Managers the figure was 62 per cent.
68 Cooks are not a focus of this study.
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Table 10 Occupation of VET students employed six months after training by field of education, 2007 to 2012
Occupation after training (2-digit ANZSCO)
Proportion who had studied in a food-related field of education
In terms of VET students remaining in the same field for which they trained, there is a strong fit for workers within the meat sector (61.6 per cent), which is above the all-course average. There is a weak link between students who studied seafood courses and those working in related occupations six months later (just over 15 per cent). This suggests that there is considerable wastage in some occupations/industry sectors. Table 11 below shows the proportion of students who have completed a food-related training package in work or further study and whether they are in the same occupation as the course. This shows a relatively high proportion of students in further study or work within six months of completion, with a higher proportion in both the Food Processing and Meat Industry that are within the same occupation as the course studied.
Table 11 VET students in further study or work six months after training by training package, 2012
Training packageIn further study or work
(%)In same occupation as
course (%)
Food Processing Industry 88.2 56.9
Australian Meat Industry 95.1 61.6
Agriculture, Horticulture and Conservation and Land Management
88.2 28.7
Sugar Milling - -
Seafood 86.3 15.4
Animal Care and Management 88.0 38.4
TOTAL for all VET graduates in all training packages (2012)
Trends in higher education food-related coursesA number of Senate inquiries and state government reviews have explicitly examined the adequacy of current higher education and VET arrangements for the agriculture and food processing sectors. Generally, these reviews show a long-term decline in the number of students enrolling in and going on to complete degrees directly relevant to the food industry. The information below provides state and territory breakdowns to show where relevant courses are offered. The overall trends presented here mask differences between specific qualifications across individual institutions. It is also difficult to discern trends due to the ongoing rebadging and reconfiguring of higher education products in an attempt to stimulate student demand.Universities are able to make decisions about these matters based on student demand and the needs of employers. This makes it even more important to monitor student enrolments because if students are not choosing courses in areas where a shortage of supply has been identified, then additional levers might need to be used to ensure that the industry does not suffer from the imbalance.
Figure 8 below shows the state and territory spread of aggregated FoE course delivery by universities, showing both commencements and completions. It shows that New South Wales is a significant provider of higher education delivery for Agriculture courses, while not all states have universities that offer relevant courses. With the exception of New South Wales, Victoria and South Australia, all course numbers for undergraduates show relatively low levels of student participation.
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Figure 8 Undergraduate commencements and completions by field of education and state, 2011
Source: DIISRTE higher education data collection, unpublished. Note: Northern Territory data unavailable.
Table 12 shows that total undergraduate commencements have fallen by around 20 per cent over the last five years. Declines have occurred in each FoE, with the exception of Food Processing Technology.
Table 12 Higher education domestic commencements in fields of education directly related to food, 2011
2011 commencements
Fields of education directly related to food Postgraduate
Five-year % change Undergraduate
Five-year % change
Food Science and Biotechnology 95 –30 390 –30.0
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Food Processing Technology 45 104.5
Agriculture 184 3 806 –1.8
Horticulture and Viticulture 69 –15 145 –44.9
Aquaculture 13 30 16 –51.5
Farm Management and Agribusiness 22 340 52 –50.0
TOTAL 383 –8 1,454 –19
Source: DIISRTE higher education data collection, unpublished.69
Figure 9 shows a decline in total commencements, although with some fluctuations year on year. More recently for 2013, the highest level of undergraduate enrolments was reported with an increase of around 15 to 20 per cent for Agriculture degrees, although this is not yet shown in the official data.70
Figure 9Total food-related field of education undergraduate and postgraduate commencements, 2006–11
Source: DIISRTE higher education data collection, unpublished.
69 Values below five and percentage changes dependent on values below five have been removed from the table: Food Science and Biotechnology maps to the six-digit Australian Standard Classification of Education (ASCED) 019905 Food Science and Biotechnology; Food Processing Technology maps to the six-digit ASCED 030307 Food Processing Technology; Agriculture maps to the six-digit ASCEDs 050101 Agricultural Science 050105 Animal Husbandry 050199 Agriculture not elsewhere classified and 059999 Agriculture, Environmental and Related Studies not elsewhere classified; Horticulture and Viticulture maps to the six-digit ASCEDs 050301 Horticulture and 050303 Viticulture; Aquaculture maps to the six-digit ASCEDs 050701 Aquaculture and 050799 Fisheries Studies not elsewhere classified; Farm Management and Agribusiness maps to the six-digit ASCED 080321 Farm Management and Agribusiness.
70 Atkins J, 2013, ‘Students flock to agriculture courses’, The Australian, 19 January, p. 3.
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In terms of higher education completions, Table 13 shows a decline in 2011 of around 20 per cent against the previous five years. Commencements in all fields of education declined with the exception of Agriculture.
Table 13 Higher education domestic completions in fields of education directly related to food, 2011
2011 completions
Fields of education directly related to food Postgraduate
Five-year % change Undergraduate
Five-year % change
Food Science and Biotechnology 52 –32 254 –38
Food Processing Technology 7 –30
Agriculture 169 42 490 15
Horticulture and Viticulture 37 –8 125 –35
Aquaculture 11 –83
Farm Management and Agribusiness 11 38 38 –63
TOTAL 269 7 925 –23
Source: DIISRTE higher education data collection, unpublished.
Higher education student outcomesOf bachelor degree graduates in the Agriculture field of education who were available for full-time work, fewer were likely to be in full-time employment four months after completion compared to the average for all fields of education. The median salary for these graduates was also lower than average ($47,000 compared with $50,000). There are also lower salaries in food-related occupations relative to other science-based occupations, such as those offered in the mining industry. Both factors may be contributing to lower levels of graduate enrolments. Due to the survey sample size, student outcomes are not available to the same level of disaggregation as information about commencements and completions.
Analysis of the 2011 Australian Graduate Survey indicates that those who graduated from food-related fields of education were much less likely to be working in Professional occupations, and much more likely to be working as Labourers, than the average for all fields.In 1980, Agricultural Science graduates earned the fifth-highest salary after graduation (out of 20 FoE). By 2011, this had fallen to 18th (out of 23 fields).71
Supply through migrationMigration is an important source of skilled (and unskilled) workers for the industry, particularly in regional areas with seasonal labour requirements. This section contains migration visa data for various visa categories that relate to the food workforce. These include:
• employer-sponsored 457 visas• labour agreements• temporary working holiday visa categories• the Seasonal Worker Program.
A general skilled migration visa category is also available but currently has only a limited number of eligible skilled occupations listed which are relevant to the food workforce.Employer-sponsored 457 visas
Analysis of the number of employer-sponsored 457 visas granted for food workforce skilled and semi-skilled occupations between 2005 and 2011 shows:71 Graduate Careers Australia, 2012, Graduate salaries report 2012, Graduate Careers Australia, Supplementary Table H.
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• relatively low demand from employers directly sourcing occupations such as Farmers (all occupational categories) and Food Science-related occupations
• a significant number of Production Engineers, although this may include demand from Mining and other industries
• steady demand for variously classified Meat Workers.Labour agreements
A labour agreement is a formal arrangement negotiated between an employer and the Australian Government. It provides a flexible, tailored skilled migration arrangement for businesses and sectors with specific needs that sits outside the mainstream skilled migration program. A labour agreement is only considered where a genuine skills shortage exists and there are no suitably qualified or experienced Australians readily available. Labour agreements also require additional regulation beyond a standard business sponsorship to ensure that employers satisfy their obligations regarding training and employing local workers, and avoid the exploitation of overseas workers. The meat industry labour agreement (MILA) is a ‘template’ arrangement which means that the same terms and conditions are offered to all employers across the industry, and the parameters around the pay, skill and English language levels of sponsored workers are non-negotiable. The template ensures a level playing field across an industry by cementing the terms, conditions, concessions and occupations which will apply to all future labour agreements in that industry. The MILA allows for the non-ANZSCO occupation of ‘Skilled Meatworker’ to be sponsored initially under a subclass 457 visa—the occupation is a hybrid of the ANZSCO occupations of Slaughterer and Boner and Slicer. After four years, and subject to meeting requirements, subclass 457 visa holders may transition to employer-sponsored permanent residence. There are currently 22 MILAs in effect with Australian meat processing companies and a further five under negotiation. Overseas workers employed under a MILA must be paid the Temporary Skilled Migration Income Threshold, currently set at $51,400, unless Australian employees are paid a higher salary. If Australian employees are paid a higher salary, overseas workers must be paid the same.The Australian pork industry is also emerging as a key user of labour agreements for pork production, in addition to processing. Pork producers broadly have evidenced strong demand for the hybrid occupation of ‘Senior Piggery Stockperson’ which requires a mix of supervisory, technical and para-veterinary skills. Labour agreements have been able to meet this need— four agreements have been approved and a further five are under negotiation. The Australian fishing industry is another user of labour agreements. The occupations of Deck Hand and Fishing Hand are considered semi-skilled, but the industry has a history of difficulty in attracting skilled Australians to these jobs. The work is often seasonal and involves long periods at sea and away from home. Without a full crew complement, vessels cannot put to sea, which in turn affects the livelihood of Australians and Australia’s ability to maximise its natural resources. There are currently nine fishing labour agreements in place and a further two under negotiation. Working holiday makers
The industry regards temporary working holiday makers (more colloquially known as ‘backpackers’) as critical to meeting seasonal demand for a number of agriculture commodities. The visa classes that apply are as follows:
• All working holiday makers, both Working Holiday (subclass 417) and Work and Holiday (subclass 462) visa holders, may work for the full duration of their 12-month stay in Australia, but may not remain with any one employer for longer than six months.
• In 2005, a second Working Holiday visa initiative was introduced that allows first-time Working Holiday (subclass 417) visa holders to undertake 88 days specified work in regional Australia during their stay to acquire eligibility to apply for a second such visa.72 Specified work includes
72 Regional Australia excludes the ACT, Sydney, Newcastle, the Central Coast and Wollongong, Greater Brisbane area and the Gold Coast, Melbourne metropolitan area and Perth and surrounding area. See immi.gov.au/visitors/working-holiday/417/postcodes.htm.
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work in the Agriculture, Mining and Construction industries.
There was an increase in all Working Holiday visa categories between 2007–08 and 2011–12, with a total increase of 65,162 or 41.3 per cent to 222,992 visas. Seasonal Worker Program
Between February 2009 and September 2012 the Australian Government piloted a Seasonal Worker Program, with the following results:
• 1,633 visas were granted under the pilot• 22 organisations became approved employers for the pilot • seasonal workers were placed in 35 locations across all states and the Northern Territory• seasonal workers were recruited from Timor-Leste, Kiribati, Papua New Guinea, Samoa, Tonga
and Vanuatu.
Following the pilot, the Seasonal Worker Program has 12,000 places available over the next four years and is open to workers from nine participating countries: Kiribati, Nauru, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste, Tonga, Tuvalu and Vanuatu.The Australian Government is also running a three-year trial of the use of seasonal workers in selected regions, with accommodation providers, aquaculture ventures, and cotton and cane growers. Specific regions throughout Australia have been selected for each industry in the trial.
First-time seasonal workers recruited under the Seasonal Worker Program will have an opportunity to receive training in Australia in basic English literacy and numeracy, basic information technology skills and first aid. Returning seasonal workers will have the opportunity to complete a Recognition of Prior Learning assessment against competencies at Certificate I or II levels.The Department of Education, Employment and Workplace Relations (DEEWR), the lead agency for the program, will report to the Australian Government in late 2014 on the take-up and outcomes of the trial to inform program refinements.
Future outlook (medium and longer term)
Demand outlook for output, exports and employmentMedium-term agriculture projections to 2018In March 2013, ABARES released forecasts to 2017–18 for all major agricultural commodities produced in Australia.73
Overall, the index of farm production was projected to grow by 8.2 per cent over the outlook period. Fisheries production is expected to increase slightly during this period.Grain and oilseed production was forecast to increase in response to strengthening demand during the outlook period. Wheat production was projected to rise by 1 per cent per annum, largely as a result of yield growth. Production of coarse grains and oilseeds was projected to rise by 3 per cent and 1 per cent per annum respectively, as a result of increases in yields and planted areas. Exports of grain and oilseeds were forecast to increase through this period, but wheat exports were not expected to return to the high levels of 2011–12.73 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Agricultural commodities: March quarter 2013,
ABARES, Canberra.
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In response to strengthening global demand, sugar production was projected to increase at 1.4 per cent per annum to 4.9 million tonnes by 2017–18, while exports rise to 3.5 million tonnes. These levels of production and exports are well above those of 2012–13, but below those of 2004–05.The real gross value of production of fruit and vegetables was projected to increase by 1 per cent per annum to 2017–18, primarily meeting domestic demand. Exports of some products, including pulses, tree nuts and oranges were expected to push the total value of fruit and vegetable exports to increase by 1 per cent per annum to 2017–18.Beef and veal production was forecast to increase to 2.3 million tonnes in 2017–18, 2 per cent more than in 2013–14, although the size of the herd was forecast to remain largely unchanged. Export volumes were forecast to grow by 4 per cent to 1.04 million tonnes during this period, while the real value of exports was forecast to contract by 7 per cent. Exports of live cattle were also forecast to continue to grow over the forecast period, but at levels remaining below those of 2010–11.Sheep meat production was forecast to expand by 1.2 per cent per annum during the five years to 2017–18 with an expected expansion of the sheep flock to supply a higher level of slaughtering. Lamb production in 2017–18 was forecast at 462,000 tonnes, the highest on record, but mutton production, forecast to increase to 167,000 tonnes, was expected to remain well below the levels of the 1990s. Exports of sheep meat were forecast to increase by 5 per cent per annum through the next five years.Pig meat and poultry meats are produced in Australia largely for the domestic market, where their consumption is growing at the expense of red meats. Exports of these meats are relatively small and are primarily to the Asia-Pacific region. Production of pig meat was forecast to expand by 1 per cent per annum to reach 360,000 tonnes in 2017–18, with around one-third of the expanding consumption being processed pork products met by imported pig meat. Production of chicken meat was forecast to grow at a faster rate, around 3 per cent per annum, to reach 1.2 million tonnes in 2017–18. Milk production was forecast to increase by 1 per cent per annum to reach 9.9 billion litres by 2017–18. This increase was expected to be largely in the market milk sector, with production of manufacturing milk forecast to increase only slightly during this period. The volume of exports of butter, cheese and skim milk powder were projected to contract during the outlook period and the real value of exports decline by an average of 2 per cent per annum.The gross value of fisheries production was forecast to increase slightly, in real terms, during the outlook period to $2.45 billion in 2017–18. Increased production of salmonids, particularly from Tasmanian aquaculture, was forecast to drive the increase. The value of fisheries exports, excluding pearls, was projected to expand, in real terms to $982 million in 2017–18.
Projected developments in agriculture production to 2050A version of the ABARES agrifood model has been used to project the global supply of, and demand for, food to 2050.74 Developments to 2050 were first projected under a reference scenario.In Linehan et al., 2013, ABARES projected the real value of world agrifood consumption to be 75 per cent higher in 2050 than in 2007.75 Production increases are likely to be constrained by resource availability. However, projected annual growth in total factor productivity (TFP) of around 1 per cent per annum for the world as a whole will be the key to increased production.An 11.5 per cent increase in real prices was projected between 2007 and 2050. However, agrifood prices rose considerably between 2007 and 2012, which means the projected price increases to 2050 represent a marginal increase from 2012. Price increases were projected to be greatest for fishmeal and oil and fish, because of the prospects for little production increase from wild fisheries capture. Prices of meat, vegetable oils and cereals were also expected to increase.
74 Linehan V, Thorpe S, Gunning-Trant C, Heyhoe E, Harle K, Hormis M and Harris-Adams K, 2013, ‘Global food production and prices to 2050: Scenario analysis under policy assumptions’, paper presented ABARES Outlook Conference, Canberra, 5–6 March 2013; Linehan V, Thorpe S, Andrews N, Kim Y and Beaini F, 2012, ‘Food demand to 2050: Opportunities for Australian agriculture’, paper presented at ABARES Outlook Conference, Canberra, 5–6 March 2013.
75 Linehan V, Thorpe S, Gunning-Trant C, Heyhoe E, Harle K, Hormis M and Harris-Adams K, 2013, ‘Global food production and prices to 2050: Scenario analysis under policy assumptions’, paper presented at ABARES Outlook Conference, Canberra, 5–6 March 2013, p. 1.
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Developing countries were projected to be the main source of growth in global agrifood production. Production in Australia, although accounting for only a modest share of world agricultural production, was also expected to continue to increase, largely driven by productivity gains.The real value of Australian production of the agrifood commodities was projected to be around 77 per cent higher in 2050 than in 2007.76 Annual increases were projected for beef and wheat at 1.4 per cent; milk and manufactured dairy products at 1.5 per cent; fruit at 0.9 per cent; and sheep meat at 2 per cent.
Figure 10 Australian agrifood production, 2007 and 2050
Source: Linehan V, Thorpe S, Andrews N, Kim Y and Beaini F, 2012, Food demand to 2050, Canberra.
The real value of Australia’s exports of agrifood products in 2050 was projected to be 140 per cent higher than in 2007.77 The largest increases were projected to be for beef, wheat, dairy products, sheep meat and sugar.
76 Linehan V, Thorpe S, Andrews N, Kim Y and Beaini F, 2012, ‘Food demand to 2050: Opportunities for Australian agriculture’, paper presented at ABARES Outlook Conference, Canberra, 5–6 March 2013, p. 1.
77 Linehan V, Thorpe S, Andrews N, Kim Y and Beaini F, 2012, ‘Food demand to 2050: Opportunities for Australian agriculture’, paper presented at ABARES Outlook Conference, Canberra, 5–6 March 2013, p. 1.
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Figure 11 Australian agrifood exports, 2007 and 2050
Source: Linehan V, Thorpe S, Andrews N, Kim Y and Beaini F, 2012, Food demand to 2050, Canberra.
In addition to the reference scenario, two alternative scenarios were modelled in Linehan et al., 2013.78 The first alternative model assumed trade liberalisation with stronger productivity growth, and the second assumed the reduced use of food crops to produce biofuels.Under assumptions of trade liberalisation and higher productivity growth, the global value of production and value of trade were higher than under the reference scenario. Australian agrifood production was projected to increase by 86 per cent under the trade liberalisation scenario compared to 76 per cent under the reference scenario.79 The projected rise in the real value of exports was also higher under the trade liberalisation scenario, at 166 per cent, compared with 142 per cent under the reference scenario.80 Exports of vegetables and fruit in particular were projected to expand under this scenario, driven by projected strong demand from Asian countries.In the second alternative scenario with assumed reductions in the use of food crops for biofuel production in the United States and Europe, reduced demand for maize and rapeseed (canola) would reduce prices for grains and oilseeds on world markets, compared with the reference scenario.
78 Linehan V, Thorpe S, Gunning-Trant C, Heyhoe E, Harle K, Hormis M and Harris-Adams K, 2013, ‘Global food production and prices to 2050: Scenario analysis under policy assumptions’, paper presented at ABARES Outlook Conference, Canberra, 5–6 March 2013.
79 Linehan V, Thorpe S, Gunning-Trant C, Heyhoe E, Harle K, Hormis M and Harris-Adams K, 2013, ‘Global food production and prices to 2050: Scenario analysis under policy assumptions’, paper presented at ABARES Outlook Conference, Canberra, 5–6 March 2013, p. 14.
80 Linehan V, Thorpe S, Gunning-Trant C, Heyhoe E, Harle K, Hormis M and Harris-Adams K, 2013, ‘Global food production and prices to 2050: Scenario analysis under policy assumptions’, paper presented at ABARES Outlook Conference, Canberra, 5–6 March 2013, p. 16.
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Implications for employmentBetween 1977–78 and 2010–11, the volume of farm output more than doubled at an average annual rate of 2.1 per cent. Crop production expanded by 3.5 per cent annually, showing much faster growth than livestock production which grew by 0.6 per cent annually. Exports of wheat increased from 8 million tonnes in 1977–78 to 25 million tonnes in 2011–12, while exports of beef and veal expanded from 1,138 kilotonnes to 1,397 kilotonnes over the same period.Despite these increases in production and exports between 1977–78 and 2010–11, the use of inputs in broadacre agriculture contracted by an average annual rate of 0.9 per cent.The use of labour declined faster than other inputs at 2.1 per cent per annum. Employment in all agriculture contracted by 11 per cent between 2006 and 2011, an average annual rate of 2.1 per cent.In the medium and longer term, agricultural production is projected to continue expanding. The index of farm production is projected to be 8.2 per cent higher in 2017–18 than in 2012–13,81 while the real value of production is projected to be 77 per cent higher in 2050 than in 2007.82
If, as the modelling has suggested, the projected production increases will be driven mainly by increases in productivity, there would be limited prospects for employment in agriculture to increase. Increases in farm size and ongoing capital deepening are likely, and technology will become more sophisticated, further increasing the skill level required of the workforce in agriculture.Productivity growth depends on the ability of farmers to effectively manage new technologies, and this ability will be underpinned by the continued development and maintenance of skills in the agricultural workforce.DEEWR employment projections to 2017
Appendix B, Table 31, shows DEEWR employment projections to 2017 for the Agriculture, Forestry and Fishing industry and its subdivisions; and Appendix B, Table 32, shows DEEWR employment projections to 2017 for the food and beverage subdivisions within the Manufacturing industry. DEEWR employment projections suggest a continuation of historical trends, with a decline in agriculture production employment and a slight increase in food processing employment over the next five years. Employment in the Agriculture, Forestry and Fishing industry is projected to decrease by a further 13,500 (or 4.2 per cent) over the five years to 2017. This reflects a continuation of the industry’s long-term decline in employment share, as well as the impact of a relatively high Australian dollar and its effect on export prices, and continued investment by the industry in labour-saving plant and equipment.83 Subsectors with the highest projected employment growth are Nursery and Floriculture Production, Agriculture Support Services and Aquaculture. Manufacturing employment is projected to grow marginally, by 14,200 (or 1.5 per cent) over the five years to 2017. This very small projected increase is much lower than the all-industries average of 7.1 per cent, and will therefore see the industry’s share of employment continue to decrease, consistent with long-term structural change in the labour market.84 DEEWR projects Food Product Manufacturing subdivision employment to grow by just 2,300 (or 1.2 per cent per annum), and Beverage and Tobacco Manufacturing is expected to grow by 1,000 (or 4.2 per cent per annum). The largest employment growth is expected in Dairy Product Manufacturing and Beverage Manufacturing. Sectors expected to significantly decline are Seafood Processing and Fruit and Vegetable Processing.Appendix B, Table 33, shows projected employment growth by occupation to 2017. On average,
81 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Agricultural commodities: March quarter 2013, ABARES, Canberra, p. 23.
82 Linehan V, Thorpe S, Andrews N, Kim Y and Beaini F, 2012, ‘Food demand to 2050: Opportunities for Australian agriculture’, paper presented at ABARES Outlook Conference, Canberra, 5–6 March 2013, p. 1.
83 Department of Education, Employment and Workplace Relations, forthcoming, Industry Employment Projections 2013 report, Canberra.
84 Department of Education, Employment and Workplace Relations, forthcoming, Industry Employment Projections 2013 report, Canberra.
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employment of Farmers and Farm Managers is expected to fall by 7.4 per cent per annum to 2017. The professional and technical/trade occupations are expected to continue to grow over the five years to 2017, with the exception of Agricultural and Forestry Scientists, Chemists, and Food and Wine Scientists, and Agricultural Technicians, Butchers and Smallgoods Makers, and Agriculture, Forestry and Horticulture Operators, which are projected to experience employment declines. Within the labouring occupations, employment is expected to grow in seven of the 15 occupations listed, with the strongest growth expected for Garden and Nursery Labourers and Aquaculture Workers.AWPA employment projection modelling to 2025
With a view to avoiding skills shortages, improving productivity and enhancing participation, AWPA has developed a suite of scenarios for Australia to 2025 as a basis for modelling Australia’s workforce needs and developing policy to help meet those needs. The four scenarios—Long Boom, Smart Recovery, Terms of Trade Shock and Ring of Fire—outline possible, plausible futures for Australia that help us to plan for an uncertain world.
• In the Long Boom scenario, the high demand for resources traded with China and other countries continues. Industries challenged by the high terms of trade undertake structural adjustment. This results in a scenario of sustained prosperity and a restructured economy.
• In Smart Recovery, the challenges facing Europe and the United States affect financial markets. This means low growth for Australia to 2014–15. Growth then improves and Australia benefits from industry and government strategies to implement a knowledge economy.
• In Terms of Trade Shock, resource prices fall mainly due to increased supply from other countries, the Australian dollar falls and we move to a broader-based economy.
• Ring of Fire is a risky world with multiple economic and environmental shocks resulting in ongoing lower growth.
Economic modelling against each of these four scenarios was undertaken by Deloitte Access Economics to determine the skills demand for the economy into the future.85
The scenarios recognise the opportunities for agricultural exports from the growth in demand in Asia. In the future, in addition to supplying resources to underpin Asia’s industrial expansion, Australia will have a further opportunity to benefit through the provision of other goods and services, particularly in those sectors in which we have a competitive advantage such as in agricultural exports and education services. The scenarios suggest that the relative certainties facing Australia’s future are an ageing population, the key role of Asia, and increasing take-up of technology. However, there are significant differences in industry structure depending on which scenario eventuates. Environmental impacts and levels of protectionism are two factors that vary across the scenarios and that would result in different outcomes for the future of Australia’s food industry. An overview of the scenario modelling data for employment projections in 2025 is presented below. Appendix B, Table 34, shows detailed industry-level employment projections to 2025 as modelled for the various AWPA scenarios. It shows that employment within the Agriculture and Fishing industry is projected to grow in only one of the scenarios, the Long Boom, at an average of 0.4 per cent per annum. Employment is expected to decline slightly (by –0.4 per cent per annum) in both the Smart Recovery and Terms of Trade Shock scenarios, and significantly (by –1.6 per cent per annum) under the Ring of Fire scenario. For the food and beverage manufacturing subdivision, employment is expected to fall under all scenarios with the exception of Ring of Fire, which possibly reflects the protectionist trading assumptions within this scenario. At the subsector level within agriculture, employment growth is projected for two sectors across all four scenarios: Poultry Farming and Other Crop Growing. Employment is projected to grow under three of
85 A description of the scenarios and the Deloitte Access Economics modelling of employment in each, with state and territory breakdowns, is available at the AWPA website, awpa.gov.au.
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the four scenarios in the following sectors: Mushroom and Vegetable Growing, Sheep, Beef Cattle and Grain Farming, Aquaculture, Dairy Cattle Farming and Agriculture and Fishing Support Services. For manufacturing, the only sector where growth is projected under each scenario is Beverage Manufacturing. The majority of sectors are projected to have employment declines across all four scenarios.Appendix B, Table 35, shows employment projections to 2025 for key occupations at the ANZSCO four-digit level as modelled for the various AWPA scenarios. It shows that employment growth is projected across all scenarios for six occupations: Livestock Farmers, Production Managers, Agricultural and Forestry Scientists, Bakers and Pastrycooks, Butchers and Smallgoods Makers, and Aquaculture Workers. For a number of process worker occupations, employment is projected to decline across all scenarios, which possibly reflects increased use of technology and the capital intensity of work, which in turn are projected to lead to higher levels of labour productivity.
Replacement rates and projected job openings to 2025 for selected food workforce occupationsAWPA has undertaken an assessment of net replacement rates and replacement demand for occupations in the food workforce to 2025.86 Net replacement rates estimate demand for new entrants to an occupation resulting from workers leaving the occupation net of those re-entering. By implication net replacement demand provides an estimate of demand for new entrants with qualifications at a certain level.87 Additional demand resulting from employment growth also contributes to the number of job openings for new entrants. Table 15 provides a breakdown of food workforce occupations at the ANZSCO four-digit level. This shows projected demand for new entrants to 2025. The number of total job openings is the sum of expansion demand resulting from projected employment growth plus net replacement demand. This replacement requirement is particularly significant in industries where there are high numbers of people retiring or leaving the occupation.Under all four scenarios, the occupations Livestock Farmers, Production Managers, Crop Farmers, and Livestock Farm Workers have the highest number of job openings to 2025. For farming occupations, more job openings are created by replacement demand than by new job growth. For example, for Livestock Farmers, Crop Farmers and Mixed Crop and Livestock Farmers in the Long Boom world, it is expected that the majority of job openings to 2025 will come from replacement requirements. This is attributable primarily to the age profile of the industry workforce, with the majority of current workers aged 45 years or older. For other occupations with high job openings, there is high demand for Garden and Nursery Labourers in most scenarios, while the number of job openings for Food and Drink Factory Workers increases under the Ring of Fire trade protection scenario. For Agriculture Scientists and Agricultural Technicians, although comparatively smaller in terms of total job openings, they do increase under the Long Boom higher exports scenario.
Table 15 Replacement rates and projected total job openings to 2025 resulting from replacement demand and employment growth
ANZSCO Occupation Projected net
replacemen
Total job openings
Long Smart Terms Ring of
86 The AWPA methodology is based on the 2006 and 2011 censuses of Population and Housing. A correction for shrinking occupations is applied to the census data and corrections for changes in the business cycle and age-related structural changes in the labour force are made on the basis of the ABS Labour Force Survey.
87 Meat boners and slicers, and slaughterers have the highest net replacement rate of the occupations analysed.
Demand/supply balance of qualificationsTable 16 below shows the balance (non-cumulative) between supply and demand of qualifications for key occupations in 2025 as modelled for the various AWPA scenarios.
Table 16 Balance between supply and demand of new qualifications for key occupations in 2025
Long BoomSmart
RecoveryTerms of
Trade Shock Ring of Fire
Aquaculture Farmers 238 232 231 204
Crop Farmers –1,300 –800 –818 –408
Livestock Farmers –4,405 –2,784 –2,946 –1,782
Mixed Crop and Livestock Farmers –1,556 –1,003 –948 –574
Production Managers –3,894 –2,943 –3,463 –2,570
Chemists, and Food and Wine Scientists 799 799 736 772
Agricultural and Forestry Scientists –136 –81 –104 –70
Agricultural Technicians 790 778 742 676
Bakers and Pastrycooks 516 729 561 565
Butchers and Smallgoods Makers 443 543 435 451
Livestock Farm Workers 623 888 836 947
Mixed Crop and Livestock Farm Workers 1,396 1,359 1,351 1,198
Other Farm, Forestry and –275 –231 –234 –51
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Garden Workers
Aquaculture Workers 315 305 303 270
Crop Farm Workers 99 200 190 243
Food and Drink Factory Workers 1,402 1,526 1,459 1,292
Meat Boners and Slicers, and Slaughterers 138 199 168 121
Meat, Poultry and Seafood Process Workers 3,333 3,313 3,259 2,904
Table 16 is a snapshot of qualifications demand/supply balance in 2025 for identified key food and beverage industry workforce occupations at the ANZSCO four-digit level. As outlined in AWPA’s Future focus, 2013 National Workforce Development Strategy, the modelling assumes an increase in the propensity of multiple qualification holding and shows that demand is expected to be strongest at the higher qualification levels. This shows a shortfall in the number of qualifications for occupations such as Crop Farmers, Livestock Farmers, Mixed Crop and Livestock Farmers, Production Managers, and Agricultural and Forestry Scientists across all scenarios. The higher number of qualifications for many food processing worker occupations could reflect multiple qualifications through upskilling and or skills deepening for these occupations.
Stakeholder feedback on scenario modellingThe AWPA scenarios assume that output in the agriculture and food processing sectors responds to an expected rise in demand for food driven by the increase in incomes in Asian countries. Both the Long Boom and Terms of Trade scenarios mention this in their overviews.88 There is of course considerable uncertainty about the timing and size of additional regional demand, and of the Australian food industry’s response. For example, in a National Food Plan proposed by the Australian Government in mid-2013, there were specific targets for food output and industry productivity. Broadly, the plan targeted a 45 per cent increase in the volume of commodity and processed food exports by 2025, and a 30 per cent increase in productivity. Assuming production for domestic consumption grows at roughly the same rate of export production, these targets would imply a marked increase in the size of the labour force in these industries by 2025. This is a somewhat stronger employment outcome than inferred in AWPA’s current long-term forecasts published in Future focus.Feedback from stakeholders on the AWPA employment scenarios was mixed, with some suggesting the potential growth in meat and dairy industries is not fully translated into the projected employment levels. Other stakeholders emphasised that future employment growth in both agriculture and food processing is not guaranteed, even with Australia’s apparent proximity to potential growth markets. Future modelling exercises can examine these issues in more detail. We need to recognise the risk, however, that employment growth in food production and processing may be stronger than projected and that this is not being adequately factored into workforce planning and development in these sectors. Other material in this report also suggests the skill levels required may well be more demanding than currently expected.88 See Australian Workforce and Productivity Agency, 2013, Future focus, 2013 National Workforce Development Strategy,
AWPA, Canberra. Available at awpa.gov.au/our-work/national-workforce-development-strategy/Pages/default.aspx.
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In each scenario there are opportunities for the Australian food production industry. The purpose of this study is to investigate what actions will ensure that the food production workforce best places us to take advantage of those opportunities.
Supply and demand imbalances—occupational focusAWPA’s approach to assessing skill imbalancesThe approach used in this analysis focuses on key occupations and assesses a range of supply and demand indicators to determine whether there is a current or likely future skill imbalance (shortage or oversupply of skilled workers). The analysis focuses on the top employing occupations at the ANZSCO four-digit level for each industry sector (Agriculture and Fishing; and Food and Beverage Manufacturing). Occupations are assessed against a suite of indicators AWPA uses to determine its Specialised Occupation List (SpOL) and from an AWPA-commissioned study undertaken by the National Institute of Labour Studies.89 AWPA assessed a wide range of indicators, covering variables such as historical and projected employment growth, job vacancies, earnings, turnover, graduate outcomes, hours worked and visas issued. AWPA’s approach to workforce planning focuses on specialised occupations—those occupations where specialised skills, learned in formal education and training, are needed at entry level and in which the impact of market failure is potentially significant. AWPA considers that, for other occupations (where there is not a close relationship between particular levels and fields of qualifications and the occupations that graduates end up in), market forces should generally be effective in matching supply and demand. That said, it is still likely that improved matching of education and training to occupational destination is likely to improve productivity and worker satisfaction. Only two of the occupations listed below meet AWPA’s criteria to be classified as a specialised occupation: Agricultural Scientists and Veterinarians. However, other occupations have been included here in recognition that, for industry workforce development, there is value in looking at both specialised and non-specialised occupations.90 This is important in the food industry given the interdependencies in the supply chain discussed earlier.Further information on occupations in demand and current skills shortages is included in the annual Environment Scan produced by AgriFood Skills Australia.
Assessment of Manager and Professional occupationsKey occupations at the Manager and Professional level are assessed below in terms of supply and demand (see also Table 17).Farmers and Farm Managers
The category of Farmers and Farm Managers comprises around 172,200 employees across the following occupations: Livestock Farmers, Crop Farmers, Mixed Crop and Livestock Farmers (Mixed Farmers), and Farmers and Farm Managers (nfd). Livestock Farmers are the largest employing occupation with around 80,000 employees. In the past five years there has been a significant decline in employment: employment of Crop Farmers fell by 18.2 per cent, Livestock Farmers by 14 per cent and Mixed Farmers by 11 per cent. Contrary to this trend, Farm Managers (nfd) increased some 73 per cent (however, this may be an effect of ABS Labour Force Survey data collection and classification issues). Projected employment growth is also 89 Mavromaras K, Healy J, Richardson S, Sloane P, Wei Z and Zhu R, 2013, A system for monitoring shortages and surpluses in
the market for skills: Final report to the Australian Workforce and Productivity Agency (AWPA) by the National Institute of Labour Studies, AWPA, Canberra.
90 Australian Workforce and Productivity Agency, 2013, Future focus, 2013 National Workforce Development Strategy, AWPA, Canberra, pp. 45–46.
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negative (between 1.5 and 2 per cent over the next five years). The occupational unemployment level for farming occupations is currently below the national average. Internet job vacancies over the last 12 months were stable, with the exception of Crop Farmers where there has been a 39.5 per cent fall. Median earnings per week are below the national average ($931 in 2011), with an increase over the past five years on par with the national average (18 per cent), except for Mixed Farmers (121 per cent increase) and Farm Managers (nfd)—again, this may be an effect of survey data collection. Graduate earnings are also below the national average. The change in hours worked against the previous year is mixed, although there is again an increase for Farm Managers (nfd). In relation to DEEWR’s skills shortage research, based on its Survey of Employers who Recently Advertised, Farm Managers were most recently assessed in December 2012 and were rated as not being in shortage. The report notes the sample was only small in scale, and focused on Farm Managers as opposed to other farming occupations. There was an average of three suitable applicants per vacancy, with the majority being for Livestock Farm Manager positions. Employers sought experienced applicants, but only 22 per cent of those surveyed held suitable qualifications. Employers also noted that there was limited transferability of skills between crop and livestock farming. Employers reported that where vacancies were difficult to fill, this related to terms and conditions of employment, particularly when recruiting near mining operations.91
Agricultural Scientists
There are around 8,900 people employed in Australia as Agricultural Scientists, with only around 27 per cent of these classified as working within the Agriculture and Fishing industry sectors. The majority are classified within the Professional, Scientific and Technical Services industry classification; however, they may provide services to the agriculture sector.In the past five years there has been a 28 per cent increase in employment of Agricultural Scientists. Employment is projected to increase over the next five years by 2.5 per cent. The occupational unemployment rate is low and internet job vacancies fell some 35 per cent in the last 12 months. Labour turnover is also lower than the all-industries average. The median weekly wage is around one-third higher than the average, although it increased at a slower rate over the last five years. Graduate earnings for Agricultural Scientists are lower than the average for all graduates, and increased at a lower rate than the average (2.6 per cent against 5.2 per cent). Analysis of data for Agricultural Scientists at the ANZSCO six-digit level from the 2011 census shows that, of those persons working as Agricultural Scientists with qualifications and who are in the 20 to 29-year age cohort, 52 per cent have a bachelor degree or above in the field of Agricultural Science. From the qualification perspective, 20 per cent of those persons with a bachelor degree or above in Agricultural Science as their highest qualification were employed as Agricultural Scientists. The proportion of graduates working full time is much higher than the average, 90 per cent against 65 per cent. There has also been a significant increase (57 per cent) in working hours compared to the previous year. In relation to DEEWR’s skills shortage research, the Agricultural Consultant Scientist92 occupation was most recently assessed in September 2012 and rated as not being in shortage. The survey suggested most vacancies attracted suitable applicants. The majority of employers surveyed were from private consulting firms, and the data excluded vacancies for sales-orientated Agronomists. Most vacancies required formal qualifications that varied, along with levels of field experience, and experience was generally not interchangeable between sectors. Recruitment was easier in 2012, with the proportion of vacancies filled 87 per cent compared to 45 per cent in 2011, and 13.9 applicants and 2.5 suitable applicants in 2012 compared with 6.1 applicants and 1.4 suitable applicants in 2011. Most employers surveyed commented there were insufficient numbers of graduates entering the occupation, and
91 Department of Education, Employment and Workplace Relations, 2012, Farm Managers ANZSCO 121 (part) December, unpublished.
92 Department of Education, Employment and Workplace Relations, 2012, Occupational skill shortages information, Agricultural Consultant Scientist (23410–11, 12), DEEWR, Canberra.
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15 per cent said there was difficulty recruiting Agronomists in remote locations. Chemists, and Food and Wine Scientists
Chemists, and Food and Wine Scientists study the chemical and physical properties of substances, develop and monitor chemical processes and production, develop new and improve existing food products, and plan and coordinate the production of wine and spirits.93 Only 18 per cent of the workforce operates within the agrifood sector. Historically, the occupation has experienced strong growth (25.6 per cent over the past five years); however, employment is projected to decline by 1.3 per cent over the next five years. Labour turnover of 9.7 per cent is lower than the national average (13.1 per cent). The median weekly earnings are $1,220 which is significantly higher than the national average. Over the last five years weekly wages have grown by 13 per cent. Just over 80.4 per cent of graduates are working in full-time employment. Land Economists and Valuers
There are 11,600 people employed in this occupation. Employment is down by 23.2 per cent over the last five years but is projected to increase by 3 per cent over the next five years. There has been a decline in the number of internet vacancies of 12 per cent in the last year. Average weekly earnings are around one-third third higher than the average and increased at the average level over the past five years. Graduate earnings are lower than the average and have increased at a lower than average rate in the last year. Average hours worked increased over the last year. Over the past five years, domestic higher education completions in Land Economics decreased by 8.4 per cent, indicating that supply may not keep up with replacement demand. Land Economists and Valuers were included on AWPA’s 2013 Skilled Occupation List for migration purposes.Veterinarians
There are 8,500 Veterinarians across Australia.94 Employment growth has been strong at 21.3 per cent compared to an average across all occupations of 4.9 per cent over the past five years. The occupational unemployment rate for veterinarians is 0.5 per cent which is significantly less than the national average. Employment is projected to grow by 10.4 per cent over the next five years. The median earnings per week in 2011 for Veterinarians was $1,450 which was an increase of 32 per cent over the previous five years. The recent graduate salary of Veterinarians ($45,000) is similar to the national average of $45,120. However, 91.9 per cent of veterinary graduates are working full time compared to the national average of 65.8 per cent. The domestic student completion rate growth for Veterinarians is at 5.9 per cent, which is higher than the national average of 2.8 per cent. There is also a high level of concordance (of 81.5 per cent) between the main field of education graduates studied and the occupation they work in.DEEWR’s skills shortage research shows that there is no shortage of Veterinarians in either 2011 or 2012. The research found that there was more than adequate numbers of new graduates entering the industry, but employers recruiting more experienced workers may have faced challenges. Vacancies were mainly for full-time positions, with a smaller number offering flexibility of part-time work, and 60 per cent of vacancies were in regional areas. There were on average 3.6 suitable applicants per vacancy in metropolitan areas and 1.7 in regional areas. Veterinarians were included on the 2013 Skilled Occupation List for migration purposes.Production Managers
Production Managers consists of three ANZSCO six-digit occupations, for Manufacturing, Mining and Forestry. The Production Manager (Manufacturing) is the largest employing occupation within this classification. However, the Production Manager (Mining) classification is currently rated in shortage and this may have an impact on the aggregated occupation. 93 Australian Bureau of Statistics, ANZSCO–Australian and New Zealand Standard Classification of Occupations, 2013, Version
1.2, abs.gov.au/ausstats/[email protected]/Product+Lookup/1220.0~2013,+Version+1.2~Chapter~ UNIT+GROUP+2342+Chemists,+and+Food+and+Wine+Scientists, accessed 28 August 2013.
94 These figures are for all Veterinarians, including those who may not be involved in treating animals for food production.
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Over the past five years there has been a 26 per cent increase in employment of Production Managers, and employment is projected to increase a further 5 per cent in the next five years. The occupational unemployment rate is slightly above the average, while internet vacancies have fallen 16 per cent in the past 12 months. Median weekly earnings are almost one-third higher than the average, although they have increased at a lower rate (10 per cent) than the average (16 per cent) in the past five years. Graduate earnings are higher than average, although this could be attributed to those in this occupation working in Mining. Graduate earnings have remained stable. A very high proportion of graduates work full time. Hours worked increased in the last 12 months. There has been an increase in the use of 457 visas granted for this occupation, peaking at 270 in 2011. What is is not clear from this data, however, is the proportion associated with Manufacturing or, more specifically, food and beverage manufacturing.
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Table 17 Key employment and skill shortage trends: Food workforce Manager and Professional occupations
ANZSCO code
Occupation (four-digit)
Empl
oym
ent
proj
ecte
d to
in
crea
se
Wag
e in
crea
se a
bove
na
tion
alav
erag
e (l
ast
five
year
s)
Incr
ease
in g
radu
ate
earn
ings
abov
e av
erag
e
Prop
orti
on o
f gra
duat
es
wor
king
full
tim
e ab
ove
nati
onal
ave
rage
Incr
ease
in p
ropo
rtio
n of
w
orki
ng h
ours
(p
revi
ous
year
) (%
)
DEE
WR
skill
s sh
orta
ge
457
visa
s gr
ante
d in
201
1(i
ncre
ase
on p
revi
ous
year
)
1213 Livestock Farmers N N N/A Y N N Y
1212 Crop Farmers N N N/A N/A Y N Y
1214Mixed Crop and Livestock Farmers
N Y N/A N/A N N N
1210Farmers and Farm Managers nfd
N/A Y N/A N/A Y N N/A
2341Agricultural and Forestry Scientists
Y N N Y Y N N
2342Chemists, and Food and Wine Scientists
N N N Y Y N Y
2245Land Economists and Valuers
N Y N Y Y N Y
2437 Veterinarians Y Y N Y Y N =
1335 Production Managers Y N N Y Y N Y
Source: AWPA.
Assessment of Technicians and Trade occupationsKey occupations at the Technician and Trade level are assessed below in terms of supply and demand (see Table 16).Veterinary Nurses
There were 11,500 Veterinary Nurses95 in 2011–12, of which 96 per cent were female compared to a national average of 47 per cent. There has been strong employment growth of Veterinary Nurses over 95 These figures are for all veterinary nurses, including those who may not be involved in treating animals for food production.
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the past five years at 43.6 per cent, and growth is projected to continue (by 12.6 per cent over the next five years). Weekly earnings are lower than the average and increased at a lower rate over the past five years. Recent average Veterinarian Nurse graduate earnings are $35,480 per annum which is considerably lower than the national average of $45,120. The proportion of Veterinarian Nurse graduates working full time is only 43.1 per cent, compared to the national average of 65.8 per cent.Food trades
Two food trades have been identified as being key occupations for the industry. These are Bakers and Pastrycooks, and Butchers and Smallgoods Makers. Both are defined as occupations in shortage by DEEWR’s labour market research. It is important to note, though, that Butchers and Smallgoods Makers do not have a significant proportion of their employment in the food industry sectors that this report is concerned with. The majority of employees work at the retail end of the sector. Only 8 per cent of Butchers and Smallgoods Makers are employed within the food processing sector. Both trades have weekly median earnings significantly below the national average, at $777 for Bakers and Pastrycooks and $869 for Butchers and Smallgoods Makers. The recent VET graduate earnings growth is also low, at only 3.2 per cent for Bakers and Pastrycooks and 3.6 per cent for Butchers and Smallgoods Makers. Both occupations are consistently below the national average in most indicators. DEEWR has identified a slight easing of the labour market in 2012 compared with 2011. However, DEEWR states the shortages are likely to persist as the factors that contribute to recruitment and retention difficulties, such as relatively low remuneration, undesirable working hours and difficult conditions, are likely to continue. Both occupations use 457 visas to access workers. Thirty were granted to Butchers and Smallgoods Makers in 2011–12 and 270 to Bakers and Pastrycooks. Employers were able to fill a significantly higher proportion of vacancies for Butchers and Smallgoods Makers in 2012 than in 2011 (65 per cent compared with 38 per cent). This may be due to the increase (of 20 per cent) in relevant apprenticeship and traineeship completions. There were 1.3 suitable applicants per vacancy in 2012 compared to 0.6 in 2011. Projected employment growth for Butchers and Smallgoods Makers is quite high, at 9.9 per cent over the next five years. Bakers and Pastrycooks had around 54 per cent of their vacancies filled within four weeks of advertising. Although on average 10.1 applicants applied for every Baking vacancy, only 1.9 on average were considered suitable by the employers (this is up from 1.3 in 2011). Pastrycooks recorded an average of 2.5 suitable applicants per vacancy.Nurserypersons and Arborists
Nurserypersons and Arborists are essential for the horticulture sector, with skills in cultivating and tending to a wide range of food-producing plants and trees. Nurserypersons have a low median weekly wage at $650. Wages are, however, growing for the industry, rising by 22 per cent over the last five years.DEEWR has identified the occupation of Arborist96 as being in shortage. There has been an easing of the market since 2011, though employers are still facing recruitment difficulties. Forty-three per cent of vacancies surveyed by DEEWR were filled in 2012, although employers only rated less than 1 per cent of applicants as suitable. DEEWR found that employers had a strong preference for employees with qualifications and experience. Employers required suitable applicants to possess a number of tickets and licences including Elevated Work Platform Licence, Chainsaw Licence, First Aid Certificate, White Card, Medium Rigid or Heavy Vehicle Truck Licence and/or a Traffic Management Ticket. Despite the difficulties in hiring qualified employees only ten 457 visas were granted for Nurserypersons in 2011–12.Data from the National Centre for Vocational Education Research (NCVER) indicates the number of apprenticeship and traineeship commencements for Arborists has increased significantly over recent years, rising from 200 in 2007–08 to more than 800 in 2011–12. Completions plateaued in 2011–12 compared with 2010–11, after rising strongly from around 90 in 2007–08 to around 230 in 2010–11. Agricultural Technicians96 Arborists are in shortage at the six-digit ANZSCO level but are classified under Gardeners at the four-digit level.
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Agricultural Technicians perform tests and experiments, and provide technical support to assist Agricultural Scientists in areas such as research, production, servicing and marketing. Employment has fallen in this occupation by 1.1 per cent over the past five years, although this trend is projected to reverse, with employment growth projected at 10.1 per cent over the next five years. The median weekly wage is relatively high at $1,100. This has grown by 29 per cent in the last five years. Recent graduate earnings are also growing at 10.9 per cent. Domestic student completions growth is at 21.4 per cent. There were forty 457 visas granted in 2011–12.Agricultural, Forestry and Horticultural Plant Operators
There were 18,000 Agricultural, Forestry and Horticultural Plant Operators in 2011–12, of which 12,900 were employed by the food and agriculture industry. Employment grew by 10 per cent over the past five years, and growth of 7.7 per cent is expected over the next five years. Agricultural, Forestry and Horticultural Plant Operators have a slightly higher unemployment rate compared to the national average and a more significant decline (of 26.9 per cent) in internet job vacancies over the last 12 months compared to the average of 19.4 per cent. Recent VET graduates earn slightly less ($42,670) than the national average of $45,120, but graduates work significantly longer hours per week at 51 hours compared to the average of 40 hours per week. There were no 457 visas granted in 2011–12 for this occupation.
Table 18 Key employment and skill shortage trends: Food workforce Technician and Trade occupations
ANZSCO code
Occupation (four-digit)
Empl
oym
ent
proj
ecte
d
to in
crea
se
Wag
e in
crea
se a
bove
na
tion
al a
vera
ge
(las
t fiv
e ye
ars)
Incr
ease
in g
radu
ate
earn
ings
abo
ve a
vera
ge
Prop
orti
on o
f gra
duat
es
wor
king
full
tim
e ab
ove
nati
onal
ave
rage
Incr
ease
in p
ropo
rtio
n o
f w
orki
ng h
ours
(p
revi
ous
year
) (%
)
DEE
WR
skill
sho
rtag
e
457
visa
s gr
ante
d in
201
1 (
incr
ease
on
prev
ious
ye
ar)
3613 Veterinary Nurses Y N N N N N Y
3111 Agricultural Technician N Y Y Y Y N Y
7211 Agricultural, Forestry and Horticultural Plant Operators
Y N N N/A Y N N
3624 Nurserypersons Y Y N N/A Y N Y
3611 Animal Attendants and Trainers
Y N N N/A N N Y
3511 Bakers and Pastrycooks Y N N N/A N Y Y
3512 Butchers and Smallgoods Makers
Y N N N/A N Y N
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Source: AWPA.
Assessment of Labourer occupationsThe following provides a brief overview of the most significant Labourer occupations within the food workforce (see also Table 19 and Table 20). Occupations have been selected by looking at ANZSCO four-digit occupations and identifying those where the proportion employed in each sector (Agriculture and Fishing, and Food and Beverage Manufacturing) is greater than 10 per cent.While occupations classified as Labourers within the ANZSCO classification do not require extensive skills or long lead times for training and education, there are still important skills and workforce development issues for many of these occupations which need to be addressed.As mentioned above, the total level of employment for a number of sectors, such as Horticulture, is largely seasonal and dependent on an itinerant and migrant workforce. Bodies such as the NFF and Australian Farm Institute (AFI) suggest these components of the workforce are not adequately captured in official statistics. There are also some aberrations in wages data for some seasonal occupations in terms of relatively high weekly earnings but low annual income levels.
Table 19 Top employing Labourer occupations: Agriculture and Fishing
Source: ABS, Labour force, Australia, custom request; ABS, Employee earnings, benefits and trade union membership, cat. no. 6310.0.
In occupations such as Meatworkers there appears to be a high reliance on 457 visas. In 2011, there were 310 visas granted for the Skilled Meat Workers category, although the peak was in 2008 with 670 visas granted. Recent media reports suggest there will be ongoing demand for Meatworkers as new abattoirs are planned to cater for northern Australia beef cattle processing.97 97 Cranston M and Sprague JA, 2013, ‘AACo blasts 457 fears, FTA lag’, Australian Financial Review, 16–17 March, p. 42.
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Data limitations and implicationsThere is wide recognition from industry of a number of gaps in the existing training and labour market data currently available. The AFI makes a number of claims concerning existing employment data for the agriculture industry98 to argue the following:
• Labour statistics fail to capture seasonality or some overseas workers, or uses categorisations that are of little relevance to industry:– Many subsectors are aggregated into the ANZSIC sectors of other agriculture or agriculture not
elsewhere classified (nec) or not further defined (nfd) and as such provided no meaningful individual industry data. ANZSCO also needs to be expanded to better reflect the specific skill sets required by various industries. As the size of the industries with the NFD classifications have grown, continued omission from or aggregating within classification will inhibit strategic planning and development.
• Statistics concerning participation and training courses relevant to the sector use a number of different categorisation systems:– Undergraduate participation is complicated by the aggregation of agriculture and
environmental sciences into a single statistic.• There is no current and reliable measure of the skills and employment gap in the agricultural
sector.• Identified data gaps include:
– employment tenure type– employee lifecycle or turnover within the sector (general trends in entry and exit from the
sector)– available labour to the sector which is currently underemployed or employed elsewhere in the
economy– current labour demand– skills and qualifications currently required by the sector– current education and training course capacity.
• Statistics about most elements of future labour demand and supply for the agricultural sector are not available and in particular there is a lack of robust data collected on a regular basis so that trends can be determined.
Casual and seasonal employment estimatesA seemingly intractable issue for agriculture industry data is estimating the seasonal and casual workforce accurately. A number of existing data sources provide ballpark estimates for what this might be. For example, the ABS estimates that in the Agriculture, Forestry and Fishing industry there were 55,900 workers without paid leave entitlements (a proxy for casual workers) in November 2012, or 39.3 per cent of the total, which compares to 23 per cent for all industries.99 The ABS publication Australian industry100 estimates there were 510,000 people employed in Agriculture, Forestry and Fishing in June 2011, compared with the estimate of 333,100 from the May 2011 ABS Labour Force Survey (LFS), which suggests that the former collection may be capturing more of the casual/seasonal/contract portion of the industry’s workforce than the LFS.
98 Australian Farm Institute, 2010, ‘Towards a better understanding of current and future human resource needs of Australian agriculture’, Farm Policy Research Institute, June.
99 Australian Bureau of Statistics, 2013, Employee earnings benefits and trade union membership, cat. no. 6310, ABS, Canberra, p. 51. More specifically, the ABS defines employees without paid leave entitlements as employees (excluding Owner Managers of Incorporated Enterprises (OMIEs)) who were not entitled to paid holiday leave and paid sick leave, or did not know whether they were entitled to paid holiday leave or paid sick leave in their main job.
100 Australian Bureau of Statistics, 2012, Australian industry 2011–12, cat no. 8155.0, available at abs.gov.au/ausstats/[email protected]/mf/8155.0.
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The AFI study also argues that seasonal workers are not adequately captured in the ABS Labour Force Survey, which is undertaken on a quarterly basis, the frequency of which does not provide for short-term employment. The AFI estimates an additional 100,000 seasonal workers in unmet labour demand in 2008 for the Horticultural sector and projected an employment range for Horticulture in 2018 around 66,000 to 93,000, while for AWPA’s Future focus scenarios the Horticulture employment range is some 74,000 to 105,000. DEEWR’s projected Horticulture employment subtotal for the 2016–17 projection was around 59,000.101 As noted above, the ABS does not measure wages information in the Agriculture Forestry and Fishing industry for the Wage Price Index due to the high number of seasonal workers in the industry. The ABS requires workers to work for six months or more in order for their wages information to be recorded.
VET enrolment and completion dataAs mentioned above, published VET data does not currently capture information for non-publicly funded training activity, which is estimated to be a large proportion of total training delivery. To address this issue the COAG Standing Council on Tertiary Education, Skills and Employment in November 2012 decided to mandate reporting of all VET activity for all RTOs from 1 January 2014.102 This is a welcome development, but it will take some time for discernible trends to be evident from the data.
Higher education dataProfessor Jim Pratley, Professor of Agriculture at Charles Sturt University, has written extensively on agricultural workforce issues, including agricultural science graduate supply and demand. Professor Pratley is currently undertaking an independent review of agricultural education and training for the New South Wales Government.Pratley estimates that in recent years only around 700 agriculture and related graduates have entered the labour force, while a count of job advertisements between 2007 and 2010 suggests demand for around 4,500 agriculture-related graduates per annum.103 As noted above, however, in the occupational analysis undertaken in DEEWR’s skills shortages research, Agricultural Scientists are not currently listed as in shortage. Pratley attributes this difference to the methodologies used to count job vacancies.104
He also notes that higher education statistics for field of education data are also often highly aggregated in relation to agricultural studies (for example, by including environmental science).
Farm business and workforce demographic data issuesThe AFI has highlighted a problem with the definition of a farm business in Australian agricultural statistics.105 Farm businesses have been included in the ABARES broadacre survey where they have an estimated value of agricultural output (EVAO) above a specific threshold. Between 1987–88 and 1991–92 the survey included establishments with an EVAO of $20,000 or more. Between 1991–92 and 2003–04 the survey included establishments with an EVAO of $22,500 or more. Since 2004–05 ABARES farm surveys included establishments classified as having an EVAO of $40,000 or more. This means that many of the ‘farms’ included in the analysis are not commercial farms, but lifestyle farms. To give some indication:
101 Horticulture employment is counted here by grouping the Nursery and Floriculture Production, Mushroom and Vegetable Growing, and Fruit and Tree Nut Growing subdivisions.
102 Communiqué for the COAG Standing Council on Tertiary Education, Skills and Employment (SCOTESE) Meeting, 7 June 2013.103 Pratley J, 2012, Professional agriculture: A case of supply and demand, Australian Farm Institute, Sydney, p. 7.104 Pratley also examines industry demand for agriculture graduates, based on job advertisements that appeared in both state,
rural and metropolitan newspapers and the internet over a four-year period from 2007 to 2010, with a 20 per cent adjustment for double counting between the two media. This amounted to around 4,000 jobs per quarter, around 2,000 of which were for non-management positions. Of the remainder, around 1,600 advertised positions per quarter were for agribusiness jobs, which translates to 70 per cent requiring graduate qualifications, resulting in demand for 4,500 graduates per annum.
105 Australian Farm Institute, 2012, Rookie errors on the road to an agricultural boom, farminstitute.org.au/newsletter/2012/November_2012/November_crossingthedivide.html, accessed 28 August 2013.
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• approximately 30 per cent of the farm businesses included in the survey have an EVAO of less than $100,000
• they account for only approximately 5 per cent of total agricultural output • they obtain more than 90 per cent of their net income from off-farm wages.
These farms are managed at the weekend and owned for lifestyle reasons and are located in the hinterlands of many Australian capital and regional cities. A comparison of 2002–03 and 2010–11 ABS data106 shows the number of farms marginally increasing to 135,000 and the average size of farms decreasing slightly to 3,020 hectares. There has also been an increase in the number of very small farms (under 50 hectares), where this increased from 20 per cent of total farms to 35 per cent between 2002–03 and 2010–11. This change was mostly driven by an approximate doubling of the number of businesses under 50 hectares in beef cattle farming.
ANZSCO classifications reviewAlong with the AFI and AgriFood Skills Australia, the NFF107 has made repeated representations to government over a number of years on the inadequacy of the current ANZSCO occupational and skill level classifications for the agriculture workforce. Ball and Cody, 2013, argue that current ANZSCO classifications impact on the ability of the agriculture sector to access training and migrant labour initiatives.108 The NFF sees a number of differences in ANZSCO definitions to current practice, such as definitions used in the Pastoral Award, and for a number of occupations that have their skill levels classified too low to enable employers access to the 457 visa scheme. For example, they believe Farm Overseer and Agriculture Technician skill levels are classified too low. Other occupations, such as the various Farmer classifications, they believe are classified too high. A number of occupations have also experienced skills deepening and broadening which has led to new technician and trade level roles. Along with this has been the development of a technical class of workers with some management responsibility, including risk and lean management. Stakeholders also state concerns with the ability for the system to adapt in the future and capture new occupations emerging through technological advances.The NFF notes the 2012 Senate Inquiry into Food Processing recommended a review of ANZSCO classifications. The NFF also notes the SkillsDMC’s review of occupations in the civil construction industry sector as a useful model for the ANZSCO review.109 This work should provide a mechanism to establish a sound evidence base that identifies the specific changes required to either existing occupation descriptions and their skill levels, identifies new occupations and their skills levels, and estimates the scale of these occupations from which to establish their statistical significance and ability to be captured through ABS survey instruments, such as the Labour Force Survey. This work should then feed into the next major review of ANZSCO scheduled to begin following the 2016 census and release of the next full edition of ANZSCO in 2021.110 Given this timeframe, the ABS should work with industry to identify any significant changes from the existing ANZSCO classifications and assess what impact they may have on training and migrations programs which rely on ANZSCO as a proxy for decision making. Mechanisms to address these impacts should then be developed if warranted.
ABS and ABARES data collection responsibilityThe AFI has undertaken a comparison of the agricultural statistical systems and makes a number of recommendations, including that responsibility for agricultural data collection be transferred from the 106 Australian Bureau of Statistics, 2013, Agricultural commodities, Australia, 2011–12, cat. no. 7121.0, ABS, Canberra.107 See Australian Farm Institute, 2010, ‘Towards a better understanding of current and future human resource needs of
Australian Agriculture’, Farm Policy Research Institute, June 2010, p. xii; AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 38; and National Farmers’ Federation, Canberra, NEST recommendations submission to AWPA as part of the Food and Beverage study.
108 Ball R and Cody M, 2013, Skills supply and the ANZSCO codes: Urgent concerns and implications for AgriFood industry sustainability, Primary Industries Skills Council, Port Adelaide.
109 See SkillsDMC, 2010, Civil construction occupation review report, March 2010, available at skillsdmc.com.au/skillsdmc_reports/civil_construction_ANZSCO_report.
110 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 38.
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ABS to ABARES as a delegated authority, while there is also a need for better integration of statistical systems, and costs and resources clearly identified.111 Whatever the merits of these suggestions, both the ABS and ABARES are critical players to any future resolution of the above data issues.AWPA believes a coordinating body should work with the ABS and ABARES to remedy the data limitations identified in this study.
Implications for skills and workforce development
Factors impacting on demand for skills and labourThe agrifood industry is midway through widespread structural adjustment. Factors are acting simultaneously, in ways that further impact on each other.112 Numbers of Australian farmers have fallen by 32 per cent in the last 15 years as landholders consolidate, and corporatisation and the use of contract labour become more widespread. Food and beverage manufacturers have responded to pressures (including the strong Australian dollar, a highly concentrated retail market and volatile commodity prices) by rationalising supply and focusing on productivity gains to cut costs and improve profitability. Supply rationalisation has occurred through a combination of mergers between industry players, site consolidation and, for some product categories, offshoring of manufacturing production to lower cost countries.113
The effect of changing environmental conditions, uncertainty in access to water and the introduction of new technologies is also being felt. In addition, a number of government policies and strategies, such as the Murray–Darling Basin Plan and newly proclaimed Marine Protected Areas are placing new requirements on producers.These changes, combined with demographic shifts (particularly the ageing of the agricultural workforce), all have implications for the future size and skill profile of the food and beverage workforce. For some sectors this will mean higher skill requirements, while for others new technologies are deskilling traditional job roles. As the food and beverage industry continues to restructure, some sectors will see employment growth, while others will see declines.‘Weak businesses continue to be culled; strong ones continue to innovate and seek efficiencies from every component of a shortening supply chain.’114 The skills profile an industry requires will vary as extrinsic and intrinsic factors alter the work environment. This section explores the potential effect on the food industry of the following factors:
• opportunities arising from the Asian century• consolidation and increased corporatisation of farms• rationalisation of Australian food processors• environmental change• increasing consumer awareness and changing tastes• impact of new technologies on skills and productivity• government policies.
Opportunities arising from the Asian centuryAustralia operates in a global economy and, as such, the decisions, fortunes and misfortunes of other countries and regions impact on our economy. Currently we are seeing the transformation of the Asian 111 Paulos J, 2013, ‘Is counting farmers harder than counting sheep: A comparison of the agricultural statistical systems of
Australia, the United States and France’, Australian Farm Institute, Occasional Paper, March 2013, pp. viii–ix.112 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 10.113 Australian Food and Grocery Council and A.T. Kearney Australia, 2011, 2020: Industry at a crossroads, Australian Food and
Grocery Council, p. 9.114 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. IV.
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region into an economic powerhouse with an expanding middle class. The rise of the middle class in Asia in particular brings with it potential opportunities for Australian food exports, including the export of knowledge and expertise. To thrive in the Asian century Australia must have the capacity to seize economic opportunities and manage strategic challenges that arise. Trade markets in Asia vary, however, there is a potential for increased demand for value-added food products. The food commodities projected to be most sought after in Asia by 2050 are beef, wheat, dairy products, sheep meat and sugar.115 These predictions are based on the process of diet transformation currently underway in Asia. Studies have found that the main determinant of the changes in the demand for food is income growth, which leads to major shifts in demand across different types of food to a more varied diet.116 The demand for processed foods has also been shown to increase as wages increase; people are more willing to pay for convenience which frees up their time for income-earning activities.117 ABARES is working on an assessment of trends in global food demand, seeking to identify opportunities for Australian producers in expanding Asian markets over the medium to long term. This research will be presented in a series of reports entitled What Asia wants: better understanding future Asian food demand. This analysis needs to consider how future demand compares with the current profile of exports, to identify the gap that needs to be bridged by Australian food producers and processors. Realising these longer term opportunities will require greater investment by the food and beverage industry to boost output, adapt to regulatory change and build capacity to ensure that Australian exporters have the skills, knowledge and capabilities to meet this demand. The challenge for this industry is to increase and potentially modify production to meet new demands, while also retaining the existing industry base.118 A different range of skills will be required to capitalise on the rise of the Asian century. These capabilities include adaptability, flexibility, resilience, creative and design thinking, and the confidence and readiness to interact with and operate in Asia. Further Asia-relevant capabilities include cultural and representational skills to make informed decisions in an increasingly complex environment.119 In the food and beverage industry, capabilities required to build a successful business include stronger entrepreneurial, management and technical skills to connect to global food industry value chains. This includes ‘supply chain management skills, including consistency of supply and the tailoring of products and services to specific market needs’.120 A developed understanding of work practices and cultures in countries will also assist in building relationships essential for exporting goods. Business will need to develop skills to understand the diversity of preferences, cultures and circumstances that can affect how products are produced, presented and transported for different Asian markets.121 Such skill requirements are reinforced in other publications such as the AgriFood Skills Australia 2013 Environmental Scan, which suggests that undergraduate programs and short courses should be developed that combine business management, agrifood skills and entrepreneurship and cultural competences required for the Asian market.
115 Linehan V, Thorpe S, Andrews N and Beaini F, 2012, Food demand to 2050: opportunities for Australian agriculture ABARES, Outlook conference paper no. 12.4, Canberra, March, 2012.
116 Pingali P, 2006, ‘Westernization of Asian diets and the transformation of food systems: Implications for research and policy’, Food Policy, Vol. 32, pp. 281–298.
117 Regmi, A and Dyck J, 2001, ‘Effects of urbanisation on global food demand’ in Regmi A (ed.), Changing structures of global food consumption and trade, ERS WRS 01-1, Economic Research Service, United States Department of Agriculture, cited in Pingali P, 2006, ‘Westernization of Asian diets and the transformation of food systems: Implications for research and policy’, Food Policy, Vol. 32, pp. 281–298.
118 Australian Government, 2012, Australia in the Asian century: White paper, DPMC, Canberra, p. 215.119 Australian Government, 2012, Australia in the Asian century: White paper, DPMC, Canberra, p. 163.120 Australian Government, 2012, Australia in the Asian century, White Paper, DPMC, Canberra, p. 216.121 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 9.
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Consolidation and increased corporatisation of farmsStructural shifts in farming have intensified the trend away from family-owned farms towards increased consolidation, corporatisation and use of farm employees and contractors. Impacts from the trend in the consolidation of farms are potentially positive for employees’ opportunities in training. Larger companies generally have a better human resources focus, with a greater emphasis on, and capacity to deliver, training and development. Furthermore, corporatisation and aggregation of businesses bring efficiencies, increased professionalism and career pathways which may mitigate the fragmentation of traditional work organisation in other areas.122
Increased corporatisation has led to a change in business models for farms. Farmers are increasingly avoiding investment in heavy and labour-intensive operations, becoming managers of a complex environment of contractors and service providers.123 Such business models have in turn created a new market for small business consultants, paraprofessionals and specialist contractors. This new field needs to be navigated carefully, with new skills required in managing contractors and identifying quality paraprofessionals. With the rapid expansion in these new services, a level of assurance on the quality and qualifications of those performing the services is important. The decline in publicly funded extension services can mean that farmers are less knowledgeable about new developments and techniques and therefore are more reliant on the quality of the information or service provided by consultants.
Rationalisation of Australian food processorsWithin the food processing sector, plant closures, downsizing and offshoring are creating a need to retrain and reskill displaced workers. Over the last three years Rosella, Windsor Farms, SPC, McCain and Golden Circle have all closed some or all of their Australian food processing operations. Simplot is currently assessing the continued viability of their Devonport, Tasmania, and Bathurst, New South Wales, plants.124 Changes in corporate strategy, acquisitions, ownership structures and supply chains are having a significant impact on the food manufacturing workforce. As many larger food processing companies are multinationals they have an ability to compete in regional markets. For example, Australia’s comparatively high wages and energy costs have been cited as factors behind companies relocating to countries such as New Zealand.125 Retail company strategies, such as those seeking to improve margins through the increased use of private-label brands or increased fresh food as opposed to canned or frozen foods, are also impacting on a number of established food processing firms and their suppliers.126
Plant closures affect the existing and future capacity of the food processing sector. These closures have a direct impact through immediate job losses in food processing operations, and also on the wider food supply chain such as other ancillary and support service providers and on the viability of primary producers of horticulture (fruit and vegetables) who previously supplied processors. Also, as many processing sites are located in regional areas adjacent to primary producers, they impact on wider regional economic activity and communities. Jobs losses also often require workers to reskill and or relocate to find alternative employment. In the remaining operations, growth opportunities do exist, especially when new investments in processes and technologies are adopted. Given the above considerations, stakeholders have highlighted the importance of developing bottom-up regional food plans to address local concerns and priorities, through regionally based ‘skills eco-systems’.127 This recognises the interdependence of co-located industries and the need to develop sustainable skilled labour pools to withstand seasonality and varying business cycles. The AgriFood 122 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 22.123 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. iv.
124 Mulcahy R, 2013, ‘We must act now’, Weekly Times, Melbourne, 12 June 2013. 125 Mitchell S and Stewart C, 2013, ‘Simplot feels the squeeze from high labour costs’, Australian Financial Review, 7 June 2013.126 Black A, 2013, ‘Booze, broccoli and more price cuts: Ian McLeod’s new shopping list for Coles’, Business Review Weekly, 13
June.
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National Regional Initiatives is expanding this concept to four regions, as discussed above.
Environmental changeAgricultural production requires resources such as land, labour, capital equipment, water and other inputs including energy, fertilisers and pesticides. Agriculture competes with other sectors of the economy for some of these resources; for others, competition exists primarily among agricultural products. Also, environmental considerations are likely to constrain the use of additional resources such as unused land or water. Areas managed for conservation have been increasing in recent years. Approximately 7 per cent of Australia’s land is set aside for nature conservation.128
The limited availability of more land could constrain growth in agricultural production. There may be some scope for additional land to be brought into agricultural production in northern Australia, but development is likely to be limited without the stimulus of higher prices and significant investment in infrastructure. At the same time, some land is being lost to urban development, mining and industrial uses, and there is a risk of further salinity, acidity and encroachment of pests and weeds.129
Limited availability of water could impose more severe constraints on food production than land limitations. A significant expansion of irrigated land is unlikely and future gains are likely to come from improved performance of existing irrigation. Agriculture is the largest consumer of water in Australia, accounting for 54 per cent of total consumption in 2010–11. In 2010–11, Australia’s total agricultural water use was 7,551 gigalitres, of which around 90 per cent was used for irrigating crops and pastures.130 Almost two-thirds of total agricultural water consumption occurred in the Murray–Darling Basin. Less than 1 per cent of agricultural land in Australia was irrigated in 2009–10. Agricultural water use has decreased dramatically over the last decade, from 16,660 gigalitres, or 67 per cent of total Australian water usage in 2000–01, to 7,175 gigalitres, representing 54 per cent of Australia’s water consumption in 2010–11.131 This decline is due, in part, to widespread drought conditions during the decade.132 At the same time, a range of policy and program initiatives have been introduced to improve the efficiency of water use. The initiatives included better developed markets, changes to pricing for water storage and delivery, funding for more efficient irrigation infrastructure, government purchases of permanent water entitlements and commitment to a plan to better manage water in the Murray–Darling Basin.133
Potential exists for developing irrigation agriculture in northern Australia.134 Although northern Australia receives a large share of Australia’s rainfall, it is concentrated in a few months of the year and occurs predominantly near the coast, where there are few opportunities for water storage. The Northern Australia Land and Water Taskforce, 2009, concludes that the development of groundwater resources provides the best prospects. It has been estimated that between 20,000 and 40,000 hectares of land could potentially be irrigated by groundwater in northern Australia. Small-scale, widely distributed agriculture (‘mosaic’ agriculture) is a form of agricultural enterprise that could be particularly
127 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 36.128 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Prospects for agriculture and its workforce:
ABARES’s contribution to the AWPA food workforce study, unpublished.129 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Prospects for agriculture and its workforce:
ABARES’s contribution to the AWPA food workforce study, unpublished.
130 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Prospects for agriculture and its workforce: ABARES’s contribution to the AWPA food workforce study, unpublished.
131 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Prospects for agriculture and its workforce: ABARES’s contribution to the AWPA food workforce study, unpublished.
132 Australian Bureau of Statistics, 2012, Water use on Australian farms, 2011–12, cat. no. 4618.0, ABS, Canberra; Australian Bureau of Statistics, 2004, Water account, Australia, 2000–01, cat. no. 4610.0, ABS, Canberra.
133 Ashton, D and Oliver, M, 2012, ‘Responding to change: Irrigation in the Murray–Darling Basin 2006–07 to 2010–11’, ABARES Research Report 12.6, Canberra, p. 1.
134 Northern Australia Land and Water Taskforce, 2009, Sustainable development of northern Australia: A report to government from the Northern Australia Land and Water Taskforce, pp. 2–3.
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appropriate in northern Australia, given that sites where available water resources and suitable agricultural soils coincide are likely to be comparatively small and distributed widely.135
An additional challenge to expanding agriculture in Australia is the potential effects of climate change. The effects of climate change and variations in access to water are increasing the variability that producers must manage. Producers manage year-to-year variability and have adapted to their local climate by establishing infrastructure and developing local farming practices. Climate and weather variability affect almost every aspect of agrifood production, from plants and animals to preferred soil types, management systems and technologies.136 Many industry participants are already experienced in dealing with environmental variability and are well placed to manage the risks posed with the development of adaption skills and disaster planning.137 However, large and consistent changes in the climate may require adjustments to current practices and chosen commodities in order to maintain productivity.138 Therefore, it is important to identify the adaptive capacity of local farmers, communities and industry groups by region, to improve capability in this area.139 Stakeholders have also emphasised the increased role of risk management and contingency planning in this environment and a need to improve skills in this area.Climate change may have positive effects for Australian agriculture. Unlike most other sectors, where there are few positive impacts of climate change, agriculture and forestry is different because plants can respond positively to higher concentrations of CO2 in the atmosphere.140 Moderate warming without rainfall declines can also be beneficial to some agricultural crops. However, these positive effects can be offset by other changes in temperature, precipitation, pests and the availability of nutrients. Rainfall levels in northern areas may change little, but Australia’s major cropping and livestock production areas in the south-west could be as much as 40 per cent drier by 2070 than in 1990.141 For northern Australia, changes in climate could see the expansion of viable agricultural zones, although further research and commercial-scale demonstration is required and a number of significant challenges need to be overcome.142 Work is already underway in some areas; for example, in Western Australia the state government is expanding irrigation in the Carnarvon area by up to 600 hectares.143 Any expansion into new geographical areas requires the development of skills and knowledge for efficient production in that new climate. Sustainable environmental practices are receiving more attention from both consumers and government. Emerging skills required to improve sustainability relate to: development of alternative energy sources (for example, biofuel); systems biology and adaptation to changes in climate, increased atmospheric CO2 and climate extremes; sustainability of production and environmental resilience; sustainable management of natural resources (for example, water, soil, biodiversity); efficient nutrient management; technology development in carbon capture and storage; and reducing greenhouse gas emissions.144
135 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Prospects for agriculture and its workforce: ABARES’s contribution to the AWPA food workforce study, unpublished.
136 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 5.137 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 5.138 Gornall J, Betts R, Burke E, Clark R, Camp J, Willett K and Wiltshire A, 2010, ‘Implications of climate change for agricultural
productivity in the early twenty-first century’, in Philosophical Transactions of the Royal Society B: Biological Sciences, Vol. 365: pp. 2973–2989.
139 Cleugh H, Stafford Smith M, Battaglia M, and Graham P, 2011, Climate change: Science and solutions for Australia, CSIRO Publishing, Victoria, p. 94.
140 Cleugh H, Stafford Smith M, Battaglia M, and Graham P, 2011, Climate change: Science and solutions for Australia, CSIRO Publishing, Victoria, p. 54.
141 Gunasekera D, Kim Y, Tulloh C and Ford M, 2007, ‘Climate change: Impacts on Australian agriculture’, Australian Commodities: December quarter 2007, Australian Bureau of Agricultural and Resource Economics, Canberra, p. 660.
142 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 17.143 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 17.144 Faculty of Agriculture and Environment, University of Sydney, submission to AWPA food and beverage study.
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Increasing consumer awareness and changing tastesAustralians are now more conscious about the quality of their food and the methods used to produce it, and are becoming more aware of production methods—in particular, animal welfare and environmental sustainability. Consumers are willing to pay more for eggs from free-range chickens, pork that has not been farmed intensively and seafood from sustainable fisheries. This has led to a change in the minimum standards for how food is produced, causing some farmers and processors to re-examine the way they operate, which is requiring the development of new skills in areas such as production line mechanics and different farming techniques.
Prawn fishers take up environmental qualificationsCommercial fishers from the Northern Prawn Fishery have undertaken new TAFE-recognised training on best-practice fishing as part of a collaborative program between the Australian Fisheries Management Authority and the Northern Prawn Fishery Industry Pty Ltd as part of the Australian Government’s Caring for our Country program.Over 60 fishers have improved their understanding of turtle excluder devices and bycatch reduction devices at workshops run in Cairns, Darwin and Karumba in March 2013.The workshops examined issues facing the fishery industry and worked on developing strategies and actions that fishers can adopt to further improve sustainability.The qualification—Implementation and monitoring of environmentally sustainable work practices—covers a wide range of topics, including how to avoid bycatch, regulatory reporting requirements and fish stock assessments.
In addition there has been a growing demand for higher quality food, including for products such as infant milk powder formulas and fresh food, with advanced skills in food safety and quality assurance required to meet this demand. This increased consumer scrutiny has led to emerging skill requirements in improved raw food material storage and handling methods, including related experimentation, the investigation of nutritional characteristics of products before, during and after processing, whole-of-chain consistent practices in animal welfare and low-stress animal handling, increased microbiological sampling and testing, along with skills in food safety response.145 Businesses will also need the skills and knowledge to address any negative community concerns and appropriate media communication skills to manage these issues as they arise. Productivity gains in food processing will also be achieved by adopting technologies that reduce waste and add value (for example, novel storage and packaging technologies), and through innovative process management incorporating food safety.146 Programs such as Technology and Knowledge Connect and Researchers in Business (which come under the Enterprise Connect banner) can assist businesses with these challenges.
Impact of new technologies on skills and productivityTechnology plays an important role in increasing productivity within the industry—across all parts of the supply chain. Advances in areas such as techniques, tools, machines, remote farming, genetics, information technology applications, advanced manufacturing processes, irrigation and breeding have already helped to increase Australia’s productivity and competitiveness.
145 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 41.146 Faculty of Agriculture and Environment, University of Sydney, submission to AWPA food and beverage study.
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Examples of recent and emerging advances within the agricultural production sector include low-cost soil moisture probes scattered throughout paddocks, advanced 3D imagery to measure crops and livestock tracking with position tags. Additionally, the NFF has identified technology developments such as robotic technology, human genomics and laboratory production of meat as developing issues that could have major impacts on Australian agriculture in the future.147 Equally important are the technological advancements being made within the food processing sector. Technologies currently in development in this area include: high pressure processing (HPP), ultrasonics, pulsed electric fields and cool plasma.148 While some technologies are not yet in commercial use, both HPP and ultrasonics are already being used in Australia to produce a variety of goods, including fruit juice and dairy products. Historically, Australia has had a high level of productivity within its agriculture industry compared to many other countries, making further large improvements more difficult without a concentrated effort on long-term ground-breaking research. Ongoing investment in R&D is likely to be necessary to maintain and improve productivity under changing climate and resource constraints.149
Due to greater accessibility and faster knowledge transfer available through the internet, new technology is being invented at a faster rate, increasingly by employees on the ground. New techniques, products or devices can be developed on individual farms and factories and more easily communicated to others. Stakeholders indicate that there is a level of frustration with the generally slow uptake of new technologies. The range of factors identified includes perception of relevance, attitudes towards risk, likelihood of return on investment, observable outcomes, and complexity and integration into existing systems.150
The potential benefits may be lost if the new technology is not adopted when it becomes available. In some cases, the products will be highly sophisticated with the technologies built in to user-friendly interfaces, making them intuitive to use. In other cases, they will require considerable upskilling of workers and changes to training products. There are a number of factors that could potentially contribute to a greater rate of adoption of new technology. One critical factor relates to the skill level of the adoptee. If a business does not understand or have the required skill to use the new technology, it may not risk adopting it. Or if it does adopt, it may not gain the full benefit of its application. Therefore, it is important to ascertain not only what skills people need to invent new technologies, but also whether they have the skills to capitalise on new technology. There are a number of consultative and collaborative opportunities to support technology adoption and innovation. Often the lead time from technological development/process innovation to training outcomes is so protracted that interim skilling solutions are provided rather than formal VET or tertiary education pathways.151 Among the extension strategies to improve adoption are short courses, workshops and participatory research. Stakeholders cite concerns, though, of the perceived credibility of advice with the increasing shift towards the private sector delivering these services. Another common pathway of technology transfer in food production is through ‘early adopters’ providing a commercial pilot from which the technology filters out to the rest of the market. For new technology to be efficiently used, its application needs to be understood by business decision makers. Extension plays a vital role in delivering this applied understanding.The AgriFood Skills Australia 2013 environmental scan also acknowledges the importance of technology. It includes the ‘diffusion of new research findings, innovative practice and technologies’ as
147 National Farmers’ Federation, 2013, Blueprint for Australian agriculture 2013–20, NFF, Canberra, p. 7.148 CSIRO, Food Manufacturing Pilot Plant, available at csiro.au/Organisation-Structure/Divisions/Animal-Food-and-Health-
Sciences/Food-Pilot-Plant.aspx, accessed 28 August 2013. 149 Sheng Y, Mullen J and Zhao S, 2011, ‘A turning point in agricultural productivity: Consideration of the causes’, ABARES
Research Report 11.4, p. iii.150 Faculty of Agriculture and Environment, University of Sydney, submission to AWPA food and beverage study.151 Chamber of Commerce and Industry of Western Australia, submission to AWPA food and beverage study.
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one of its five priorities for the industry.Views raised in some submissions suggest that emerging technologies are impacting on skills, most notably by reducing the number of lower skilled jobs and increasing the need for higher level technical skills among remaining workers. This in turn requires workers to have higher language, literacy and numeracy levels to operate effectively in these new work environments. Overall, integrating foundation skills with vocational skills and knowledge would lead to improved capability of the workforce and the industry.152
Government policiesState, territory and Australian Government policies across a range of portfolio areas also affect the agrifood industry’s operating environment. An example is the Murray–Darling Basin Plan, which will directly affect the operating climate for those within the basin, including the water market. The long drought experienced by Australia has already seen the reduction of water usage on farms. Environmental management will increasingly become a focus as will skills in water harvesting. In general, upskilling the workforce will assist in mitigating the potential negative effects on the industry as productivity improvements may offset the lower levels of production caused by decreased water availability. Other government policies such as the Australian Government’s Animal Welfare Strategy can affect technical skill requirements. With the revision of such policies there may be a need to upgrade skills, such as animal handling, to maintain compliance with the strategy. Such policies can also affect the business management skills requirements, by increasing the regulatory requirements involved in the industry. An example is the new Exporter Supply Chain Assurance System, which now requires an exporter to demonstrate that livestock will be treated at or better than internationally recognised welfare standards. The introduction of new policies can also generate a need to upskill in a knowledge-based field. To understand and implement new policies, an employer may need to invest in training to learn about a new field. The relevant level of investment will depend on how applied the knowledge will need to be. For example, the introduction of carbon policies and related initiatives stimulated a need for business to have a more comprehensive understanding of carbon generation and its impact. Government policies can also generate opportunities for the industry to expand. With expansion comes the need to upskill, depending on the opportunity. One such example is the North Queensland Irrigated Agriculture Strategy. Researchers are examining whether mosaic irrigation—incorporating small, dispersed areas of irrigated land into existing cattle farms—can be effective in lifting cattle numbers and whether, as an area, it will enable diversification into other cropping activities such as grain, horticulture and other high-value crops.153
Emerging skills needsAll of the factors discussed above will impact on the number of workers needed and the skills required in the future. Many of the skills identified above are generic skills, such as leadership and management, record keeping, risk management and people management. Skills in process redesign and control to help reduce increased input (for example, energy) costs and market/product research and evaluation skills will also be needed.154 Organisational efficiency, improved decision making, and effective resource allocation are key functions of a healthy and successful business. Developing the skills of management to achieve organisational goals and objectives is a major training need that has been identified throughout the small to medium-size business sector. For most sectors, training in language, literacy and numeracy remains vital at lower skill levels, but it remains important at higher skill levels.
152 TAFE NSW, submission to AWPA food and beverage study.
153 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 17.154 Food, Fibre and Timber Industries Training Council, submission to AWPA food and beverage study.
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AgriFood Skills Australia, as the Industry Skills Council for agrifood, conducts an environmental scan each year to determine the current and emerging skills in demand. A wide range of industry and regional representatives have input into this process. The ISC’s environmental scan is a rich source of information on emerging skills needs and trends over time.155
155 The latest environmental scan (2013) is available at agrifoodskills.net.au/?page=2013Scan, accessed 28 August 2013.
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The dairy industry takes a fresh approach to peopleThe dairy industry is leading the way in its coordinated and comprehensive approach to workforce development, with peak industry association Dairy Australia at the helm. Dairy Australia places skills and capability as one of its three key strategic priority areas, and invests its government and industry levy funding accordingly, with The People in Dairy program as a central initiative. The program assists farm managers to attract, retain, manage and develop the people they need to achieve the strategic visions of their businesses. It builds the whole sector’s ability to attract and retain people, helps advisers increase their capacity to support farmers on people issues, and develops industry leadership for the future.Dairy Australia took a careful approach and based the program on research conducted by the University of Melbourne. The university’s Associate Professor Ruth Nettle said that bringing data together from different sources was a difficult task, but that the outcomes had been extremely valuable for the industry.Dairy Australia’s program is unique in its extensive and comprehensive suite of workforce planning and development programs, including:
• Dairy Industry People Development Council—to lead and inform an industry workforce development framework to address the needs of individuals and organisations regionally and nationally
• Regional Development Programs—operating in each dairy region to support Regional Education and Extension Committees, which establish regional plans of action for workforce development
• People Factfinder—a database providing information about demographics, roles, conditions and attitudes of people in the dairy industry
• Valuing People Project—research that aims to measure the effect of good people management on farm business success
• Retention of Staff—a research project to discover what makes employees stay in a job
• People GPS—a four-day course for dairy farmers to improve their people management
• DairySage Mentoring—which assists dairy farmers to form mentoring relationships
• Cows Create Careers—a secondary school program linking schools to their local dairy industry through curriculum-based learning about dairying, dairy manufacturing and related careers
• In2Dairy—an industry traineeship program which includes active support for employers and trainees by Dairy Australia
• Diploma of HRM (Dairy)—a specifically tailored people management qualification for advisers who service the dairy industry and provide advice on human resources and workforce planning
• Workforce Planning and Action—a research project looking at human resource management practices and turnover in the dairy industry and developing workforce planning models for the farm
• The National Centre for Dairy Education Australia—through agreements between Dairy Australia and RTOs the centre has an ability to generate
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significant scale in education and training provision, allowing it to attract high-calibre trainers, invest in capital equipment, and offer specialised training that meets the needs of industry
• leadership development programs—programs that align to and support a three-tier leadership strategy.
Key to The People in Dairy’s success is Dairy Australia’s support for workforce development and its willingness to take the lead and invest in this area. The organisation recognises workforce development as an integral part of industry innovation and the program is the result of a very conscious decision by the Dairy Australia Board to pursue this as an area of importance.Dairy Australia’s long-term view has also been essential to success—the program has been running for nearly 10 years. Aside from the obvious need to have sustained people development, the program has benefited from ongoing attention to monitor programs and keep abreast of supplementary funding opportunities such as government grants.While this program has been a positive step forward for the industry, the challenge now is to properly measure and articulate the program’s outcomes and benefits.The industry is looking at whether similar programs could be successfully applied to other agrifood sectors. Given the workplace issues in most agrifood sectors—poor attraction and retention, not enough skills in business and people management, lacking awareness of the value of training, graduates not work-ready—a targeted, grass-roots program such as The People in Dairy could be beneficial in other sectors. The dairy industry is characterised by a large number of small businesses, often in regional clusters, with very labour-intensive operations. This creates an ideal situation for collective action, which may not be present in other sectors. Work is underway to test whether the program can be applied on a regional, rather than farm, basis.
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Part Two
Attraction, retention, development and use of skilled workers
IntroductionA number of useful reports on the future of Australia’s food industry have been published in recent years. In Part Two, this study brings together material from those reports relating to workforce development, adds new work on the likely evolution of workforce requirements over both the short and medium term (including replacement requirements), and places the material in a context of policy recommendations to meet the workforce challenges posed by the expected development of the industry. As outlined in Part One, the farm sector has enjoyed a reasonably prosperous decade and continues on average to see good returns. The food processing sector has been expanding at a slower pace, but continues to have the largest workforce of manufacturing sectors and continues to rival metals and machinery and equipment production as the largest contributor to manufacturing output. Both sectors are in the midst of a number of changes that have implications for the current and future workforce. Agriculture remains one of Australia’s most productive industries because of both the increase in farm output and the contraction of the workforce. Farms are being consolidated, often under corporate rather than family ownership, increasing the opportunities for mechanisation to replace labour but also increasing the need for professional farm management, for skilled plant operators and for scientifically trained professionals such as agronomists and veterinarians. The existing farm workforce, including farm owners and managers, is older than the average for the workforce as a whole, so replacement of the existing workforce will be demanding, even though the farm workforce will continue to contract. A persistent problem in the farm sector is a lack of interest in career development (evidenced by low levels of post-school qualifications among the workforce), though this is not true of all farm industries. And while younger farmers are often early adopters of new technologies, they are currently in a minority in farm management.The food processing workforce is relatively young compared to the workforce as a whole. While some sectors experience a high turnover of workers, in others stagnation appears to be a problem. In the longer term, if the industry is to take full advantage of the opportunities presented by rising incomes in Asia it will need to innovate continuously to meet global competition and changing tastes. In this respect the increasing role of foreign investment may be helpful in infusing global marketing and production techniques. But there is likely to be an increasing requirement for technical and scientific qualifications to support new product development and marketing. A problem common to both sectors is a widespread but incorrect perception among school leavers and to some extent among careers advisers that there are only very limited opportunities for the rewarding exercise of scientific and technical skills in agriculture and food processing. Another problem common to both is the lack of clearly defined career pathways, particularly between sectors of the supply chain.These structural factors, combined with the demographics of the workforce (particularly the ageing of the agricultural workforce), all have implications for future skills and labour demand. These are discussed in Part One. A new approach to skills and workforce development is required, one that focuses on pathways across the supply chain. Also clear is the need for increased involvement of industry in education and training provision, including through a greater focus on work-integrated learning.Publicly funded commencements in food industry vocational training have not kept pace with the general growth in VET commencements in recent years, and completion rates remain low. For food and beverage industry-related higher education courses, enrolments show a gradual decline, although this
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masks trends across different qualifications and across different institutions which are hard to decipher. In part, these supply trends can be attributed to funding models and complex institutional arrangements across jurisdictions. It is also clear, however, that the industry suffers from an image problem among school students and young people in general, which needs to be addressed as part of a coordinated, multi-faceted approach to ensuring an adequate supply of skilled workers into the future.Industry stakeholders have told us that potential entrants are often unaware of career opportunities in the industry or have poor perceptions of the working conditions. Many have not had sufficient exposure to the required maths and science skills or agriculture-related studies while at school. It is also acknowledged that the industry cannot always compete successfully with other sectors for labour. Having said that, AWPA has heard anecdotally that some of the workers who left the industry for jobs in the mining sector are starting to return to the regions, providing an opportunity to attract them back into jobs in agriculture and food processing.The food and beverage workforce has a relatively low skills profile, with just under 40 per cent of agriculture and fishing workers and 45 per cent of food processing workers having a post-school qualification. While these proportions are increasing, both remain significantly lower than the all-industries average of 62 per cent. Among employers, there is a perceived reluctance in a number of sectors to view training as a worthwhile investment, and many employers face barriers to releasing staff to undertake training, particularly in regional areas. Some sectors, such as meat, have a strong tradition of investing in the training of their workers and in delivering this training on the job. Improving the skills profile in this industry is a challenge given the history of an informal training culture in many sectors. Many employers lack the capabilities and knowledge to undertake workforce planning, and to access training opportunities for their staff. There is also a widely held view that higher education graduates are not work-ready and that there is a mismatch between the knowledge and skills developed through their education, and those required on the job. This is also an issue in the VET sector. Quality and industry relevance of education and training delivery is a key priority identified by stakeholders.As these factors continue to impact on the industry, retention, replacement, succession planning and attraction have become priority issues. As the industry transforms there is an opportunity to think of new ways of organising work and providing rewarding jobs and careers across the industry, and within regions. Demonstrating the value of investing in skills and workforce development, and assisting firms to undertake workforce planning are priorities.Developing the business management, leadership and entrepreneurial capabilities of the workforce is also critical in attracting and retaining workers to the industry and promoting high-performing work practices. Future success will depend on lifting the skills profile of the workforce and developing a commitment to lifelong learning and skills use in workplaces. There are many initiatives already in place designed to promote and support skills and workforce development across the industry, although coverage is not consistent—some sectors are more advanced than others in their workforce development practices. AWPA also notes that there are few cross-sectoral initiatives, no doubt a reflection of the lack of identified career pathways between sectors and the lack of an identified coordinating body for skills and workforce development.A range of strategies has been proposed by industry and other stakeholders to address the issues identified in this study. Many of these are reiterations of previous recommendations made to other studies and inquiries. This report does not seek to duplicate previous recommendations; rather, it focuses on where this study can add value.The following sections discuss the issues AWPA sees as important and make recommendations about initiatives and structures to support the future development of the food and beverage industry’s workforce.
A coordinated approach into the futureThe challenges and opportunities facing the sector will require the industry to further adapt as the knowledge and skills required across all aspects of the supply chain evolve. The education and training sector, government agencies, and the food and beverage industry (including peak industry groups and
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unions)—working in partnership—can assist the industry to develop the adaptive capacity it needs. As discussed in Part One, a large number of bodies have an interest in and responsibility for elements of the food and beverage workforce. It is important to understand what these respective responsibilities are, and to identify where overlap exists and gaps remain.There is also a wide range of workforce, skills and training initiatives being undertaken by government, training and industry bodies to address workforce development across the industry. Initiatives are administered by the Australian Government (including the National Workforce Development Fund), state and territory governments, industry associations and training and education providers. Programs range from school-level activities to raise awareness of food career paths, to university scholarships, industry placements, workforce planning, workforce participation strategies, skills development and leadership programs. As part of this study, AWPA has compiled a stocktake of current skills and workforce development initiatives across the industry (refer Appendix C). The agency has also showcased a number in case studies throughout this report.However, these efforts are not coordinated and there remain gaps and duplication. The problem is not necessarily a lack of funding to address these issues, but the fact that current investments are generally so dispersed and efforts so isolated that synergies cannot be achieved. In addition there is often limited awareness and understanding of these initiatives by key stakeholders, which further reduces their effectiveness. The need for a coordinating body to take carriage of the agenda going forward is a priority. AWPA has received a strong message from stakeholders that a coordinated approach to workforce planning and development between government, industry and education and training providers is not in place across the industry. This means that available resources are not necessarily being prioritised in the most effective way. It also means that industry advice to government on skills and workforce issues is fragmented.Accordingly, the recommendations in this study are centred on an overarching recommendation—that the workforce development agenda for the food industry be invested in a national coordinating body comprising industry, governments, employee representatives and the tertiary education sector to provide leadership on skills and workforce development across the agrifood industry. The coordinating body should include:
• government members representing relevant state, territory and Australian Government Ministers with responsibility for the food system
• non-government food industry leaders with expertise in skills and workforce matters and a focus on future opportunities for the sector
• representatives of public and private tertiary education providers.
The coordinating body should report directly to relevant Ministers on strategic policy priorities for the food industry relating to education, training, skills, employment and workforce participation. This could be achieved through a dedicated working group of an existing or a new ministerial forum.The coordinating body would work closely with stakeholders, including the AgriFood Industry Skills Council, industry peaks, the Australian Council of Trade Unions (and individual unions as appropriate), the education and training sector and relevant government agencies.The remit of the body would include considering and implementing the recommendations of this study. In addition, it should:
• use the stocktake at Appendix C of this report as a starting point for assessing how existing resources can be used more effectively and how greater collaboration can be achieved
• work with the ABS and ABARES to remedy the data limitations identified in this study• develop and maintain a knowledge base (of research and reports) to inform future skills and
workforce development policy for the industry.
The proposed broad functions of the coordinating body include:
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• providing policy advice to governments on education and workforce issues in the food and agriculture sectors
• developing, implementing and updating a food workforce strategy• bringing greater industry involvement to the design, content, implementation and validation of
education and training courses, with a focus on skills required for an export focus, including consumer insights, leadership and risk management
• providing leadership in integrating the education and training agenda with other government and industry initiatives
• focusing effort on work practices and employer of choice strategies• anticipating future trends and associated skilling requirements• mapping career pathways across and between sectors• providing clarity on roles and responsibilities of stakeholders• promoting careers in food and agriculture industries• taking carriage of further research and maintaining a stocktake of initiatives, including the
dissemination of findings.
Recommendation 1That the workforce development agenda for the food industry be invested in a national coordinating body comprising industry, governments, employee representatives and the tertiary education sector to provide leadership in skills and workforce development across the agrifood industry.
Attracting and retaining a skilled and capable workforceCareer pathways and promotionA lack of identified career pathways across the food supply chain is a key factor inhibiting the attraction and retention of workers. In the past, occupations have been defined, and education and training products developed, based on specific job roles or narrow sectoral approaches—with little focus on core/transferable competencies and capabilities that can facilitate pathways and retention within the broader agrifood supply chain.This study has also identified a general lack of awareness among employers about available training opportunities and a reluctance in many sectors to invest in skills and workforce development strategies.
Recommendation 2That industry bodies, unions and employers work collaboratively at the national level to develop clearly articulated career pathways within and across sectors, linked to available education and training offerings and jobs, to support the attraction and retention of workers, and to build the adaptive capacity of individuals, regions and businesses across the supply chain.
To support this recommendation, AWPA has commissioned a practical research project to build a capability framework for key occupations (current and emerging) across the food supply chain. The
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framework will be used by food industry firms, advisers and brokers to identify the future (desired) workforce skills profile against:
• core skills (required across all key job roles, current and emerging)• functional skills (common skills required by multiple job roles) • job-specific skills.
These skills will then be mapped against existing units of competency from national training packages. This will provide a tool to help identify pathways within and between the sectors that can be promoted to new entrants and existing workers. It will also help identify industry-relevant competencies and gaps in current training products and provision. Having this framework will allow jobs and competencies to be described in a way that can be used by firms to attract and retain workers through better appreciation and use of their skills and by helping them plan further skills development.
Website promotes agrifood career optionsThe Career Harvest website provides information on more than 250 professional agrifood careers for prospective students and people considering a change in career.156 It was created in 2011 through collaboration between the Australian Council of Deans of Agriculture (ACDA), DAFF and various bodies across the agriculture and education industries.Through the website and social media, Career Harvest outlines and explains available professional careers and entry pathways, including the skills and education required for different positions. Career Harvest also has testimonials from people working in their chosen careers.ACDA Secretary Professor Jim Pratley, said the deans were very excited to see Career Harvest provide a new perspective on careers in the food and fibre industry.‘We’re hoping that we will see quite a dramatic shift in people’s attitude to careers in the agricultural industries,’ Professor Pratley said.‘It’s about informing them of the existence of the great and diverse opportunities about which people in the past have not been really aware. Career Harvest brings them up to speed with what opportunities there really are, not what are perceived to be.’The Career Harvest website shows users where to find more information about education options and a career mentoring program is planned. The site is being developed to identify internship and scholarship opportunities. While the website focuses on career planning it does not advertise job vacancies.
AWPA expects that the framework will be used by industry and the education and training sectors to identify opportunities for:
• articulation/bridging courses between VET and higher education courses• the need for new delivery arrangements, such as dual sector provision of cadetships for emerging
paraprofessional occupations• recognition of prior learning among existing workers and those seeking to enter the industry,
including recently arrived migrants, re-entrants, women and Indigenous Australians• informing the design and delivery of VETiS programs
156 www.careerharvest.com.au
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• the development of further regional skill ecosystems and labour-sharing models, incorporating pathways for displaced workers (based on the successful initiatives discussed in Part One).
The framework will also support the development of a broad career promotion strategy by the industry. This must be supported by independent high-quality careers advisory services that focus on the needs of individuals, regardless of age or educational background. The strategy should be based on an understanding of the ways in which people are attracted, developed and retained within the industry.
Rewarding and empowering workersWodonga Abattoir developed the Core Program to reward and empower workers who display key qualities and to help retain these individuals as its core workforce.157 Dedicated employees with over a year’s experience at the abattoir can be nominated to be a part of the program in recognition of their natural leadership ability; reliability and flexibility; positive attitude; and ongoing support for other employees. There is a rigorous assessment process to attain membership of the Core Program and only exemplary employees are admitted.Benefits of being a Core member include ‘first right’ during times of labour oversupply, a higher compliance bonus payment rate, retention of a higher rate of pay if required to do tasks at a lower classification, favourable consideration for promotions, career development and work opportunities. Core members, recognisable in the workplace by their different coloured hairnets, also sit on the employee consultative committee, buddy new employees and provide support to all other staff. The Core Program drives continuous improvement, gives employees an incentive to raise new ideas and facilitates the professional development of workers. The reduced turnover also provides significant savings for the company.
Work experience and mentoring
Other strategies AWPA believes will support the attraction and retention of workers include opportunities for individuals to ‘try before they buy’ through the provision of short-term work placements in industry—while people are still studying or through programs designed to assist unemployed and displaced workers. Engagement of employers in this process will assist them to think about attraction, job design and workforce planning—all elements of high-performing workplaces. Schemes such as Primary Industry Centre for Science Education (PICSE) facilitate these types of opportunities for individuals interested in science professions in the agriculture industry. AWPA sees scope for the role of PICSE to be expanded to other food-related science careers as well as to occupations at the paraprofessional and skilled levels across the agrifood industry.
157 Australian Meat Processor Corporation, Processor of the Month, available at ampc.com.au/processor-of-the-month, accessed 28 August 2013.
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Primary Industry Centre for Science EducationPrimary Industry Centre for Science Education (PICSE) is a national program aimed at increasing the numbers of talented young people in science-based careers in the agrifood and fibre industries. There are five components to the program:
• Science Education Officers (qualified science teachers) give science-based class presentations, aligned to the curriculum, showing the range of careers available in science, primary industries and allied industries, to Year 11 and 12 students in partner schools.
• Science and Engineering Investigation Awards encourage students to investigate an agrifood or fibre topic. This gives them personal insights into those topics and assists them to develop a personal understanding of food origin. The hands-on awards are complemented by an online program that focuses on more remote and urban students beyond PICSE partner schools.
• Science-based professional development sessions are delivered for secondary science teachers, including creation of teacher professional development and classroom resources.
• Industry Placement Scholarships give school students hands-on experience in science- and agriculture-related industries. The scholarships include a five-day industry science induction camp, followed by five-day student industry placements over the summer holidays with industry scientist professionals in specific local industries or research organisations.
• One-week internships are arranged for first-year undergraduate science students and for secondary science teachers within industry/research organisations.
PICSE also offers a science camp for interested Year 10 students with a focus on connecting schools with primary industries research in local areas. The program runs through nine industry and university-based centres, and there are plans to expand to 14 centres in the next five years. The independent impact evaluation revealed:
• Of the 211 PICSE graduates tracked in 2012, 124 attended PICSE partner universities (87 went to non-partner universities).
• The industry placement program has directly influenced at least 45 per cent of students during 2011–12 in their senior years to reconsider their study options from non-biosciences towards the biosciences (and strengthened the commitment of other participants who were already on this track). This number is greater when the influence of other activities such as the teacher professional development and the awards is considered.
• The teacher professional development program continued to grow from an initial 102 to 153 participants in 2011–12. There appears to be high repeat participation and ongoing intention to participate (significant because of the high level of influence of teachers on student career decisions and the multiplier effect on teachers across other classes and in subsequent teaching years).
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Recommendation 3That industry and the tertiary education sector (VET and higher education) provide better information on opportunities in the industry to potential students to address the decline in enrolments in degrees in science and technology fields relevant to agriculture and food processing. In addition, that the role of the Primary Industry Centre for Science Education (PICSE) be expanded to other food-related science careers, as well as to occupations at the para-professional and skilled levels, to increase the exposure of individuals interested in careers in the agrifood industry to workplaces and practices.
For unemployed and displaced workers, particularly those located in regional areas, the role of Local Employment Coordinators and Regional Employment, Skills and Jobs Coordinators in finding work placements in industry is critical. Regional training providers also play an important role in providing work experience and mentoring for students.AWPA also sees the need for greater effort to link new graduates with available jobs and to support new entrants once they enter the industry. South Australia’s Graduate Access Program (GAP) links new graduates with employers seeking workers and provides mentoring support.
Graduate Access ProgramGraduate Access Program is a collaboration between Food SA, the South Australian Research and Development Institute and Primary Industries and Regions South Australia linking new university or TAFE graduates with food enterprises looking to fill a skills gap.158 Graduates can be employed from a wide range of disciplines and their employment costs are subsidised by the program.159 The scheme gives graduates valuable on-the-job experience and mentoring and enables both employers and new graduates to test the ‘fit’ during a six-month placement before committing to ongoing employment. In the majority of instances, graduates remain with their employer.
AWPA supports the continued funding of this program and encourages other jurisdictions to replicate the GAP model and to investigate the supporting structures that might fund/host it. There is also the potential for a national model to be developed to achieve greater scale and impact.
Professional development and resources for teachers and careers advisersAWPA also endorses the various recommendations made elsewhere about the need for promotional/awareness-raising campaigns about opportunities in the agrifood sector; and the need for resources and professional development of science and agriculture teachers and careers advisers. Importantly, the agrifood industry should be promoted as a single industry with diverse science and technology-oriented careers. The allocation of $1.5 million to develop resources and provide professional development to support teaching about food and agriculture through the Australian Curriculum is a good start. This initiative is being led by AgriFood Skills Australia, in conjunction with the Primary Industries Education Foundation (PIEF).All individuals, regardless of age or educational background, should have access to independent high-158 Food South Australia, Graduate companies a boost for food companies and students, available at
foodsouthaustralia.com.au/2013/06/graduate-program-a-boost-for-food-companies-and-students, accessed 28 August 2013.159 South Australian Research and Development Institute, ‘Graduate Access Program’,
sardi.sa.gov.au/foodinnovation/collaborations/graduate_access_program_gap, accessed 28 August 2013.
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quality careers advisory services. This will support the retention of workers within the food supply chain, including those displaced from sectors where employment is contracting, and help attract mid-life career changers. These advisory services must be linked to appropriate training opportunities focusing on upskilling, reskilling and bridging courses.
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OneHarvest—Innovative staff attraction strategiesFresh produce grower, processor and marketer OneHarvest has actively developed a range of initiatives to help attract and build a skilled and committed workforce.OneHarvest, which employs up to 1,000 people across the country, had found that not only was the labour market in Australia very competitive, but that the food and fresh produce industry was not the first choice of career pathway for most people.The company’s response is the Talent Pathways suite of attraction programs, which tackles the problem from a number of different angles:
• School-based initiatives—OneHarvest builds relationships with schools close by their business premises (in the Northern Territory, Queensland, Victoria and Western Australia), getting involved in school fairs, class presentations and ‘field to fork’ days to highlight career options in the industry and pathways to those careers.
• Internships—Tertiary students are offered industry placements to ‘sample’ work at OneHarvest and in the industry. Currently in its seventh year, this program offers students from multiple disciplines and different states an opportunity to have work experience in their chosen field. The disciplines vary from human resources, finance, engineering, quality assurance, new product development, marketing, production and supply chain. In 2012, of 36 interns OneHarvest employed nine at the end of the internship.
• Graduate recruitment—OneHarvest maintains an ongoing presence at university career fairs, strategically targeting particular disciplines. This year OneHarvest was able to attract over 300 graduate applications by attending the career fairs and advertising on university websites. In addition, OneHarvest partners with particular schools (including the Royal Melbourne Institute of Technology, Curtin University and the University of Queensland) to coordinate site tours and campus workshops.
• Referral bonuses—OneHarvest offers incentives to current employees for referring their family and friends as potential candidates for seasonal recruitment intakes.
• Social media—OneHarvest’s new strategy of attracting staff is to use LinkedIn as a primary driver for professional recruitment.
• Internal recruitment—OneHarvest looks within its existing workforce first when recruiting for new and exciting roles. Not only does this help develop a more skilled workforce, but it also motivates staff to know that career opportunities are available.
• Working Adventures—OneHarvest attracts students who want to have a working holiday as well as grey nomads and backpackers through its web-based program Working Adventures. The site encourages holiday makers to work for OneHarvest and helps them to plan a holiday route between OneHarvest’s many locations. This helps attract seasonal workers.
• Employee scholarship program—Open to the children or grandchildren of current employees, the employee scholarship program offers $6,000 annual scholarships to assist with the cost of tertiary or further studies.
OneHarvest, a wholly Australian-owned family business, supplies a range of fresh produce to supermarkets and greengrocers around the country, including pre-packed salads and stir-fry vegetables, prepared deli salads, fresh chilled meals as well as seedless watermelon, avocadoes and Calypso mangoes.
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MigrationMigration will continue to play a role in filling gaps in local labour supply, and it is important that that there are appropriate migration programs in place to attract workers to the agrifood industry and to regional and remote areas. Migration can improve flexibility in the labour market, raise skill levels and support productivity growth. However, it is critical that it does not dampen incentives to undertake long-term training and development of the current Australian workforce, which might lead to lower productivity outcomes over the longer term.160
The migration needs of the agriculture and horticulture sectors, in particular, differ from many other sectors, being focused on the need to attract semi- and lower skilled workers for seasonal/harvest work, almost all of which is located in rural and regional locations. For highly specialised science and technical professionals, Australia will continue to compete in the global marketplace for skilled workers.Australia’s migration policy is strongly focused on skilled migration and ensuring that employers have made genuine attempts to recruit and train local workers before attracting migrants. The capacity of the agrifood sector to access skilled migrants through the employer-sponsored 457 skilled visa program is limited due to the small number of occupations included on the Consolidated Skilled Occupation List (CSOL) used by the Department of Immigration and Citizenship (DIAC) for targeting this program. The CSOL includes most skill level 1 to 3 occupations as defined by ANZSCO which have as a minimum qualification a Certificate IV or Certificate III with two years post qualification on-the-job training. Industry submissions to this study suggest that the CSOL is flawed as it is based on outdated ANZSCO occupational and skill level classifications. To address this concern, employers or regions facing shortages of semi-skilled workers are able to negotiate labour agreements with DIAC. This process includes a detailed analysis of occupational and skill requirements and the development of a template that can be used by employers. Currently, a Labour Agreement is operating in the meat sector and work is occurring in the pork and fishing sectors. Again, some stakeholders have commented that the option to source workers though Labour Agreements is complex, time-consuming and costly: ‘the delay in processing Labour Agreements means a delay in getting skilled migrants and the potential to not meeting deadlines, which is a risk that business cannot afford to take’.161 Further, the requirement for employers/regions to provide evidence of local skill and labour shortages is hampered by the data limitations described in Part One. The annual environmental scan conducted by AgriFood Skills Australia provides up-to-date information on skill and labour requirements across sectors and regions, gathered through an intensive consultation process. This information is a useful source of data to inform migration policies and programs for the sector.The skilled migration program is complemented by other visa arrangements that provide opportunities for employers to engage temporary workers for seasonal/harvest work. The Working Holiday visa categories and the Seasonal Worker Program are particularly important for the agrifood industry.According to some stakeholders,162 while the Working Holiday visa program provides an additional pool of workers, particularly for the horticultural industry, the nature of the visa conditions means employers inevitably lose workers after six months investment in training and experience. These stakeholders believe that agricultural employers should be provided with greater flexibility to retain workers by being able to offer employment beyond the current six-month limit. While noting this, it is important to remember that the primary aim of the Working Holiday program is to promote cultural exchange between Australia and other countries. According to DIAC, working holidaymakers may work for the full duration of their 12-month stay in Australia, but may not remain with any one employer for longer than six months. In 2005, a Working Holiday visa category (417) was introduced that allows first-time visa holders to undertake 88 days 160 Chamber of Commerce and Industry of Western Australia, submission to AWPA food and beverage study.161 Chamber of Commerce and Industry of Western Australia, submission to AWPA food and beverage study.162 Chamber of Commerce and Industry of Western Australia, submission to AWPA food and beverage study; National Farmers’
Federation, submission to AWPA food and beverage study.
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specified work in regional Australia during their stay to acquire eligibility to apply for a second such visa. Specified work includes work in the agriculture, mining and construction industries.Between February 2009 and September 2012 the Australian Government piloted the Seasonal Worker Program. Following the pilot, the program has 12,000 places available over the next four years and is open to workers from nine participating countries—Kiribati, Nauru, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste, Tonga, Tuvalu and Vanuatu.The Australian Government is also running a three-year trial of the use of seasonal workers in selected regions with accommodation providers, aquaculture ventures and cotton and cane growers. Specific regions throughout Australia have been selected for each industry in the trial.Evidence suggests the program has not had extensive pick-up across the agrifood industry. Some stakeholders have suggested that an expansion of the agrifood sectors eligible to use the scheme could make it more effective and that better promotion of the scheme and training provision in home countries may also make the program more effective. DEEWR is scheduled to review the operation of the scheme in 2014 and these issues should be considered as part of that review.
Recommendation 4That the Australian Government’s 2014 review of the Seasonal Worker Program considers the issues identified by industry stakeholders in this study.
Developing and using the skills of the existing workforceAs discussed in Part One, if Australia is to make the most of longer term opportunities arising from the Asian century, it is important to know what future demand might look like and to assess whether domestic capability exists to meet this demand. This means putting in place strategies to ensure Australian food producers and processors have the skills, knowledge and capabilities to take advantage of the opportunities. Key skills required include leadership, management, mentoring, risk management and the ability to speedily translate research and development into business processes along the supply chain. The imperative to improve productivity means that the continual upskilling and reskilling of the workforce, and the better use of existing skills, are becoming more important. The industry will need to continue to adapt as the knowledge and skills required across the supply chain evolve. Developing the business management, leadership and entrepreneurial capabilities among businesses will be critical. Continued efforts to develop language, literacy and numeracy skills (including digital literacy) across the workforce will also be important. This is not just an issue for workers from culturally and linguistically diverse backgrounds, but is an across-the-board priority.According to AgriFood Skills Australia, ‘Building the adaptive capacity of individuals and enterprises to alleviate the impact, and where possible, capitalise on new opportunities is paramount’.163
Initiatives such as the Enterprise Connect Food Network have an important role to play here. The Food Network is a specialised national group, bringing together business advisers with the expertise and networks to assist businesses in the food and beverage processing sector with an annual turnover of between $1.5 and $100 million. The program offers eligible businesses a free comprehensive, confidential and independent business review to help them reach and transform their potential. The program has helped to build lasting capability and address gaps for large numbers of food manufacturing businesses, which do not have their own in-house business performance and/or R&D capacity.
163 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 10.
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Links between existing initiatives aimed at businessAWPA also believes there should be closer links between existing government programs to ensure that businesses receive holistic support and that workforce and skills advice is integrated with broader business advice. These services should be tailored to the needs of each business, with a focus on its maturity and how it can move to the next stage of development. Opportunities exist for a much closer alignment between programs such as Enterprise Connect and Skills Connect, including the NWDF.164 This should also encompass similar programs run by state and territory governments.Skills Connect provides enterprises with access to government assistance, funding and resources targeted at skills and workforce development. While Enterprise Connect focuses on capability within a firm, there are opportunities to work with clients on issues relating to workforce planning and skills, not only to provide a better, more holistic service to clients but also to more effectively harness the skills and resources available within a business. This opportunity could be further supported through joint funding arrangements between Enterprise Connect and Skills Connect which would see the two agencies able to develop a range of services focused on supporting workforce development and planning improvements.For instance, applications to the NWDF for skilling new or existing workers could be embedded into the tailored advisory service grants offered by Enterprise Connect. Streamlining these government program processes has the potential to offer businesses effective avenues for implementing innovative workforce development plans. Consideration might also be given to the development of a framework for service provision that includes key performance indicators for the programs, and offering and funding skill sets in workforce development to assist with the capability development of service providers.165
164 Australian Workforce and Productivity Agency, 2013, Future focus, 2013 National Workforce Development Strategy, AWPA, Canberra, p. 56.
165 Australian Workforce and Productivity Agency, 2013, Future focus, 2013 National Workforce Development Strategy, AWPA, Canberra, p. 57.
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Rural Industry Training and ExtensionWith the help of the NWDF, the Rural Industry Training and Extension (RITE) training organisation has assisted 16 farmers and cattle station owners to deliver accredited training in agriculture and livestock management to more than 100 workers.The funding addresses the fact that rural and remote enterprises face challenges in attracting and retaining skilled station hands and workers in agriculture and beef cattle production in the remote communities of Northern Australia. RITE specialises in delivering nationally recognised training to such regions and operates across Queensland, the Northern Territory, Western Australia, South Australia and New South Wales, with offices located in Charters Towers and Katherine.Identifying skills shortages within these sectors, the NWDF enabled RITE to tailor courses to match the requirements of workers with the needs of the employers. The highly practical, hands-on nature of the training and physical resources required—including, for example, skilled trainers, stockyards, cattle, horses, sheds and farming equipment—meant that the cost of training was prohibitive without Australian Government support.Margaret Callcott of the family-owned and -run cattle station Ellenvale, in Charters Towers, says, ‘providing training for employees is often a difficult exercise as the location of most courses are over 200kms away and the cattle station cannot be left unattended’.NWDF funding assisted with the cost of travel and accommodation to and from the training sites, which were mostly on remote cattle stations.‘The fund has increased the availability of qualified head stock men and women and station hands to this specialist industry,’ says Russell Toohey, Managing Director of RITE.The training has provided practical skills for employees and the business skills required for farm and station management such as budgeting, staffing and keeping up to date with industry standards, laws and innovations.Margaret Callcott says the training, ‘has given my son and daughter the confidence, and people skills to lead our team of station hands and pursue other opportunities’.Following a Certificate IV in Agriculture, Margaret’s daughter, Sheridan Callcott, is currently gaining further experience and knowledge on a Canadian ranch.
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Recommendation 5That AgriFood Skills Australia works with Enterprise Connect and Skills Connect to develop joint funding opportunities (including through the National Workforce Development Fund) to achieve greater alignment of business improvement and skills programs that support workforce development for businesses in the food and beverage industry. This work should also explore opportunities to co-fund initiatives with similar programs run by states and territories.
Funding modelsFunding models also play an important role in influencing who gets access to training, upskilling and ongoing professional development. In Part One, this report discussed the institutional framework for skills and workforce development in Australia and highlighted the complexity of the various funding models (including student entitlement policies) and regulatory arrangements for education and training which exist across jurisdictions. The complexity and inconsistency between jurisdictional funding models has been identified by stakeholders as an issue requiring attention.Industry is of the strong opinion that, apart from the professions and trades, the preferred learning model for the agrifood industry is an incremental one. As AgriFood Skills Australia puts it, ‘the agrifood learning culture is typically incremental, socially embedded and occurs over a lifetime’.166 While this may be the case, it is important to acknowledge that success in the future will depend on the industry having a learning framework that supports the speed-to-market of new ideas and the required culture shift with respect to developing an outward focus.Stakeholders have reported that the Australian Government’s primary funding mechanism aimed at meeting industry’s skilling needs—the NWDF—is not meeting many of the needs of the agrifood industry. While a number of successful programs have been run within agrifoods, stakeholders argue that the eligibility criteria and co-contribution requirements are disadvantaging the industry, for example in sectors where Certificate II is the accepted entry level qualification.Industry’s view is that both existing and new workers should have access to Certificate II level training through the fund. Currently, the NWDF guidelines provide funding for Certificate II to be undertaken by new workers, but existing workers require a ministerial waiver.Further, industry believes that the requirement for workers to have a pre-existing qualification at the Certificate III level or above to be eligible to access funding for skill sets is considered a barrier precluding many workers from the sector accessing the skills they need.167 Industry is also of the view that public funding for skill sets should be extended to any combination of units of competency that meets industry and individual learner needs (in addition to funding of skill sets that have been endorsed in training packages).In making these points, industry is clear that it is not trying to undermine the role played by qualifications; rather, it is seeking more flexible arrangements that acknowledge the workforce structure of the industry, which does not suit a one-size-fits-all model.As discussed in its Future focus, 2013 National Workforce Development Strategy, AWPA recognises that Certificate II is a key entry point for sectors such as meat, food processing and agriculture. This study has reinforced that Certificate II level qualifications are widely used within the agrifood industry; however, there has been a steady trend towards Certificate III level qualifications. It should also be noted that it is not a straightforward task to analyse the use of Certificate II level qualifications and skill sets (in any industry) or to determine what factors may be driving trends in their use. It is also difficult, 166 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. iv.167 AgriFood Skills Australia, 2013, 2013 Environmental scan of the agrifood industry, AgriFood Skills Australia, Canberra, p. 24.
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in the absence of any documented requirements as such, to define and measure what the industry standard is. It is likely that it will be most useful to seek industry advice on a sector-by-sector basis when making funding decisions.While the trend towards Certificate III level qualifications is welcomed, it is clear that there will remain many jobs within the sector where Certificate II is deemed the appropriate level. It is arguable that workers in these jobs can improve their productivity (and be rewarded through pay increases) by gaining additional skills that do not necessarily require a full qualification (but may lead to one over time). This can be achieved through the acquisition of skill sets. Where these are endorsed in training packages, they have portability and recognition among employers and across jurisdictions, an important consideration from AWPA’s perspective.Further, as shown in Part One, a large proportion of the current workforce has no post-school qualification, particularly in agriculture. If we are to going to be successful in raising the proportion of the workforce with qualifications, it is likely that a significant number—particularly those who left school early—will need to enter study at the Certificate II level.Given this, AWPA is of the view that, in sectors where Certificate II is regarded as the industry standard qualification, public funding for existing workers should be available. A logical extension of this is that existing workers with a Certificate II should also have access to publicly subsidised skill sets, where these are endorsed in training packages.The NWDF’s co-contribution funding model has been identified by some stakeholders as a disincentive for businesses wanting to access funding, particularly micro-businesses (fewer than five employees), which may be deterred by the 33 per cent contribution required from them. Program data for the NWDF for 2011–12 does not include data on uptake by micro-businesses; however, it does show that approximately 56 per cent of learner enrolments are from businesses with less than 100 employees. Learner enrolments from small businesses with fewer than 20 employees are around 30 per cent.AWPA is currently doing more analysis on the uptake of the NWDF among micro-businesses. This should be complemented by evidence gathered by AgriFood Skills Australia. It should also be noted that the NWDF’s co-contribution model has been cited as an impediment for larger businesses, which generally have significant numbers of workers to train, but which operate on very small profit margins.
Recommendation 6That governments provide public training subsidies for existing workers to access Certificate II level qualifications and subsequent skill sets in sectors where Certificate II is the industry standard qualification, in order to increase the number of workers within the industry who have nationally recognised qualifications and to support upskilling/reskilling and pathways between sectors. This should be monitored as the industry progressively moves towards Certificate III as the industry standard.
For the farming sector, primary industry ministers have agreed to a new national approach to farm business training, recognising that training is an important part of building farmers’ capacity to prepare for and manage risk, and that improved business skills support the productivity, profitability and viability of farm businesses. The approach will be based on the development and roll-out of one or more farm business skill sets. Governments are working with AgriFood Skills Australia and key members of the farming and training sectors to develop the new skill sets. It is expected they will include a mix of relevant business skills and draw on the Farm Planning Program, which was trialled as part of the pilot of drought measures in Western Australia. Each state and territory is responsible for its own arrangements to encourage the uptake of the new farm business skill sets. The new arrangements will be in place by 1 July 2014.
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Leadership and development programsThe industry has a strong history of funding and implementing leadership initiatives for its workforce, for example the Nuffield Scholarship (and various other prestigious industry-wide scholarships), and programs focusing on specific sectors such as the Developing Dairy Leaders Program and the Australian Grains Farm Leaders Program. The Australian Rural Leadership Foundation runs several programs that operate across sectors and a number of other industry groups provide scholarships towards these. The Fisheries Research and Development Corporation, in conjunction with Rural Training Initiatives, runs the successful National Seafood Industry Leadership Program, which equips members of the seafood industry with the necessary leadership skills, networks and whole-of-industry perspective to help them influence the future of the sector.These types of programs are intended to attract and retain high achievers to the food and beverage industry by making the potential career pathways in the industry more visible. They also ensure that the next generation of agricultural leaders is trained in the practical and technical skills they will need to be successful in the future. A number of programs include a mentoring component to assist candidates to further their careers and take on leadership roles.
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Nuffield helps Gurra Downs Dates create crops for an uncertain climateFacing the effects of prolonged drought and increasing salinity on their farm near Berri in the South Australian Riverland some years ago, Dave and Anita Reilly began to investigate alternative crops to their existing wine grapes, which were not coping with the climatic conditions.It was initially a series of local and international studies that influenced them to settle on dates as the most viable option, among a selection of other alternatives including figs, olives and bush tucker.Locally available date varieties were not ideal and quarantine issues prevented the purchase of palms from the Northern Territory or overseas, so the Reillys decided to import plant material that was free of disease and pests. They studied extensively and since 2001 have run a micro-propagation centre and nursery at Gurra Downs where they use tissue culture techniques to cultivate plant stock.Once their propagation operation was underway it became clear that Dave and Anita were at the frontier of Australian knowledge about date production. This meant that further opportunities to learn about date production would need to come from overseas.Funding through the Australian Government’s New Industries Development Programme helped establish the Reillys’ greenhouse facility for plant multiplication, and funded a trip to the Arab Gulf to investigate export opportunities and new varieties.Most recently, as winner of the 2012 Nuffield Scholarship, Dave was able to spend several months in leading date-producing nations studying their methods. Dave credits this experience as a great investment in the future of the Australian date industry.‘Now I have returned with a clear direction on the best ways to proceed in terms of how to manage opportunities for further growth and how to minimise labour/cost inputs in our date plantation.’On the scholarship Dave visited United States, Mexico, France, United Kingdom, Spain, Egypt, Kuwait, Oman, India and the United Arab Emirates, all selected for specific aspects of their date industries. He spent time studying the management practices of leading commercial plantations, processors, nurseries and research institutions, including labour-saving techniques such as the use of mechanisation.The tour allowed Dave to view a broad range of innovations and management practices of value to the Australian date industry, some of which will be implemented at the Gurra Downs Date Company Pty Ltd/RIRDC field trial demonstration site. He was also able to look at different date varieties not grown in Australia and to see how varieties that are new to Australia perform when more established. Information acquired through the scholarship will be shared among growers, research organisations and funding agencies, policymakers, scientists and industry organisations.Another problem with pioneering a new product in Australia has been a lack of specialist trainers to train staff for date horticulture. With funding from the National Workforce Development Fund, Dave and Anita are now undertaking a Certificate IV in Training and Assessment and in partnership with a local RTO are developing training programs. This will allow them to train new workers as date production expands, which will benefit both the business and the date production industry for
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years to come.
The Developing Dairy Leaders Program and the National Seafood Industry Leadership Program are both (at least partially) funded through industry levies. Other programs are supported by industry associations and some require individual or employer input. AWPA supports the ongoing development of such initiatives and encourages sectors to look at the available schemes and to consider developing or improving their own if necessary. As with the other initiatives discussed in the report, it is likely that the impact of such schemes could be enhanced by a more coordinated approach, particularly given the common theme of leadership and career pathways.
Leadership program creates big fishThe National Seafood Industry Leadership Program aims to provide members of the seafood industry with the necessary leadership skills, networks and whole-of-industry perspective to help them influence the future of the Australian seafood sector.168
Designed in consultation with the seafood sector, the program focuses on developing the skills of its participants at three key levels—personal, business and national industry. Throughout the program, participants are exposed to new and effective ways of handling conflict, improved communication techniques, high-performance team building, change management and media training. Participants are also provided with the opportunity to forge strong links with industry leaders, government decision makers and other key stakeholders through mentoring opportunities, industry information sessions and participation in networking events.The program is funded by the Fisheries Research and Development Corporation and its co-sponsoring industry partners, and run through Rural Training Initiatives.Previous program graduates have gone on to apply their skills in a wide variety of areas, including regional network development, regional and state industry association boards, reference committees and effective business and workplace management.169
Extension servicesAs technologies evolve, speed-to-market of agrifood-related research and development on new products and processes will become increasingly important. Traditionally, state governments have played a key role in communicating research outcomes to primary producers in a practical way to help them adopt new innovations. Over recent years some state governments have reduced their investment in promoting adoption of research outcomes, and the private sector is increasingly delivering some of these extension services. The extent to which this has occurred is unclear, and there is a potential risk that innovation will slow in the sector because of inadequate take-up of new methods and technology.This has also resulted in direct costs for business and is a potential disincentive to further information dissemination and sharing. According to AgriFood Skills Australia, while private companies play an 168 Fisheries Research and Development Corporation, FRDC development opportunities, available at
frdc.com.au/research/people_dev_prog/Pages/dev_opportunities.aspx, accessed 28 August 2013.169 Fisheries Research and Development Corporation, FRDC development opportunities, available at
frdc.com.au/research/people_dev_prog/Pages/dev_opportunities.aspx, accessed 28 August 2013.
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increasingly significant role, producers with limited resources are unable to pay for such services.As this services sector evolves as a core segment of the broader agrifood workforce, it will be important to ensure that producers and processors continue to have access to independent quality advice and that they have confidence in service providers.According to the Australian Institute of Agricultural Science and Technology (Ag Institute Australia, the peak organisation representing professionals in agriculture),170 there is widespread acknowledgment within the institute and the specialist discipline societies, that all professionals in agriculture and natural resource management who are interacting with clients, should be accredited and meet minimum standards of knowledge and ethics.AWPA believes this type of industry self-regulation, based on ongoing professional development tied to accredited training modules, is a positive initiative that should be supported across the food supply chain and perhaps extended to paraprofessional occupations. However, more work should be done within industry to scope the best model/approach. The National Primary Industries Research, Development and Extension Framework has initiated a project to map extension capabilities throughout the rural research, development and extension (RD&E) system. The outcomes of this work will help participants in the system to identify and address gaps in extension services. AWPA also supports recommendations made elsewhere to maintain the rural research and development corporation model to boost productivity through advances in collaboration, science and innovation.
Demonstrating the value of skills and workforce development to employers
Helping employers help themselvesSeveral existing initiatives focus on helping workplaces to improve their workforce development practices and become ‘employers of choice’. For example, South Australia’s Food, Tourism and Hospitality Industry Skills Advisory Council, in conjunction with Meat and Livestock Australia, produced materials informing employers on how to attract, recruit and retain the people they want to employ.171 This initiative highlights employee development and ‘career progression’ as key issues in both attracting and retaining good employees.The Make it Work program in Narrabri, New South Wales, also focuses on giving employers the tools they need to improve people management practices and structures to provide a better employee experience. This includes areas such as job design and titling, employment and remuneration packaging, work organisation and skills use.172
Industry stakeholders have indicated that there is a general reluctance within the food industry to view traditional forms of training as an investment in the same way that purchase of capital equipment is viewed. It is also acknowledged that agricultural employers need to develop the capabilities to 170 Including those in commercial agribusinesses (employees or self-employed) and the public sector (government advisers,
university academics and researchers or teachers in educational institutions).
171 Food, Tourism and Hospitality Industry Skills Advisory Council, Meat Industry Attraction and Retention Project, available at fthskillscouncil.com.au/cgi-bin/page.cgi?id=109, accessed 12 July 2013.
172 ACIL Tasman, 2010, Developing the Narrabri workforce: An assessment of the potential impact of the Workforce Development Strategy in Narrabri, AgriFood Skills, Canberra, p. vii.
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integrate workforce planning and development into their business planning and to adopt ‘employer of choice’ attributes.173 An employer’s decision to invest in training will depend largely on its particular needs, values and commitments, and knowledge of the options available. AWPA has been told this varies across the agrifood industry. Stakeholders also comment that undertaking training is complex for many within the industry for a number of reasons, including the predominantly regional and remote location of the workforce and the limited ability of businesses with small employee numbers to invest in training. Measures to enhance access to education and training in rural and regional areas, such as increased use of information and communications technology to deliver courses, will be increasingly important. Submissions to this study have highlighted the potential for knowledge transfer models such as massive open online courses—MOOCs—to address the challenges of regional delivery. The National Broadband Network, combined with an online platform to connect people, communities, researchers, extension officers and providers, could be the distribution model that agrifood needs in response to the diversity and extent of its challenges.174
173 National Rural Advisory Council, NRAC work program 2012–13, available at www.daff.gov.au/agriculture-food/drought/nrac/work-program, accessed 10 April, 2013.
174 Chamber of Commerce and Industry, Western Australia, submission to AWPA food and beverage study.
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AusKnowledge Network improves distance training outcomesTraining developer AusKnowledge Network has used innovative solutions to improve the way distance training is delivered, with the methods showing improved learning outcomes and completion rates. AusKnowledge Network designs training packages and skill sets for the agricultural sector, with a focus on creating innovative online delivery and assessment systems.A 2009–10 pilot project funded by the Australian Government’s Workplace Innovation Program saw AusKnowledge Network partner with TAFE SA and later Rural Skills Training to deliver a Certificate IV qualification for agricultural advisers. The project aimed to boost participant engagement by using the available technology—a simple set-up of computer with internet and phone—to create a ‘virtual classroom’ where students could interact with each other and with the trainer.The training delivery also required participants to reflect on their job roles as agricultural advisers and to analyse the different skills and tasks involved. Participants were encouraged to relate training topics back to the systems and processes in their workplace so that they could better understand the practical relevance of course topics in their work situations. They were also assisted to identify practical applications for the knowledge and skills gained through the course.A key aspect of the course was that participants could incorporate their coursework into their working days so that they were not required to take time away from their job as part of the training.The pilot course saw 95 per cent of participants complete the course, a significant increase on previous completion rates. Since then, the training methodology has been expanded to livestock and horticulture courses, with similar rates of success for several qualification levels. The only limitation identified was for Certificate III and below, where practical course components make distance education less feasible; however, AusKnowledge Network is also working on distance delivery methods that might help in this area.AusKnowledge Network partner Charles Kidd says that the delivery method used by the company is well suited to Australia, where distance is a major barrier to training.‘This is a training method which is cost-effective and outcome effective … it only remains to be used more widely to make a significant difference,’ Mr Kidd said.
Return on investmentImproving employers’ perceptions of the value of training is central to increasing their level of investment.175 Employers need to be convinced that there will be a return on investment, particularly in the current environment of low margins and high costs. They also need to view the investment as part their broader strategic vision for the future.The business case for investment in training at the enterprise level appears to be poorly understood by 175 Australian Workforce and Productivity Agency, 2013, Future focus, 2013 National Workforce Development Strategy, AWPA,
Canberra, p. 61.
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many employers in the agrifood industry. This may be due, in part, to the reluctance/inability of some training organisations to offer and market their services in a way that demonstrates direct relevance to industry and potential benefits at the firm level. It is also clear that, for many education and training courses, there is limited industry involvement in course development.There is little documented evidence to support the business case for training in the agrifood industry, beyond what is required to meet regulatory standards. To address this, AWPA has commissioned a practical research project to build a body of evidence to demonstrate the return on investment (ROI) experienced by firms across the food supply chain.The project will build on work undertaken to date by AgriFood Skills Australia to establish the conditions under which the ROI in skills and workforce development can be quantified and maximised. That work encompassed an initial literature review and the development of a case study template to gather evidence from firms. It found that real life experiences were being reflected in the literature and that there is a wide variety of ROI returns being generated by investment. This could explain why businesses find it hard to quantify their ROI.The research undertaken to date suggests that, at the firm level, the returns from investing in training extend beyond increased productivity and profitability to include:
• lower costs through the more efficient use of existing facilities, lower consumable costs and reduced human resource expenses
• a higher quality of products and services as a result of a higher level of skill• enhanced customer satisfaction due to timeliness, availability, quality and price of products• fewer occupational health and safety incidents due to improved safety performance• a more flexible and autonomous workforce performing a range of tasks with greater ability to
innovate and a faster rate of adoption of innovations• improved organisational climate, culture and practices from enhanced staff morale• the attraction of skilled workers to the firm because of its development program• staying competitive • improved risk management.
The research also suggests that there are likely to be considerable benefits from having a flexible pool of skilled labour in the agrifood industry. For example, employers and employees may be more willing to negotiate more flexible contracts if there is a sufficient supply of labour and jobs. This is particularly important in regional areas.These initial findings need to be tested more widely (across a broader range of firms, regions and sectors) before a coordinated approach to demonstrate the value proposition to employers can be developed. The current AWPA project will use the case study-based approach developed and tested through the AgriFood Skills Australia project to build a broader body of evidence to demonstrate ROI. This research will explore the potential ROI from interventions specifically aimed at, for example, management capability, cultural change, entrepreneurial skills—compared with more ‘traditional’ technical training.It is anticipated that the project will result in a model that can assist employers across the sector to better understand and measure the ROI for training at the enterprise level. The key objective of estimating ROI is that it will be an important means of encouraging firms to consider training and skilling as a viable investment, as they will be able to see tangible evidence of the returns.The project will be managed by AWPA, and the final results of the project will be provided to a relevant industry body for further development and use.
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Recommendation 7That AgriFood Skills Australia develops a communication campaign aimed at employers across the agrifood supply chain, informed by the results of the Australian Workforce and Productivity Agency’s return on investment research project to encourage more employers to invest in lifelong learning of their workforce and to adopt high-performance work practices.
Workforce planning and development adviceThe National Rural Advisory Council (NRAC) has identified that the causes of labour and skills shortages in agriculture are complex and multifaceted. While a significant focus has been placed on the attraction of new employees to the workforce, less focus has been placed on the workforce planning and human resource capacity of agricultural employers. This impacts on the skilling and retention of employees in the industry.The workforce-planning capabilities of employers is not just an issue for the agriculture sector, but also for employers, especially SMEs, across the broader supply chain. As identified by AgriFood Skills Australia, the issue of workforce planning and development has been somewhat neglected in the various studies, inquiries and policy documents that have looked at agrifood workforce issues over recent years. A gap exists that could be addressed by firms having access to independent workforce development advisers, who can provide assistance with workforce planning and strategy development, including training options. This view is supported by submissions to this study.Industry is supportive of the need for workforce development advisers to assist enterprises and regional/industry clusters with workforce planning and development. Advisers could be located within existing organisations such as peak representative employer groups, Skills Connect, ISCs and unions. Alternatively a dedicated service could be established.The role played by advisers could include:
• assisting enterprises, particularly SMEs without a specialised organisational development arm, to plan for their future workforce and identify skills needs/gaps
• promoting workforce development strategies for attracting, retaining and fully using workers’ skills to boost productivity
• raising awareness of the NWDF with their member or client enterprises and work with interested employers to identify and articulate the skills required to improve productivity
• referring enterprises to relevant RTOs able to customise training• assisting enterprises to identify funding sources for training.
In establishing a network of advisers, and/or using or adapting existing ones, it will be important that practitioners have the skills and competencies required to provide high-quality and independent advice. This might include a requirement that they have undertaken accredited training in workforce planning. The Dairy Australia initiative incorporates this approach.
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Upskilling dairy advisersDairy Australia recognised that many dairy farmers receive much of their business information from independent advisers, but that these advisers don’t necessarily have specialised or up-to-date knowledge about managing people. Together with the National Centre for Dairy Education Australia, Dairy Australia developed the Diploma of Human Resource Management (Dairy).176 The aim of this qualification was to provide the skills and qualification for advisers wanting to work with their dairy farmer clients to increase profitability through a more efficient and productive workforce, to comply with legal requirements, and to have low business risk around people.The diploma provides a theoretical and practical foundation in dairy recruitment, analysis of roles and responsibilities, employment law and industrial relations, policies and procedures, management of working conditions, remuneration and employee benefits, induction processes, separation/termination procedures, training and development issues, succession planning and occupational health and safety.
176 Dairy Australia, Diploma of Human Resource Management (Diary), available at thepeopleindairy.org.au/projects/diploma.htm, accessed 28 August 2013.
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Workforce Hub—a wholistic approachThe Adelaide Business Hub is a successful model for providing workforce development services to micro and small enterprises, especially those needing to re-evaluate direction or gear up for expansion.Originally operating as a pilot called the Workforce Hub project in 2012, the hub is now a permanent part of the business development framework in Adelaide. The hub aims to diagnose and engage small business clients to own the solutions with an expectation that their commitment and investment will be ongoing.Specifically, the hub has assisted to:
• recruit staff for immediate vacancies• create job descriptions and performance management systems• define business strategy to identify job roles• develop more efficient booking systems to manage growth• develop strategy to improve sales to retain workforce• employ manager to free up owner to work on business• ensure correct costing and pricing in tenders• improve financial controls to ensure feasibility of planned expansion• develop injury management plan• resolve workplace bullying issue.
Through a one-year pilot, 80 small businesses from various sectors completed the Workforce Hub experience, testing innovative workforce business mentoring, and consulting and communication tools.At the end of the year, participants showed measurable improvements in their skills and knowledge to better plan and manage their human resources. Twenty-six new jobs were created and strategies were implemented to improve productivity and training opportunities for existing staff and contractors. The pilot suggested that the Workforce Hub process was relevant to all industry sectors and businesses of all sizes.An ongoing challenge for this type of initiative is funding because government support is required to keep participant fees affordable for some businesses. The Workforce Hub initiative was funded by the Australian Government as a model that could be replicated in other industry sectors and regions across Australia.
A number of ISCs (including Manufacturing Skills Australia and Service Skills Australia) have recognised the need for workforce development advisory services for employers in their respective sectors. AWPA believes there is merit in AgriFood Skills Australia establishing a similar service.
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Skills advice boosts businessesService Skills Australia has recently launched a new Skills Advisory Network, a national network of 100 industry skills advisers who target skills development within businesses. Skills advisers are drawn from a partnership of industry associations.177 This network partnership, a coalition of industry, ensures both currency and depth of industry knowledge is provided to the market. The Skills Advisory Network targets tourism and hospitality businesses. The advisers use specialised workforce diagnostic tools to tailor business solutions, strategies and actions depending on the particular needs of each business.Manufacturing Skills Australia has also implemented a Manufacturing Workforce Development Service to provide advice to employers about workforce issues.178 They assess businesses’ workforce needs, assist in developing a workforce development plan, guide implementation of the plan, assist businesses to apply for NWDF support and help find an accredited RTO.
Recommendation 8That AgriFood Skills Australia develops an industry-driven workforce development advisory service for the agrifood industry to build workforce planning and development capabilities among employers.
Ensuring industry-relevant, quality education and trainingFor employers to invest in training they need to be confident that it is relevant to their needs and that it is of high quality. Training relevance and flexible delivery are rated by employers as having more influence on decision making than who provides the training or whether it is accredited. Partnerships between enterprises and providers are a useful method of encouraging employer investment in training and helping employers to articulate their current and future needs. While a number of successful initiatives are already in place, there is the need for a more systemic approach. Having said that, it is acknowledged that in many regions, thin markets are an inhibiting factor. Across the board, provider capacity and capability is an issue that has been raised by stakeholders as requiring further investigation.Employers are seeking work-ready graduates. Students, also, are seeking education and training that is combined with practical experience. While this situation is not unique to the food sector, it does provide opportunities for greater use of work-integrated learning programs (such as apprenticeships, traineeships, internships and cadetships) and more direct involvement of businesses in discussions with the tertiary and higher education sectors to ensure that the skills developed through education and training better match those required by industry. Creating better pathways between VET and higher education is another area that requires further effort. 177 Service Skills Australia, 2013, ‘Australia’s tourism and hospitality industry has received nearly $12 million for the
implementation of an innovative workforce development strategy’, media release, 1 February 2013, available at serviceskills.com.au/sites/default/files/SSA%20MEDIA%20RELEASE%20WF%2020130201.pdf, accessed 28 August 2013.
178 Manufacturing Skills Australia, Manufacturing workforce development services free assistance package brochure, available at mskills.com.au/DownloadManager/downloads/FA_Manufacturing_Workforce_Development_Services_WEB.pdf, accessed 28 August 2013.
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Industry involvement in course design and validation of outcomesA greater involvement of industry in determining the competencies required of graduates was identified as an issue for the food and beverage workforce in the 2012 Senate inquiry into higher education and skills training to support agriculture and agribusiness in Australia.179 The inquiry recommended that the Australian Government commission a study to determine the most appropriate higher education framework to support high-level, practically focused agribusiness education. A 2012 Senate inquiry into Australia’s food processing sector180 recommended that ‘tertiary and higher education providers should engage more directly with food processing businesses about curricula and outcomes to ensure that the skills developed through further education better match those required by industry’. AWPA supports these calls for more industry engagement in course delivery and design. The agency has been told that this type of engagement currently occurs on an ad-hoc basis, and is hampered by the lack of a single industry body. A quality, industry-focused system must also encompass the monitoring of outcomes to ensure that education and training is meeting both student and industry needs.
Recommendation 9That industry has greater involvement in course design and the validation of educational outcomes to ensure the skills developed through tertiary education (VET and higher education) are matched to industry needs. This could be trialled through a pilot focusing on an emerging or innovative sector of the industry.
This could build on the work currently occurring in the VET sector through the National Partnership Agreement on Skills Reform, which is piloting models of independent validation of provider assessment across jurisdictions.
Work-integrated learningThere is increasing impetus for more VET and degree programs to include a work placement component to ensure that graduates receive valuable on-the-job experience and develop realistic expectations of work. The industry benefits through a supply of graduates who are better prepared for the workplace, and individual employers can benefit by establishing access to networks of potential recruits and through opportunities for existing staff to gain supervisory and mentoring experience.Gaining experience of a real-world working environment enables students to develop an awareness of workplace cultures and expectations, gain practical skills, build networks and develop soft skills in communication, teamwork and leadership.181 AWPA suggests a focus on work-integrated learning across the supply chain, should underpin all approaches to education and training for the agrifood industry. 179 Commonwealth Government, 2012, Australian Senate, Education, Employment and Workplace Relations References
Committee Inquiry into higher education and skills training needs to support future demand in agriculture and agribusiness in Australia, Australian Senate, Canberra; Victorian Government, 2012, Parliament of Victoria Education and Training Committee Inquiry into agriculture education and training, Victorian Senate, Melbourne.
180 Select Committee on Australia’s Food Processing Sector, 2012, Senate inquiry into Australia’s food processing sector, August, Australian Senate, Canberra, p. xvii.
181 Australian Workforce and Productivity Agency, 2013, Future focus, 2013 National Workforce Development Strategy, AWPA, Canberra, p. 107.
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Many training organisations and universities already offer work-related learning, and models vary widely across the higher education sector. Common examples include internships or integrated work placement—as part of a specific subject students do an unpaid work placement and complete relevant assessment tasks for course credit.
Work placements through Charles Sturt UniversityCharles Sturt University’s Agricultural Science degree program offers a professional placement pathway in the fourth year, allowing students to spend four months at an agricultural company as part of the qualification.182 Students apply for and sit interviews with businesses (with which the university has an ongoing relationship) to gain a place with the business for a 12-week practicum. During the placement a trained staff member is assigned to each student to act as a mentor and to assess the student’s development within the workplace.
However, work-integrated opportunities for students are limited, and employers, particularly small businesses, find that making opportunities available is costly and time-consuming. Group training arrangements can assist with sharing the costs between employers.Universities are also seeking ways to integrate work opportunities across the whole of curriculum and incorporating sequential teaching and assessment approaches from first to final year.183 Improved collaboration between universities and employers is seen as the way forward to increase and improve work-integrated learning opportunities. Closer relationships between the two would also help keep curricula up to date and work-relevant. However, it is essential for work-integrated learning to be properly embedded in curriculum, not just ‘added on’. Programs also need to be adequately resourced so that students can be properly prepared, supervised, mentored and assessed. Not all employers are prepared to take on the time and cost involved.184
182 Charles Sturt University, Bachelor of Agricultural Science, csu.edu.au/courses/undergraduate/agricultural_science/course-overview, accessed 28 August 2013
183 Patrick C-J, Peach D, Pocknee C, Webb F, Fletcher M and Pretto G, 2009, final report to the Australian Learning and Teaching Council: Work integrated learning: A national scoping study, Queensland University of Technology, Brisbane, p. 13.
184 Australian Workforce and Productivity Agency, 2013, Future focus, 2013 National Workforce Development Strategy, AWPA, Canberra, p. 109.
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Enhancing work-integrated learning outcomesThe Australian Government Office for Learning and Teaching is funding a project to enhance work-integrated learning outcomes. This project is led by Griffith University in partnership with four other universities across Queensland, New South Wales and Victoria. The objectives are to identify the key challenges faced by work-integrated learning leaders in both universities and enterprises, and to establish a framework and criteria to assess effective work-integrated learning leadership practices and the policies that support practice.185 This work will provide valuable insights into work-integrated learning models and practices.The Australian Chamber of Commerce and Industry is working in conjunction with the Innovative Research Universities to assist small, medium and large businesses to participate in work-integrated learning programs.Universities Australia has also commenced a project to explore models of work-integrated learning in the higher education sector.
Another way of bridging the education–work gap is via professional cadetships, where an employer agrees to contribute to, or subsidise the cost of, an employee’s education. AWPA believes there is benefit in collaboration between government, providers and industry to expand opportunities for work-integrated learning and to support further development of professional cadetships in identified higher education occupations and higher level VET qualifications. AWPA has been advised that there is a need for cadetships in new and emerging paraprofessional areas in the agrifood industry, at the Certificate IV and diploma level. This could incorporate employer group training arrangements and joint VET/higher education programs which bring together knowledge and practical application for emerging job roles.
Recommendation 10That AgriFood Skills Australia works in partnership with education and training providers and industry to develop agrifood technician/paraprofessional cadetships in new and emerging roles to increase the number of work-integrated learning opportunities available to students and to address emerging skills needs.
Apprenticeships and traineeships are an established model of work-integrated learning in the agrifood sector, particularly in sectors such as meat, seafood and food processing.However, according to industry stakeholders, traineeships and apprenticeships in the industry, particularly in rural, regional and remote areas, routinely face a raft of challenges for both employers and participating trainees and apprentices. These include limited or prescriptive provider choice, geographic isolation, limited peer and service provider support and, in many instances, inadequate or highly competitive labour markets.
185 Office for Learning and Teaching, Leading WIL: Distributed leadership approach to enhance work integrated learning outcomes, available at olt.gov.au/project-leading-wil-distributed-leadership-approach-enhance-work-integrated-learning-outcomes-2011, accessed 28 August 2013.
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Collaborative Learning ManagementTAFE NSW’s Western Sydney Institute has developed its Collaborative Learning Management approach in response to employers’ dissatisfaction with the ‘block release’ training format. Under the new format, trainers visit the worksite eight times a year to deliver a training plan that has been developed by the trainer, the employer and the employee. Trainers also act as mentors, supporting and encouraging trainees in their learning. This high level of collaboration between parties has seen a dramatic increase in apprentice numbers and increased retention and promotion of apprentices following completion of their training.
Rural Skills Australia has an established network of nine Agricultural and Horticultural Australian Apprenticeships Advisers (funded by the Australian Government) that provide Australia-wide assistance to potential rural and rural-related apprentices and trainees, with a particular focus on school students across Years 9 to 12.The current adviser program ends in December 2013. According to the NFF, it is important that the momentum and interest generated across many rural and regional areas—through structured information sessions, involvement in career and employment expos, Ag Taster days (equivalent to try-to-trade activities), and successfully piloted Ag Inspirations programs and Discover Ag camps—are not lost as a result of the program ending. The NFF has sought an extension of the program from the Australian Government.Stakeholders within the industry also believe that the removal of Australian Government employer incentives for Certificate II level traineeships has had a detrimental impact on its skilling agenda. In its 2013 Environmental Scan, AgriFood Skills Australia comments that the removal of standard commencement incentives for Certificate II traineeships remains a major area of concern for those sectors where it serves as the legitimate entry-level qualification to the workforce. The industry also has concerns about the recent removal of Certificate III completion payments for existing workers.
Training packagesWithin the VET sector, training packages underpin the development of units of competency, skill sets and qualifications that are endorsed by industry. AgriFood Skills Australia is responsible for maintaining and continuously improving eight nationally endorsed training packages. Close industry involvement with training package development and updating is crucial in ensuring that training products are aligned with what employers need in the workplace.During 2012, AgriFood Skills Australia implemented a revised Training Package Continuous Improvement Process that enables better engagement with key stakeholders through an open feedback loop and a more systematic mechanism for responding to requests for changes to training packages. Despite this, AWPA has been advised that it is difficult to get employers involved in the process. This will require ongoing effort.
Increasing the diversity of the food workforceIncreasing the diversity of the food and beverage workforce is a key strategy for improving the supply of workers in the face of imminent retirements of older workers, and building the resilience of the workforce. It also ensures that there are different approaches to problem solving and decision making within organisations, which means an increased capacity for productivity and innovation. Workforce participation benefits for individuals include increased wellbeing, which consist of financial security, self-esteem and social engagement. This is particularly important in regional areas.
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In its submission to AWPA the Chamber of Commerce and Industry of Western Australia suggests that ‘Providing both employers and people from a diverse background with advice and support to increase employment participation is necessary to ensure a seamless transition into the workforce’. AWPA supports the work of existing programs such as the Disability Employment Service, State Workforce Development Centres and Job Service Providers in this area.
Young peopleThe ageing workforce is a significant issue facing the industry, particularly in the agriculture sector. A range of factors, including a declining number of small farms and fewer young people taking over family farms, has contributed to the workforce’s high median age. Between 1981 and 2011, the proportion of farmers under 35 years declined from 28 per cent to 13 per cent. Therefore, attracting and developing younger workers is essential to maintaining stable workforce numbers and improving productivity. The Chamber of Commerce and Industry of Western Australia describes the problem of ageing workforce in its submission to AWPA:
The ageing of the agriculture workforce poses significant challenges for the sector, particularly for WA where the trend is even more pronounced. As the age profile increases, the rate at which people exit the industry is expected to increase. At the same time, a lack of new entrants to the sector mean that labour shortages are likely to be an even bigger issue for the sector in the years ahead.
In its submission to AWPA, the Food, Fibre and Timber Industries Training Council said that the issue was not only ageing workers leaving the industry, but also young people leaving regional areas. The council stated that attracting young people into the industry was a priority and that effective VET in Schools (VETiS) should be treated as a key mechanism for achieving this.The 2013 National Workforce Development Strategy presents AWPA’s view on VETiS programs:
VET in Schools programs can play an important role in helping young people transition from learning to earning. However, outcomes can be variable and there is industry concern about consistency in implementation within and across jurisdictions and about involvement in structured on-the-job training as opposed to simulated environments in school settings. More broadly, we support a review of policy for VET in Schools delivery across jurisdictions.
VETiS could provide a successful pathway for students to begin a career in the agrifood industry, but that the program needs to be strengthened and stakeholder concerns addressed for the benefits to be realised. As discussed above, there are a number of strategies in place to attract young people into the industry targeting school students and recent leavers. PIEF is providing national leadership in promoting primary industries in schools to attract young people to food and agriculture study and career options. PICSE includes school outreach and engagement programs such as industry placements in regional and metropolitan centres and universities. Several sectors also have their own school-level initiatives of varying scales. In addition, numerous scholarships are offered by various organisations to assist students to study food-related courses at a university level.
People experiencing labour market disadvantageMany Australians struggle to participate in education and training and in the workforce. The National VET Equity Advisory Council notes that:
People who typically experience disadvantage in VET may have low LLN skills; they may have a disability or be experiencing mental health issues; they may live in remote communities or communities with concentrations of people with low socio-economic backgrounds; they may have low incomes and access to few services; they may be offenders in juvenile justice centres or correctional facilities; they may be women in low paid jobs with family responsibilities; they may be Indigenous Australians or new arrivals and refugees.186
186 National VET Equity Advisory Council, 2011, Equity blueprint 2011–2016, NVEAC, Melbourne, p. 3.
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Removing the barriers that individuals face opens up an additional source of labour for the agrifood industry, particularly in regional areas where labour is scarce. It also has significant benefits for individuals as well as the broader community. Some of these barriers are easier to overcome than others, and many are not within AWPA’s remit, reinforcing the need for governments and industry to work together to address workforce issues for the industry. Several submissions to this study have highlighted that addressing language, literacy and numeracy (LLN) issues is an important way to improve the potential of the agrifood workforce and to increase the number of new entrants to the industry. In its submission, TAFE NSW explains the importance of these foundation skills as a part of technical training:
The integration of language, literacy and numeracy units in training package qualifications will assist in ensuring effective outcomes for learners, supporting completions and producing workers who have both the technical and employability skills required for the modern workplace.
The Future focus strategy notes that there is a strong link between adult LLN levels and employment: Unpublished Adult Literacy and Lifeskills Survey (ALLS) data shows that among Australians aged 25 to 59 years with numeracy skills at level I and level II, 38 per cent and 23 per cent were not employed, respectively. This rate drops to just under 9 per cent for those with LLN skills at level III.
The Food, Fibre and Timber Industries Training Council has indicated that there is a high number of workers in the industry with lower LLN and that this is a significant barrier to training. The council suggests that taxation incentives could help businesses to tackle the issue:
The receipt of 150 per cent human capital development taxation rebate on LLN training and support expenditure would be a simple and effective means of supporting increased investment. The wider social benefits of increased LLN far outweigh the relatively small taxation costs.
The Workplace English Language and Literacy (WELL) Program is the Australian Government’s main program for providing LLN training in the workplace. The program supports employees whose level of LLN skills impacts on their capacity to perform workplace tasks and/or work-related training. WELL Brokers are a key distribution channel for WELL and one is contracted to both AgriFood Skills Australia and Manufacturing Skills Australia. Further efforts could be made to ensure that employers are aware of the benefits of investing in LLN capabilities and the availability of the WELL Program.AgriFood Skills Australia has noted that the geographically dispersed nature of the food and beverage industry workforce means enterprises often have limited access to appropriate LLN training and expertise. Further, it notes that industry has a training subculture of building skill sets for immediate tasks at hand, and that the high proportion of the seasonal or intermittent workers means it is not always practicable for some businesses, particularly SMEs, to release workers to attend LLN training.In recognition of the need to increase support for foundation skills training in the workforce, AgriFood Skills Australia is developing and trialling resources and foundation skills assessments within core units of Certificate I to III qualifications from the new AHC10 Agriculture, Horticulture and Land Management Training Package.187
187 Industry Skills Council, No more excuses: An industry response to the language, literacy and numeracy challenge, available at isc.org.au/pdf/NoMoreExcuses_FINAL%20single%20page.pdf.
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Recommendation 11That the Australian Government supports and promotes the work of AgriFood Skills Australia to integrate language, literacy and numeracy skills into agrifood training products to increase the industry’s recognition of the importance of foundation skills in the workforce (among new entrants and existing workers).
In South Australia, the Adult Community Education (ACE) program was reviewed in 2010 and has been refocused so that it works more collaboratively with the VET sector to improve learner pathways. The reforms include investment in extensive professional development and support for the sector. However, the underlying policy of the reformed program acknowledges the importance of retaining the unique qualities of the ACE sector that are successful in engaging hard-to-reach learners.
Recommendation 12That state and territory governments focus Adult Community Education (and similar initiatives) on programs that support vocational pathways to encourage greater workforce participation among groups currently under-represented in the industry, including new migrants and displaced workers requiring bridging courses.
WomenThe NFF has noted that female participation is linked to improved innovation, productivity and economic development. The participation rate of females in agriculture, in particular in decision-making and management roles has historically been comparatively lower than males. In 2011, 72 per cent of the farming workforce was male and 28 per cent was female. Females with a bachelor of agriculture degree are paid an average of $1,500 less than their male counterparts. Only 64.4 per cent of female graduates are in full-time employment compared to 73.7 per cent for males. In the food processing sector, female participation is somewhat higher, although this varies between sectors and there is potential to attract more women into the sector.There are several targeted initiatives assisting the situation, such as scholarships for women to study food production-related qualifications. There are also many organisations that represent women in food production fields (for example, Women’s Industry Network Seafood Community and Foundation for Australian Agricultural Women), offering professional support and networking opportunities. AWPA supports the further development of such initiatives.
Indigenous AustraliansIndigenous Australians have a considerably lower labour participation rate (55 per cent), compared to the national average of 65.4 per cent. Agriculture and food processing jobs represent an opportunity to increase Indigenous participation, in particular in regional, rural and remote locations. A number of successful initiatives are in place, for example the Ord-East Kimberley Development Plan is delivering benefits to an area with a high level of welfare dependency by providing employment. The Ord Final Agreement includes the Aboriginal Development Package, which enables the widest possible range of
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employment, contracting and business opportunities to be considered. This will have a positive impact on Indigenous participation in the area. Targeted regional programs such as the Moree Aboriginal Employment Strategy assist Indigenous people secure jobs. It has already reported successes including securing 500 jobs for Indigenous people in 2005–06. Regions such as Moree represent important opportunities for delivering targeted initiatives for improving Indigenous participation in food and agriculture. The NFF places a strong emphasis on increasing opportunities for Aboriginal people to gain careers working on the land and in the food supply chain. The federation is proposing to enter into a memorandum of understanding with Mission Australia to address this complex area of social policy and education. There are also broader programs aimed at improving the gap between Indigenous and non-Indigenous participation rates, such as the Indigenous Employment Program (IEP), which aims to increase opportunities for Aboriginal and Torres Strait Islander people through employment, business support and economic development activities. Some key elements of the IEP include Indigenous Cadetship Support, Indigenous Wage Subsidy and the Indigenous Capital Assistance Scheme. Other dimensions to Indigenous participation include improving workplace inclusiveness and culture, and LLN training. The Australian Indigenous Mentoring (AIM) organisation can assist industries in this regard.
Recommendation 13That the Australian Government expands programs designed to increase workforce participation among Indigenous Australians linked to available jobs in the agrifood industry, to help reduce the gap between Indigenous and non-Indigenous participation in the industry. These programs should provide tailored support services to those who require them, based on existing successful models including those in the resources sector.
Initiatives in the cotton, beef and dairy sectors provide a model where entrant needs for pastoral care and workplace support are linked with work-ready and Certificate II or III level training, community networks, case management, and employer training and support.
Other potential sources of labourAn enduring challenge for the agrifood industry is sourcing scarce labour in regional and remote areas where many businesses are located. One strategy is to target non-traditional sources of labour by removing barriers that prevent them from participating in the workforce.
To meet demand for labour, the industry will need to be innovative and flexible in developing strategies to engage people from different demographic groups.
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Flexibility promotes diversityFletcher International Dubbo has changed its work shifts to better accommodate the needs of different groups of people in order to improve its pool of potential staff.188 The ‘mum’s shift’ is from 9am to 3pm and allows parents to be available for their children outside of school hours. Evening shifts also accommodate high school and university students who have classes during the day. This flexibility attracts potential workers who may not be able to work within standard morning or afternoon shifts and increases the diversity of Fletcher’s workforce.
Some businesses have found new sources of labour in regions faced with high competition for workers from mining and mining-related businesses. Hazeldene Chickens in Victoria has drawn its workforce from countries with a non-English speaking background such as Vietnam, Thailand, China and Burma, which has alleviated their labour shortage challenges. Migrants and refugees play an important role in many industries, although only 15.3 per cent of workers in the Agriculture, Fishing and Forestry industry were born outside of Australia, compared to 28.7 per cent on average across all industries.189 The regional location of agrifood businesses could explain why the percentage of migrants and refugees is lower; however, there are opportunities for regional businesses to tap into this underused group. As AWPA’s 2013 National Workforce Development Strategy indicates, to achieve greater workforce participation by migrants and refugees, strategies are required to specifically address the needs of people from culturally and linguistically diverse backgrounds. These people will often require additional English-language support (beyond initial settlement English training) to assist them to actively engage in employment and training programs.190 Initial settlement support is provided through the Adult Migrant English Program. It provides settlement-focused English-language training to eligible humanitarian entrants and migrants. The training is delivered by RTOs in 250 locations around Australia.191
Continued support for these types of government-funded initiatives will play an important part in ensuring the industry has the workers it needs into the future.
ConclusionAs indicated throughout this report, the industry’s current skills profile suggests it is facing a difficult transition phase. Building the industry’s resilience through encouraging and supporting a culture of structured training and lifelong learning will require long-term leadership from industry partners.The industry’s future depends in no small part on successfully selling to new customers in rapidly growing Asian markets. However, the industry’s potential in the Asian century is far from assured.Productivity growth will need to be sustained if Australia is to take full advantage of the export opportunities opened by the growing global demand for food. Increasing the skills and adaptability of the food industry workforce will require major changes in the attitudes and practices of the industry. 188 National Centre for Vocational Education Research, 2010, Work, skills and training in the Australian red meat processing
sector, NCVER, pp. 25–26.189 Australian Bureau of Statistics, 2011, Census of Population and Housing, Canberra.
190 AMES, 2012, Submission to the AWPA Future focus discussion paper.191 Department of Immigration and Citizenship, 2012, Portfolio Budget Statements 2012–13: Immigration and Citizenship
portfolio, DIMC, Canberra, p. 75.
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The central finding of this study is that responsibility for leading the workforce development agenda for the industry, much of which is outlined in this report, should be invested in a coordinating body that can provide coherent advice to government on policy priorities in education, training, skills, employment and workforce participation for the food industry.
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Appendix A: Industry production and growth
Developments in production and trade by commodity192
LivestockBeef and veal
Beef and veal production has remained relatively stable over the 10 years to 2011–12, averaging 2.1 million tonnes a year. During this decade, around 64 per cent of beef and veal production was exported.
Figure 12 Beef and veal production
Source: ABARES, 2012, Agricultural commodity statistics 2012, Australian Bureau of Agricultural and Resource Economics and Sciences, December, Canberra.
While Australia accounts for only a small proportion of global beef production at around 4 per cent, it is one of the world’s largest exporters. Japan, the United States and the Republic of Korea are the largest export markets for Australian beef.193
While Australia’s traditional markets of Japan, the United States and the Republic of Korea are important, the share of beef and veal exports going to other markets has increased. In 1990–91, 88 per cent of Australia’s beef and veal exports went to the traditional markets, but by 2011-12 this 192 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Prospects for agriculture and its workforce:
ABARES contribution to the AWPA food workforce study, unpublished. 193 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012,
DAFF, Canberra.
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had declined to 69 per cent. Recently, for example, China emerged as a significant export market because of a reduction in Chinese beef production. Monthly exports to China have averaged around 6,000 tonnes since September 2012, compared with average monthly shipments of around 500 tonnes over the five years to August 2012.194 Other markets that have grown in importance include the Middle East and South-East Asia.Australia also exports live cattle for feeder and slaughter purposes, particularly to Indonesia, Israel and Turkey. In recent years, live cattle exports have declined, reflecting the reduction of import quotas issued by Indonesia.Sheep meat
Over the past 20 years, the Australian sheep industry has undergone significant restructuring. In the decade following the collapse of the wool reserve price scheme, the number of sheep in Australia fell by 27 per cent to 119 million head in 2000. The sheep flock contracted further to around 75 million head in 2012. While sheep numbers have fallen, there has been an increase in sheep meat production within sheep enterprises in response to favourable returns to meat production, compared with wool.195 Sheep meat production peaked at 956,000 tonnes in 1971–72 and declined over the following decades to 539,000 tonnes in 2011–12. Lamb production accounted for around 65 per cent of sheep meat production over the past decade.In 2010, Australia was the second-largest producer of sheep meat, behind China. Australia was also the world’s largest exporter of mutton and the second-largest exporter of lamb, after New Zealand.196
Over the past two decades, lamb production expanded by 50 per cent and exports have become increasingly important to producers. The share of production exported grew from 15 per cent in 1991–92 to almost 50 per cent in 2011–12. Australia’s major export markets for lamb (by volume) are the Middle East, the United States and China.197 However, in value terms the largest export markets are the Middle East, the United States and Japan.Australia exported 2.6 million live sheep in 2011–12, with major markets including Kuwait, Qatar, Turkey, and Jordan.198 Live sheep exports were much higher in the 1980s when they reached a peak of 7.1 million head in 1986.Pig meat
The Australian pig meat industry has faced increased exposure to the global market following changes to quarantine regulations to allow imports of processed pig meat in the 1990s. Under Australia’s quarantine arrangements all imported pig meat must be processed before importation or on arrival. As a result, imported pig meat does not compete directly with the Australian-grown product in the fresh meat market.Movements in international prices and the exchange rate have increasingly influenced Australian pig meat prices and the volume of trade.199 In the 10 years to 2011–12, the volume of pig meat exports from Australia almost halved while the volume of imports trebled. The share of total domestic pig meat consumption (fresh plus processed) comprised of imports grew from 22 per cent in 2001–02 to 48 per cent in 2011–12, with an increasing share of processed pig meat being imported. As the consumption of processed pig meat was increasingly comprised of imports, the volume of Australian
194 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Agricultural commodities: March quarter 2013, ABARES, Canberra.
195 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Agricultural commodities: March quarter 2013, ABARES, Canberra.
196 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
197 Australian Bureau of Agricultural and Resource Economics and Sciences, 2012, Agricultural commodities: September quarter 2012, ABARES, Canberra.
198 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
199 Department of Agriculture, Fisheries and Forestry, 2007, Australia’s agriculture, fisheries and forestry at a glance 2007, DAFF, Canberra.
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pig meat production fell from a peak of 420,000 tonnes in 2002–03 to 351,000 tonnes in 2011–12. Poultry meat
Chicken meat production accounts for around 95 per cent of total poultry meat production, with the other 5 per cent comprising duck and turkey meat. Over the past decade the Australian chicken meat industry has experienced strong growth, with production and consumption growing at an average annual rate of around 5 per cent.200 Since 2004, apparent consumption per person of chicken meat has exceeded that of other meats.
Figure 13 Apparent meat consumption per person
Source: ABARES, 2012, Agricultural commodity statistics 2012, Australian Bureau of Agricultural and Resource Economics and Sciences, December, Canberra.
The chicken meat industry is more vertically integrated than other livestock sectors in Australia and is also highly concentrated. Two major processors supply around three-quarters of the domestic chicken meat market.201 Only 5 per cent of Australian chicken meat production is exported. Exports of chicken meat grew at an annual average rate of 6.5 per cent over the 10 years to 2012. Traditionally, the Asia-Pacific region and South Africa have been the largest export markets for Australian chicken meat.Dairy
Among agricultural commodities, milk production had the third-highest gross value of production in 2011–12, behind cattle slaughterings and wheat production. Milk production operates in a deregulated environment in which farmgate prices are significantly influenced by international markets.202
200 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Agricultural commodities: March quarter 2013, ABARES, Canberra.
201 Australian Bureau of Agricultural and Resource Economics and Sciences, 2013, Agricultural commodities: March quarter 2013, ABARES, Canberra.
202 Department of Agriculture, Fisheries and Forestry, 2007, Australia’s agriculture, fisheries and forestry at a glance 2007,
127
Milk production declined from 11.2 billion litres in 2001–02 to 9.5 billion litres in 2011–12, largely because of unfavourable seasonal conditions during much of this period and reduced supplies of irrigation water.Around 45 per cent of milk produced in Australia is exported as products such as milk powders, butter and cheese. Australia is the world’s fourth-largest exporter of dairy products, behind New Zealand, the European Union and the United States.203 Japan is Australia’s largest export market for dairy products by value, followed by Singapore and China.
Figure 14 Australian dairy exports
Source: ABARES, 2012, Agricultural commodities: December quarter 2012, Australian Bureau of Agricultural and Resource Economics and Sciences, Canberra.
Reflecting lower production, the volume of dairy product exports declined by 28 per cent over the decade to 2011–12. During this time the volume of cheese exports declined by 23 per cent; milk powder exports declined by 22 per cent; and butter exports fell by 56 per cent.
Fish
In 2011–12 the gross value of Australian fisheries production was $2.3 billion. This included production from aquaculture and the harvest of wild stocks.204 This production comprised of 38,000 tonnes of salmonids valued at $429 million; 115,700 tonnes of other fin fish production valued at $424 million; and 10,000 tonnes of rock lobster production valued at $416 million.In 2010–11 the gross value of aquaculture production was around $948 million, accounting for around 42 per cent of the gross value of fisheries production. Together, salmonids, tuna, prawns, edible oysters
DAFF, Canberra.203 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012,
DAFF, Canberra.204 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012,
DAFF, Canberra.
128
and pearl oysters accounted for 87 per cent of the gross value of aquaculture production.205
Australian exports of edible fisheries products totalled $1 billion in 2011–12. The most valuable export product was rock lobster, which together with tuna and abalone, accounted for 58 per cent of the total value of Australian fisheries exports. In 2010–11, around 80 per cent of the value of Australian exports of edible fisheries products went to Hong Kong, Japan and China.206
CropsThere are two broad classes of crops grown in Australia: broadacre crops (extensive land use) and crops that make more intensive use of land than broadacre crops (intensive land use). Broadacre crops consist mainly of the cereal grains, canola and grain sorghum and are highly dependent on seasonal conditions. Intensive land use crops include sugar, horticulture crops, wine grapes and rice, and are often irrigated.Wheat
Wheat is the main broadacre crop grown in Australia. The gross value of production of wheat was $7.5 billion in 2011–12, the highest among all agricultural commodities. In 2011–12, favourable seasonal conditions prevailed, the average yield was around 2.1 tonnes per hectare and production reached a record 29.9 million tonnes. However, during a drought, the average yield can drop to less than 1 tonne per hectare and production can drop to 10 million tonnes or less, depending on the area planted to wheat. Over the 10 years to 2011–12, an average 12.9 million hectares is planted to wheat annually.
Figure 15 Australian wheat production
Source: ABARES, 2012, Agricultural commodities: December quarter 2012, Australian Bureau of Agricultural and Resource Economics and Sciences, Canberra. Note: f = ABARES forecast.
205 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
206 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
129
Most wheat produced in Australia is exported, with Western Australia the largest exporting state.207 Australia’s key export markets for wheat are Indonesia, the Republic of Korea, Japan and China.Coarse grains
Barley is the main coarse grain grown in Australia and is used principally for malting and livestock feed. Between 35 and 40 per cent of barley typically achieves malting grade. Barley selected for malting usually attracts a higher price than feed barley.Barley production over the past decade averaged 7.5 million tonnes, peaking at 10.3 million tonnes in 2003–04. Production fell to 4.3 million tonnes in 2006–07 because of unfavourable seasonal conditions before increasing to around 8.2 million tonnes in 2011–12. The average area planted to barley in the past decade was around 4.4 million hectares with 3.7 million hectares planted in 2011–12.On average, around 4.7 million tonnes of barley are exported annually, with around 63 per cent of barley production exported.208 The largest export markets in terms of volume in 2011–12 were Saudi Arabia, China and Japan.Grain sorghum production averaged around 2.1 million tonnes over the 10 years to 2011–12. It reached a peak of 3.8 million tonnes in 2007–08 before falling to 2.3 million tonnes in 2011–12. The area planted to sorghum also peaked in 2007–08 at 942,000 hectares, but averaged around 700,000 tonnes for the 10 years to 2011–12.Around 28 per cent of grain sorghum grown in Australia is exported.209 In 2011–12, 1.1 million tonnes was exported, which equated to around 47 per cent of domestic production. Japan is the largest export market for grain sorghum. Grain sorghum is used mainly for livestock feed.210
207 Department of Agriculture, Fisheries and Forestry, 2012, Wheat, DAFF, Canberra.
208 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
209 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
210 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
130
Figure 16 Australian coarse grain production
Source: ABARES, 2012, Agricultural commodities: December quarter 2012, Australian Bureau of Agricultural and Resource Economics and Sciences, Canberra. Note: f = ABARES forecast.
Oilseeds
Summer oilseeds (cottonseed, sunflower, soybean and peanut) are harvested between March and April, while winter oilseeds (canola, linseed and safflower) are harvested between October and December. Oilseeds are crushed mainly for vegetable oil, with meal a byproduct used for human and animal feed.211
The major oilseed crop grown in Australia is the broadacre crop canola, which accounted for 36 per cent of total oilseed production in 2011–12. In the five years to 2011–12, the area planted to canola averaged 1.7 million hectares, with 1.8 million hectares planted in 2011–12. Production over the same period averaged 2.2 million tonnes and reached a record 3.4 million tonnes in 2011–12.In 2011–12, 2.3 million tonnes of canola, 117,000 tonnes of canola oil and 22,000 tonnes of canola meal were exported. The main export market for canola was the European Union, the main export market for canola oil was Malaysia, and the main export market for canola meal was New Zealand.Sugar
In 2011–12, 27.7 million tonnes of sugar cane was crushed and 3.8 million tonnes of raw sugar was produced. Over the past decade, production of raw sugar has averaged around 4.7 million tonnes, while the amount of cane crushed has been around 33.6 million tonnes.The harvested areas of sugar cane in Australia have declined since 2002–03 because of drought, cyclones, cane smut (a fungal disease), urban encroachment and higher returns from alternative land uses such as forestry.212 In 2011–12, 370,000 hectares of sugar cane was harvested which was around 211 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012,
DAFF, Canberra.212 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012,
DAFF, Canberra.
131
24 per cent less than in 2002–03.Australia is the second-largest raw sugar exporter in the world. More than 80 per cent of all sugar produced in Australia is exported as bulk raw sugar. Key export markets include the Republic of Korea, Indonesia, Japan and Malaysia.213
Horticulture
Horticulture production is characterised by small-scale family farms of which many grow a range of crops. Much of the horticultural produce in the southern states is directed to processing, whereas in the northern states it is typically supplied as fresh produce to the southern states during the cooler months.214
Seasonality is important in Australia’s trade in fruit, nuts and vegetables, particularly for fresh produce. Consequently, Australia is both an importer and exporter of some types of fruit and vegetables.215
Figure 17 Seasonal pattern of net trade in fresh and processed horticulture products
Source: ABARES, 2012, Agricultural commodities: March quarter 2012, Australian Bureau of Agricultural and Resource Economics and Sciences, Canberra. Note: Net trade is defined as exports less imports; an average of 2009 to 2011 is shown.
The gross value of horticultural production in 2012–13 was $9 billion, of which vegetables accounted for $3.7 billion and fruit and tree nuts $3.4 billion. In 2011–12, the total value of Australian exports of fresh and processed fruit, nuts and vegetables was $1.24 billion, compared with a total value of imports of these products of $2.1 billion.216
Wine
Wine grape production in Australia has increased rapidly in the past two decades because of strong
213 Department of Agriculture, Fisheries and Forestry, 2012, Sugar, DAFF, Canberra.214 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012,
DAFF, Canberra.215 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012,
DAFF, Canberra.216 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012,
DAFF, Canberra.
132
demand for Australian wine in export markets. High wine grape prices drove a rapid expansion of Australia’s vineyard area during this period.217
The wine industry consists of around 6,700 grape growers supplying more than 2,000 wineries. Since 1999, red wine grape production has exceeded white wine grape production.218 In 2010–11, 1.56 million tonnes of wine grapes were grown, of which 55 per cent were red.Australia has well-established markets in Europe and North America, with 63 per cent of total exports shipped to these regions in 2011–12. Australia is also developing a foothold in key emerging markets including China, India and the Russian Federation.219
Rice
Rice production is very variable. In 2000–01 it peaked at 1.6 million tonnes, but fell to only 18,000 tonnes in 2007–08 because irrigation water availability was reduced by drought.220 In 2011–12 it recovered to 941,000 tonnes.
Regional patterns of productionBeef and vealBeef production is the most widespread agricultural industry in Australia. In northern Australia, most cattle grazing is on large properties, with northern beef producers operating less diversified farms than in southern Australia. The remote locations and larger size of properties in northern Australia make management practices and supplementary feeding more costly than in southern Australia.221 Cattle are regularly transported within and between regions in response to seasonal conditions, for finishing, live export and slaughter.Northern Australia has accounted for an increasing proportion of the Australian cattle herd over the past 10 years, and it now accounts for around 60 per cent of the national herd. The main breeds of cattle in northern Australia are Bos indicus while in southern Australia Bos taurus breeds are more prominent. The differences in breeds, the type of cattle turned off and the proximity to live export markets have resulted in cattle from the two regions being sent to different markets.222
Sheep meatMost lamb producers operate diversified farm businesses including cropping, beef cattle and wool production.223 Most sheep enterprises are located in the wheat–sheep zone, which correlates with the cropping zone (see Figure 18). In the three years to 2010–11, around 80 per cent of farms that ran sheep received revenue from the sale of slaughter lambs. The slaughter lamb industry is concentrated in New South Wales, Victoria and the southern part of Western Australia.224
217 Gunning-Trant C, 2010, ‘Australian wine grape production projections to 2011–12’, ABARES Research Report 10.4.
218 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
219 Department of Agriculture, Fisheries and Forestry, 2012, Wine policy, DAFF, Canberra,220 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012,
DAFF, Canberra.221 Thompson T and Martin P, 2012, Australian beef: Financial performance of beef cattle producing farms, 2009–10 to 2011–12,
ABARES, Canberra.222 Thompson T and Martin P, 2012, Australian beef: Financial performance of beef cattle producing farms, 2009–10 to 2011–12,
ABARES, Canberra.223 Martin P, 2012, Australian lamb: Financial performance of slaughter lamb producing farms 2009–10 to 2011–12, Australian
Bureau of Agricultural and Resource Economics and Sciences, Canberra.224 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012,
DAFF, Canberra.
133
Pig meatPig raising in Australia is widespread within grain producing areas in all states, but the vast majority of the Australian pig herd is in the eastern states.225 In 2011–12, the Australian pig herd totalled 2.16 million head. Queensland had the largest pig herd at 554,000 head, followed closely by Victoria and New South Wales which had 523,000 head and 502,000 head respectively. The remaining 580,000 pigs were in South Australia, Western Australia and Tasmania.
PoultryNew South Wales accounted for 34 per cent of Australia’s chicken meat production in 2010–11, Victoria accounted for 24 per cent and Queensland 19 per cent. The remainder was produced in South Australia, Western Australia and Tasmania.226
Production and processing of chicken meat in Australia is located around capital cities and in regional clusters around Casino, Goulburn, Griffith, Newcastle and Tamworth in New South Wales, Geelong and Bendigo in Victoria, Mareeba in Queensland, Murray Bridge in South Australia and Devonport and Launceston in Tasmania.227
DairyThe dairy industry is established in most temperate areas of Australia, mainly in the south and east. Most dairy production is on rain-fed pasture. However, around 20 per cent of milk is produced in the irrigation areas of the Murray–Darling Basin in northern Victoria and southern New South Wales.228
In 2011–12, 65 per cent of Australian milk production was in Victoria, 11 per cent in New South Wales, 8 per cent in Tasmania, 6 per cent in South Australia, 5 per cent in Queensland and 4 per cent in Western Australia.
FisheriesAustralian fisheries are located within the Australian Exclusive Economic Zone (EEZ), which extends to 200 nautical miles off the coast of Australia and its external territories.229 Australia has the third-largest economic exclusive zone in the world.230
Within the EEZ, fisheries are managed by the national, state and territory governments. The Australian Fisheries Management Authority manages Commonwealth commercial fisheries on behalf of the Australian Government, which generally extend from 3 nautical miles off the coast of Australia to the border of the EEZ.South Australia had the highest volume of fisheries production in 2010–11 at 66,568 tonnes, followed by Tasmania at 47,276 tonnes and Queensland at 33,666 tonnes. Tasmania had the highest value of fisheries production at $609 million followed by Western Australia ($483 million) and South Australia ($441 million).231
225 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
226 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
227 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
228 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
229 Department of Agriculture, Fisheries and Forestry, 2011, Managing Australian fisheries, DAFF, Canberra.230 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012,
DAFF, Canberra.231 Skirtun M, Sahlqvist P, Curtotti R and Hobsbawn P, 2012, Australian fisheries statistics 2011, ABARES, Canberra.
134
CropsWheat
Wheat is grown in all the states of Australia, although Tasmanian production is minimal. Wheat production is primarily concentrated in the 300- to 600-millimetre rainfall belt in the south-east and south-west of Australia. It is often grown in combination with other grains and oilseeds and is also produced on mixed enterprise farms with livestock, particularly sheep.232
Figure 18 Australian wheat-growing regions
Source: ABARES, 2013, Australian crop report, Australian Bureau of Agricultural Resources Economics and Sciences, Canberra.
Coarse grains
Winter coarse grain crops, which include barley, triticale and oats, are predominantly grown in the same regions as wheat.233 Summer coarse grains crops, which are mostly comprised of grain sorghum, are grown in northern New South Wales and southern and central Queensland.Oilseeds
232 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
233 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
135
Canola, which accounted for 63 per cent of Australia’s oilseed production in 2011–12, is grown in the wheat–sheep zone of Western Australia, Victoria, New South Wales and South Australia. Cottonseed, the next largest oilseed crop, is produced as a byproduct of cotton lint production in northern New South Wales, and southern and central Queensland.234
Sugar
Sugar cane is grown along the east coast between Grafton in northern New South Wales and Mossman in far north Queensland. On average, 95 per cent of Australia’s sugar comes from Queensland with the remainder originating in northern New South Wales.235
Horticulture
The greatest concentration of horticultural production is in the Goulburn Valley of Victoria, the Murrumbidgee Irrigation Area of New South Wales, the Sunraysia district of Victoria, the Riverland region of South Australia, northern Tasmania, south-west Western Australia and along the coastline of northern New South Wales and Queensland.236
Wine
Every state in Australia produces wine grapes, with most wine-producing areas concentrated in the cooler south-east of the country. The largest producer is South Australia, with around 47 per cent of Australian production in 2010–11, followed by New South Wales (28 per cent) and Victoria (19 per cent).237
Rice
Rice is primarily produced in the Riverina region of southern New South Wales, with small amounts grown in northern New South Wales, northern Victoria, Queensland and the Ord River Irrigation Area in Western Australia.238
234 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
235 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
236 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
237 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
238 Department of Agriculture, Fisheries and Forestry, 2012, Australia’s agriculture, fisheries and forestry at a glance 2012, DAFF, Canberra.
136
Appendix B: Supply and demand data tables
Table 21 VET student enrolments by training package, 2011, by state and remoteness
Food Processing
Industry (FDF)
Australian Meat
Industry (MTM)
Agriculture, Horticulture
and Conservation
and Land Mgt (AHC)
Sugar Milling (SUG)
Seafood Industry
(SFI)
Animal Care and
Management (ACM)
% % % % % %
New South Wales 21 23 28 0 12 48
Victoria 42 29 29 0 3 20
Queensland 13 28 19 100 16 12
South Australia 13 9 5 0 11 7
Western Australia 6 7 10 0 28 9
Tasmania 3 3 4 0 11 1
Northern Territory 1 1 4 0 20 1
Australian Capital Territory 1 0 1 0 0 2
Major cities 43 35 26 0 14 50
Inner regional 33 36 30 0 14 31
Outer regional 17 22 29 68 43 14
Remote 2 3 5 32 11 1
Very remote 1 1 7 0 15 1
Outside Australia 1 0 1 0 0 1
Not known 4 2 2 0 2 2
Total enrolled 2011 11,099 10,800 54,541 93 1,987 9,399
Source: NCVER training packages: data available at ncver.edu.au/resources/vsi.html.
137
Table 22 Employment in the Agriculture and Fishing industry
ANZSIC code
Industry subdivision/Group Employed 2012
Total employment growth five
years to 2012
Annual average
employment growth five
years to 2012
(000) (000) (%)
A0 Agriculture, Forestry and Fishing, nfd 1.4 –0.4 –5.3
01 Agriculture 290.6 –15.6 –1.0
010 Agriculture, nfd 42.8 11.7 6.6
011 Nursery and Floriculture Production 11.8 –6.5 –8.4
012 Mushroom and Vegetable Growing 16.6 –5 –5.1
013 Fruit and Tree Nut Growing 30.7 –11.5 –6.2
014 Sheep, Beef Cattle and Grain Farming 128.3 –12.3 –1.8
015 Other Crop Growing 12.9 1.4 2.3
016 Dairy Cattle Farming 25.0 0.6 0.5
017 Poultry Farming 11.7 4.0 8.9
018 Deer Farming 0.0 0.0 0.0
019 Other Livestock Farming 10.9 1.9 3.9
02 Aquaculture 2.8 –1.4 –7.8
04 Fishing, Hunting and Trapping 6.8 –0.7 –1.9
040 Fishing, Hunting and Trapping, nfd 0.7 –2.0 –23.7
041 Fishing 5.8 1.3 5.1
042 Hunting and Trapping 0.3 0.0 0.2
05 Agriculture, Forestry and Fishing Support Services 23.5 –2.1 –1.7
052 Agriculture and Fishing Support Services 20.1 –2.6 –2.4
Source: Australian Bureau of Statistics, Labour force, Australia, detailed, quarterly, cat. no. 6291.0.55.003. Note: Historical employment data has been annualised and smoothed by way of four-quarter averaging.
138
Table 23 Employment in the Food and Beverage Manufacturing industry
ANZSIC code
Industry subdivision/Group
Employed 2012
Total employment growth five
years to 2012
Annual average
employment growth five
years to 2012
(000) (000) (%)
11 Food Product Manufacturing 199.4 2.8 0.3
110 Food Product Manufacturing, nfd 25.5 7.5 7.2
111 Meat and Meat Product Manufacturing 55.8 5.0 1.9
112 Seafood Processing 1.3 –1.0 –10.3
113 Dairy Product Manufacturing 19.1 0.2 0.2
114 Fruit and Vegetable Processing 7.3 –2.4 –5.6
115 Oil and Fat Manufacturing 1 –1.3 –15.9
116 Grain Mill and Cereal Product Manufacturing 5.3 –0.3 –1.1
117 Bakery Product Manufacturing 62.6 –0.4 –0.1
118 Sugar and Confectionery Manufacturing 11.7 –1.9 –2.9
119 Other Food Product Manufacturing 9.9 –2.5 –4.4
12 Beverage and Tobacco Product Manufacturing 29.5 2.9 2.1
121 Beverage Manufacturing 28.6 3.9 3.0
Source: Australian Bureau of Statistics, Labour force, Australia, detailed, quarterly, cat. no. 6291.0.55.003. Note: Historical employment data has been annualised and smoothed by way of four-quarter averaging.
1214 Mixed Crop and Livestock Farmers 33.4 –4.5 –2.5
2 PROFESSIONALS
2341 Agricultural and Forestry Scientists 8.7 1.9 5.1
2342 Chemists, and Food and Wine Scientists 12.0 2.5 4.7
3 TECHNICIANS AND TRADES WORKERS
3111 Agricultural Technicians 2.5 0.0 –0.2
35 Food Trades Workers 172.7 18.0 2.2
3511 Bakers and Pastrycooks 30.9 2.0 1.3
3512 Butchers and Smallgoods Makers 22.4 0.7 0.6
36 Skilled Animal and Horticultural Workers 124.5 7.4 1.2
3624 Nurserypersons 5.6 –2.3 –6.6
8 LABOURERS
83 Factory Process Workers 213.7 –26.1 –2.3
8311 Food and Drink Factory Workers 29.2 1.6 1.1
8312 Meat Boners and Slicers, and 11.3 –2.9 –4.4
140
ANZSCO code Occupation
Employed 2012
Total employmen
t growth five years to 2012
Annual average
employment growth five
years to 2012
(000) (000) (%)
Slaughterers
8313 Meat, Poultry and Seafood Process Workers 18.7 5.1 6.6
84 Farm, Forestry and Garden Workers 112.8 –5.4 –0.9
8411 Aquaculture Workers 0.8 –0.5 –9.4
8412 Crop Farm Workers 22.5 –4.2 –3.4
8414 Garden and Nursery Labourers 33.9 –3.1 –1.8
8415 Livestock Farm Workers 31.4 0.3 0.2
8416 Mixed Crop and Livestock Farm Workers 3.6 –1.0 –5.0
8419 Other Farm, Forestry and Garden Workers 11.8 1.7 3.2
Source: Australian Bureau of Statistics, Labour force, Australia, detailed, quarterly, cat. no. 6291.0.55.003. Note: Historical employment data has been annualised and smoothed by way of four-quarter averaging.
Table 25 Percentage of part-time employed in food-related sectors in the Agriculture and Fishing industry and percentage point change between 2007 and 2012
Code Division/Subdivision 2007 2012
Percentage point change 2007 to 2012
A0 AGRICULTURE, FORESTRY AND FISHING, NFD 30.3 23.0 –7.4
1 AGRICULTURE 26.5 28.2 1.7
10 Agriculture, nfd 29.2 27.4 –1.7
11 Nursery and Floriculture Production 33.1 44.3 11.2
12 Mushroom and Vegetable Growing 23.7 33.8 10.1
13 Fruit and Tree Nut Growing 26.7 30.9 4.2
141
Code Division/Subdivision 2007 2012
Percentage point change 2007 to 2012
14 Sheep, Beef Cattle and Grain Farming 25.7 26.6 0.9
15 Other Crop Growing 17.0 19.2 2.2
16 Dairy Cattle Farming 23.5 24.9 1.4
17 Poultry Farming 33.3 31.4 –1.9
18 Deer Farming 0.0 0.0 0.0
19 Other Livestock Farming 35.6 31.4 –4.2
2 AQUACULTURE 21.8 23.9 2.1
4 Fishing, Hunting and Trapping 28.5 24.7 –3.9
40 Fishing, Hunting and Trapping, nfd 34.2 12.5 –21.6
41 Fishing 24.7 27.4 2.7
42 Hunting and Trapping 36.3 0.0 –36.3
5 Agriculture, Forestry and Fishing Support Services 20.4 16.7 –3.6
52 Agriculture and Fishing Support Services 20.7 14.4 –6.3
ALL-INDUSTRIES 28.2 29.6 1.4
Source: Australian Bureau of Statistics, Labour force detailed quarterly, cat. no. 6291.0.55.003. Note: Data subject to rounding errors.
142
Table 26 Percentage of females in food-related sectors in the Agriculture and Fishing industry and percentage point change between 2007 and 2012
Code Division/Subdivision 2007 2012
Percentage point change 2007 to 2012
A0 AGRICULTURE, FORESTRY AND FISHING, NFD 36.5 30.8 –5.7
1 AGRICULTURE 32.6 32.7 0.0
10 Agriculture, nfd 33.8 30.3 –3.5
11 Nursery and Floriculture Production 42.1 46.7 4.6
12 Mushroom and Vegetable Growing 37.0 39.1 2.1
13 Fruit and Tree Nut Growing 30.3 31.6 1.3
14 Sheep, Beef Cattle and Grain Farming 29.8 29.9 0.2
15 Other Crop Growing 25.5 17.5 –8.1
16 Dairy Cattle Farming 36.6 34.7 –1.9
17 Poultry Farming 40.4 45.3 5.0
18 Deer Farming 0.0 0.0 0.0
19 Other Livestock Farming 46.8 52.7 5.9
2 AQUACULTURE 18.1 12.9 –5.2
4 FISHING, HUNTING AND TRAPPING 14.7 16.2 1.5
40 Fishing, Hunting and Trapping, nfd 20.0 8.6 –11.4
41 Fishing 12.5 16.2 3.7
42 Hunting and Trapping 0.0 32.9 32.9
5 AGRICULTURE, FORESTRY AND FISHING SUPPORT SERVICES 22.1 26.3 4.2
52 Agriculture and Fishing Support Services 22.0 28.0 6.0
ALL-INDUSTRIES 45.1 45.7 0.6
Source: Australian Bureau of Statistics, Labour force detailed quarterly, cat. no. 6291.0.55.003. Note: Data subject to rounding errors.
143
Table 27 Percentage of part-time employed in Food and Beverage Manufacturing and percentage point change between 2007 and 2012
Sources: Australian Bureau of Statistics, 2011, Census of population and housing; Australian Bureau of Statistics Labour Force Survey custom request.
149
Table 31 Employment projections for food-related sectors within the Agriculture, Forestry and Fishing industry
ANZSIC code Industry subdivision/Group
Employed Nov. 2012
Projected total employment growth five
years to Nov. 2017
Projected annual average
employment growth five years
to Nov. 2017
(000) (000) (%)
A0 AGRICULTURE, FORESTRY AND FISHING, NFD 2.1 0.3 12.5
01 AGRICULTURE 271.7 –7.4 –2.7
010 Agriculture, nfd 40.0 7.0 17.4
011 Nursery and Floriculture Production 14.1 2.5 18.0
012 Mushroom and Vegetable Growing 12.0 –1.9 –15.9
013 Fruit and Tree Nut Growing 31.9 0.1 0.4
014 Sheep, Beef Cattle and Grain Farming 114.6 –9.7 –8.4
015 Other Crop Growing 13.2 –1.7 –13.1
016 Dairy Cattle Farming 26.1 –1.8 –6.8
017 Poultry Farming 11.0 –1.0 –8.8
018 Deer Farming 0.1 0.0 15.3
019 Other Livestock Farming 10.8 –3.1 –28.2
02 AQUACULTURE 2.9 0.7 23.5
04 FISHING, HUNTING AND TRAPPING 6.9 –1.3 –18.4
040 Fishing, Hunting and Trapping, nfd 0.7 0.3 45.3
041 Fishing 5.3 –1.4 –25.7
042 Hunting and Trapping 0.5 0.1 23.7
05 AGRICULTURE, FORESTRY AND FISHING SUPPORT SERVICES 22.9 2.6 11.1
052 Agriculture and Fishing Support Services
19.1 2.0 10.3
150
Sources: Australian Bureau of Statistics, Labour force, Australia, detailed, quarterly, cat. no. 6291.0.55.003; DEEWR, Industry employment Projections, deewr.gov.au/LMIP/default.aspx?LMIP/Publications/IndustryEmploymentProjections.Notes: DEEWR employment projections are based on seasonally adjusted and trended ABS labour force data from November 2012. Projections are not available for nfd categories. Trended quarterly values differ in this table from the annualised values provided in the tables above.
Table 32 Employment projections for food-related sectors within the Manufacturing industry
ANZSIC code Industry subdivision/Group
Employed Nov. 2012
Projected total
employment growth five years to Nov.
2017
Projected annual
average employment growth five
years to Nov. 2017
(000) (000) (%)
11 FOOD PRODUCT MANUFACTURING 198.2 2.3 1.2
110 Food Product Manufacturing, nfd 24.9 0.8 3.1
111 Meat and Meat Product Manufacturing
58.4 –1.7 –3.0
112 Seafood Processing 1.4 –0.7 –51.8
113 Dairy Product Manufacturing 23.3 3.1 13.5
114 Fruit and Vegetable Processing 6.0 –1.1 –17.8
115 Oil and Fat Manufacturing 0.7 0.1 9.2
116 Grain Mill and Cereal Product Manufacturing
6.6 –0.3 –5.2
117 Bakery Product Manufacturing 54.2 0.3 0.6
118 Sugar and Confectionery Manufacturing
14.1 –0.2 –1.1
119 Other Food Product Manufacturing 9.9 0.6 6.3
12 BEVERAGE AND TOBACCO PRODUCT MANUFACTURING
25.2 1.0 4.2
121 Beverage Manufacturing 24.4 1.2 5.1
Sources: Australian Bureau of Statistics, Labour Force, Australia, detailed, quarterly, cat. no. 6291.0.55.003; DEEWR, Industry Employment Projections, deewr.gov.au/LMIP/default.aspx?LMIP/Publications/IndustryEmploymentProjections.
Notes: DEEWR employment projections are based on seasonally adjusted and trended ABS labour force data from November 2012. Projections are not available for nfd categories. Trended quarterly values differ in this table from the annualised values provided in the tables above.
151
Table 33 Occupational employment projections
ANZSCO code Occupation
Employed Nov. 2012
Projected total employment growth five
years to Nov. 2017
Projected annual average
employment growth five
years to Nov. 2017
(000) (000) (%)
1 MANAGERS
12 Farmers and Farm Managers 162.4 –12.1 –7.4
1211 Aquaculture Farmers 1.5 0.2 14.2
1212 Crop Farmers 41.5 –2.0 –4.8
1213 Livestock Farmers 73.0 –5.2 –7.1
1214 Mixed Crop and Livestock Farmers 31.3 –8.7 –27.7
2 PROFESSIONALS
2245 Land Economists and Valuers 12.7 2.8 21.9
2341 Agricultural and Forestry Scientists 7.6 –0.1 –1.0
2342 Chemists, and Food and Wine Scientists 14.1 –0.4 –3.0
2347 Veterinarians 10.6 1.5 14.3
3 TECHNICIANS AND TRADES WORKERS
3111 Agricultural Technicians 3.8 0.0 0.2
3113 Primary Products Inspectors 4.8 0.9 19.9
35 Food Trades Workers 169.6 8.2 4.8
3511 Bakers and Pastrycooks 27.0 0.4 1.5
3512 Butchers and Smallgoods Makers 22.7 –1.2 –5.5
8312 Meat Boners and Slicers, and Slaughterers 9.0 –2.1 –23.2
8313 Meat, Poultry and Seafood Process Workers 22.9 –1.5 –6.4
8393 Product Quality Controllers 16.8 0.2 1.0
8399 Other Factory Process Workers 6.3 0.1 1.5
84 Farm, Forestry and Garden Workers 106.1 –2.0 –1.9
8411 Aquaculture Workers 0.7 0.1 16.5
8412 Crop Farm Workers 17.6 –10.1 –57.3
8414 Garden and Nursery Labourers 31.6 3.2 10.0
8415 Livestock Farm Workers 29.1 –0.8 –2.8
8416 Mixed Crop and Livestock Farm Workers 4.8 0.4 7.6
8419 Other Farm, Forestry and Garden Workers 11.3 0.1 0.7
153
ANZSCO code Occupation
Employed Nov. 2012
Projected total employment growth five
years to Nov. 2017
Projected annual average
employment growth five
years to Nov. 2017
(000) (000) (%)
8992 Deck and Fishing Hands 7.7 0.2 2.2
Sources: Australian Bureau of Statistics, Labour Force, Australia, detailed, quarterly, cat. no. 6291.0.55.003; DEEWR, Occupation Employment Projections, deewr.gov.au/LMIP/default.aspx?LMIP/Publications/IndustryEmploymentProjections.Notes: DEEWR employment projections are based on seasonally adjusted and trended ABS labour force data from November 2012. Trended quarterly values differ in this table from the annualised values provided in the tables above.
Table 34 Projected change in number employed by food-related sectors, 2011–2025, AWPA scenarios
Source: Deloitte Access Economics, 2012, output model, October.* Subtotal excludes Forestry and Logging and Forestry Support Services industry subdivisions.** Subtotal excludes Cigarette and Tobacco Product Manufacturing industry subdivision.
155
Table 35 Projected change in number employed by food workforce occupations, 2011–2025, AWPA scenarios
Appendix C: Overview of food and beverage workforce initiatives
This summary is designed to showcase the range of different workforce-related initiatives currently in place across the various sectors of the food and beverage production industry. The list is not exhaustive and provides a sample only. It deliberately focuses on initiatives specific to the food and beverage industry, excluding programs that are not industry-specific (such as the National Workforce Development Fund and Workplace English Language and Literacy Program).
Initiatives with a focus on attraction and retention
Initiative Organisation/s
Operating in region/industry Description and link
Moo Baa Munch AgForce Queensland
Queensland
Agriculture
Moo Baa Munch aims at raising children’s awareness of the agricultural sector.
Art4Agriculture is a network of young people that aims to improve perceptions of farming through events and activities which focus on youth, career opportunities, the environment, community and the arts—all linked with agriculture. Programs are tailored to both enhance the image of farmers and farming and encourage young people to consider agriculture-related careers.
art4agriculture.com.au
Australian Agriculture Scholarship
Australian Council of Agricultural Societies and Coca-Cola
Nationwide
Agriculture
Up to 35 scholarships are awarded each year, and are open to students in regional areas undertaking a tertiary qualification in agriculture (either at TAFE, an RTO or university).
agriculturescholarship.com.au
Career Harvest Australian Council of Deans for Agriculture, among others.
Nationwide
Agriculture
This website provides information for prospective students to discover the range of careers available to agriculture and agribusiness graduates.
careerharvest.com.au
Honours and Postgraduate Scholarships
CSIRO Nationwide
Agriculture and science
A joint initiative of the relevant university and CSIRO that offers students mentoring support from both institutions. A number of honours and postgraduate scholarship opportunities are available in science and agriculture disciplines.
Discover Dairy, Picasso Cows and National Healthy Bones Week
Dairy Australia Nationwide
Dairy
Primary school initiatives to help promote a positive image of the industry. Discover Dairy is a website with educational resources that can be included in primary school curriculum.
dairy.edu.au/discoverdairy.aspx
Dairy Manufacturing Scholarships
Dairy Australia Nationwide
Dairy
Six graduate and diploma holders are offered scholarships annually with the objective of attracting recent graduates to the industry.
Dairy Australia, New Zealand Centre of Excellence for Farm Business Management
Nationwide
Dairy
Australian students are offered a one-year Postgraduate Diploma in Agriculture Commerce in New Zealand at leading dairy education campuses, Massey University or Lincoln University.
Department of Education, Employment and Workplace Relations
Nationwide
Food production and processing
The Agrifood Careers website provides information about rural career and study options and links to other relevant websites.
agrifoodcareers.com.au
Primary Industries Education Foundation (PIEF)
Federal government, primary industry organisations, education sector
Nationwide
Agriculture
Peak industry body educating young people, teachers and broader community about food, farming and primary industries, including through the Primezone website. PIEF also works with the Australian Curriculum Assessment and Reporting Authority to embed more examples of primary industry into the Australian Curriculum.
primaryindustrieseducation.com.au
Career and Personal Learning Plan (PLP) information
Food, Tourism and Hospitality (FTH) Skills Council
South Australia
Food, tourism and hospitality
The FTH Skills Council in Australia has created range of material to inform students about the career options available in the food, tourism and hospitality industries. The information is for use in compulsory personal learning plan classes that all South Australian Year 10 students have to complete.
fthskillscouncil.com.au/cgi-bin/page.cgi?id=106
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Initiative Organisation/s
Operating in region/industry Description and link
Meat industry attraction and retention project
Food, Tourism and Hospitality Skills Council
South Australia
Meat processing
From 2006 to 2008, the Skills Council ran a major attraction and retention project that resulted in the publication of How to become an employer of choice in an industry of choice: A practical guide to workforce development in the Australian meat Industry, which provides a broad range of information for employers about how to attract, recruit and retain the people they want to employ. Career pathways in the Australian meat industry: A practical guide to career progression for new and current employees was also produced for prospective employees.
fthskillscouncil.com.au/cgi-bin/page.cgi?id=109
Research and undergraduate honours scholarships
Grains Research and Development Corporation
Nationwide
Grains
Postgraduate research and undergraduate honours scholarships for students studying disciplines relevant to the grains industry and its future.
grdc.com.au/Apply/Training-Awards/Training-Awards
Agricultural training awards
Grains Research and Development Corporation (GRDC)
Nationwide
Grains
GRDC Agricultural Training Awards are one-year scholarships available to students undertaking full-time study at a recognised vocational education and training provider.
grdc.com.au/Apply/Training-Awards/Training-Awards
Meat and Livestock Australia Scholarships
Meat and Livestock Australia
Nationwide
Beef, sheep meat and goat meat
A number of postgraduate scholarships are offered to facilitate research and training in areas of practical value to the Australian beef, sheep meat and goat meat industries.
Mildura Region Industry Workforce Development Strategy
Mildura The Skills Passport (Food and Beverage) includes three core subject units that have been personally selected by key businesses in the food and beverage sector. The training aims to prepare students for entry into the food and beverage sector. Additionally, the Skills Passport aims to value and document employees’ competencies through the Skills Passport website.
skillspassportfoodandbeverage.com.au
Tertiary Scholarship Program
NSW Farmers’ Association
New South Wales
Agriculture
Tertiary Scholarship Program is open to full-time students in their second or subsequent year of tertiary study who are members of the association. Four scholarships are awarded each year and are valid for study outside of New South Wales.
Australian fruit and vegetable producer OneHarvest has introduced a suite of programs aimed at attraction and retention including internships, graduate recruitment and referral bonuses.
oneharvest.com.au/Careers.aspx
Poultry education and training program
Poultry Cooperative Research Centre (CRC)
Nationwide
Poultry
The Poultry CRC’s education and training outputs include: development of resources to support VET courses, scholarships for honours and postgraduate students integrated into CRC research, provision of industry internships, organisation of staff/student exchanges, distribution of a free Teacher’s Resource Kit sent to hundreds of Australian schools.
poultrycrc.com.au/education-training
Primary Industry Centre for Science Education (PICSE)
Primary Industry Centre for Science Education (PICSE)
Nationwide
Food and agricultural science
Organisation conducting presentations for Year 11 and 12 students on science education, running professional development sessions for Year 11 and 12 science teachers and providing industry placement scholarships for science students.
picse.net/HUB/index.htm
Rural Finance Corporation Scholarships
Rural Finance Corporation
Victoria
Agriculture
Scholarships aimed at students in the first or second year of their degree who can demonstrate a commitment to a career within the agriculture industry.
ruralfinance.com.au/scholarships
Horizon Scholarship Rural Industries Research and Development Corporation
Nationwide
Agriculture
In partnership with industry sponsors, the Horizon Scholarship (part of the Investing in People Program) supports undergraduates studying agriculture at university. The aim of the scholarship is to support the next generation of agricultural leaders and facilitate them to build and expand their networks and learn new skills.
This program pays a $1,000 cash payment to eligible farmers to contribute to the cost of employing an apprentice. Apprentices are offered a $1,000 cash bonus upon successful completion of a Certificate II in Production Horticulture.
South Australian Government and industry, Food, Tourism and Hospitality Skills Council, Cheese SA and SA Food Centre
South Australia
Cheese
The initiative sponsored a cheese maker in residence program in 2011, which led to three international experts developing for local artisan cheese makers technical and scientific information incorporated into some 30 units of the Certificate II Food manufacturing—Cheese.
fthskillscouncil.com.au/cgi-bin/page.cgi?id=106
LA Judge Award Tip Top, Bakers Delight
Australasia
Bakery
The LA Judge Award recognises the best young baking apprentices (under 23 years of age) in Australasia, with first prize an overseas study tour.
Australian Government Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education
NationwideFood and beverage processing
Enterprise Connect’s Food Network is a specialised national group, bringing together business advisers with the expertise and networks to assist businesses in the food and beverage processing sector. The Network is targeted at improving the operations, productivity, competitiveness and sustainability of food manufacturers by providing industry connections, knowledge and expertise.enterpriseconnect.gov.au/industrysupport/foodnetwork/Pages/default.aspx
Asia Pacific Confectionery Centre of Excellence
Kraft Foods, CSIRO
VictoriaFood production and processing
Australia’s largest food research and development centre with the aim of creating ‘a new generation of Australian food entrepreneurs who will both understand and be able to access the 1.6 billion Asian middle-class consumers at our doorstep’.premier.vic.gov.au/media-centre/media-releases/5992-coalition-government-secures-kraft-global-rad-centre-and-jobs-in-victoria.html
Competitive Food Initiative
South Australian Government
South AustraliaFood production and processing
The Competitive Food Initiative aims to foster food and wine industry clustering, encouraging innovation and the application of new technologies in the state’s food manufacturing sector.dmitre.sa.gov.au/manufacturing_works/programs_and_initiatives/competitive_foods_initiative
Initiatives with a focus on workforce participation
Initiative Organisation
Operating in region/industry Description and link
Fisheries Indigenous
Fisheries Research and Development
Nationwide An annual scholarship is offered by the FRDC through a scholarship host organisation to an Aboriginal or Torres Strait Islander who seeks to help shape
163
Development Scholarship
Corporation (FRDC) Fishing, aquaculture
the social and economic future of their community and/or region through engagement with the fishing industry.frdc.com.au/research/people_dev_prog/Pages/dev_opportunities.aspx#Indigenous
Fisheries Governance Scholarship for Women
Fisheries Research and Development Corporation (FRDC)
NationwideFishing, aquaculture
The scholarship is awarded to a female member of the Australian fishing industry. The scholarship provides a unique opportunity for an emerging, or new, industry leader to undertake the Company Directors Course run by the Australian Institute of Company Directors.frdc.com.au/research/people_dev_prog/Pages/dev_opportunities.aspx#Women
FRDC WINSC Professional Development Scholarship
Fisheries Research and Development Corporation (FRDC), Women’s Industry Network, Seafood Community (WINSC)
NationwideFishing, aquaculture
Winners of the FRDC WINSC Professional Development Scholarship will receive funding to undertake a personalised professional development program.frdc.com.au/research/people_dev_prog/Pages/dev_opportunities.aspx#WINSC
Grains Industry Indigenous Training Award
Grains Research and Development Corporation (GRDC)
NationwideGrains
The GRDC Indigenous Training Awards provide work placements, tertiary study or other forms of training to develop new skills, build relationships and contribute to building a sustainable and profitable grains industry.grdc.com.au/Apply/Training-Awards/Training-Awards#ITA
Partners in Grain Partners in Grain NationwideGrains
Partners in Grain was established nationally in 2001 following the success of the Victorian program, Women in Grain. The organisation aims to increase the human resource capital of the Australian grains industry through the facilitation of professional development and supportive networks for all partners in the business.partnersingrain.org.au/Document1.aspx?id=2452
Rural Women’s Award
Rural Industries Research and Development Corporation
NationwideRural industries
Each year a female leader in the sector is awarded a grant to develop their vision into a project that will benefit primary industries and rural Australia.rirdc.gov.au/rural-women’s-award
164
Initiatives with a focus on workforce planning
Initiative OrganisationOperating in region/industry Description and link
Skills Needs Analyses
AgriFood Skills Australia
NationwideAgriculture and food processing
Initiative assisting businesses to assess the skills they require.agrifoodskills.net.au/?page=SNA
AgriFood National Regional Initiatives
AgriFood Skills Australia
Warren Blackwood, the Eyre Peninsula, Loddon Mallee and Western DownsRural industries
Following the success of the Make it Work program in Narrabri, four Regional Workforce Development Initiatives were developed. These initiatives were spread across a number of states, with key priorities to build enterprise capability and enhance productivity through innovation, efficiency and speed to market of research outcomes.agrifoodregional.net.au
Sustainability Essentials for Executives
AgriFood Skills Australia
NationwideFood manufacturing
The program is delivered in conjunction with the University of Western Sydney and Energetics Pty Ltd to give participants the knowledge to implement their own sustainability project within their business.agrifoodskills.net.au/?page=SEE
Employer Survey Research Report
AgriFood Skills Australia, Food, Tourism and Hospitality Skills Council
South AustraliaFood processing
Survey of 747 South Australian food manufacturing and processing businesses on labour and skills.fthskillscouncil.com.au/docs/page/105/108/AGRIFOODfinalREPORTJune2009.pdf
Competitive Systems and Practices (CSP) e-learning tool
Australian Industry Group, Australian Government
NationwideFood, tourism and hospitality
The Australian Industry Group has invited food, tourism and hospitality small and medium enterprises to participate in a new federally funded e-learning project that will make expert advice and support available to a limited number of enterprises to improve competitive systems and practices. The trial is due to commence in mid-2013.
The People in Dairy
Dairy Australia NationwideDairy
The People in Dairy is a program designed to give farmers the tools, processes and support to design and run their farms as desirable places to work.thepeopleindairy.org.au
165
Initiative OrganisationOperating in region/industry Description and link
Make it Work initiative
Make it Work Foundation
Narrabri region, New South WalesRural industries
Collaborative workforce reform comprising of local council, employers and industry personnel with primary objectives of improving retention, productivity and skills.nssc.natese.gov.au/__data/assets/pdf_file/0018/61029/Regional_Skills_Development_Case_Study_2_-_Make_It_Work.pdf
Making More from Sheep
Meat and Livestock Australia, Australian Wool Innovation
NationwideSheep meat and wool
Innovation that provides lamb and wool producers with best practice management information and tools to assist them to build productive and sustainable businesses.makingmorefromsheep.com.au/index.htm
National Agribusiness Education, Skills and Labour Taskforce (NEST)
National Farmers’ Federation
NationwideAgriculture
Industry-led initiative that brings together key stakeholders representing the agribusiness sector, aiming to improve the communication and engagement between industry, the education sector and government, build workforce planning capabilities, improve data supply and encourage increased industry ownership for solutions to agriculture workforce development issues.nff.org.au/read/3164/sector-working-together-tackle-education-labour.html
Skills Formation Strategy
Queensland Government
QueenslandAll industries
The Skills Formation Strategy program helps Queensland industries and communities to work together to plan and develop their workforce. The program provides seed funding to set up formal industry and community networks to identify common workforce needs and challenges. Short- and long-term strategies to address the identified issues are then developed and implemented. Since 2003 there have been over 50 strategies supported throughout Queensland. Several projects have been carried out in regional areas with positive results for the agricultural, aquaculture and food processing sectors.skillsformationstrategies.qld.gov.au
166
Initiatives with a focus on upskilling and skills development
Initiative Organisation
Operating in region/industry Description and link
Farm Business Management
AgriFood Skills Australia, Australian Government Department of Agriculture, Fisheries and Forestry
NationwideAgriculture
In October 2012, primary industries ministers agreed to a package of future drought-related programs that moves away from a government-funded crisis response, to a focus on programs that help farmers prepare for and manage their own risks. AgriFood Skills Australia is developing skill sets to provide a basis for nationally consistent outcomes in farm business management. The skill sets will be included in the AHC10 Agriculture, Horticulture and Conservation and Land Management Training Package.agrifoodskills.net.au/?page=FBM
Northern Prawn Fishery accredited workshop
Australian Fisheries Management Authority, Northern Prawn Fishery Industry Pty Ltd
Northern Territory and QueenslandFishing
Developed as part of the Australian Government’s Caring for our Country program, TAFE-recognised training on best-practice fishing has been developed. It examines a range of issues facing the fishery and provides strategies and actions the fishermen can adopt to further improve the environmental sustainability of the fishery. Fishers gain the qualification of SFIEMS301B—Implement and monitor environmentally sustainable work practices.afma.gov.au/2013/04/northern-prawn-fishers-accredited-in-bycatch-reduction/
Industrial Transformation Training Centres
Australian Research Council
NationwideFood production
The Industrial Transformation Training Centres scheme fosters close partnerships between university-based researchers and other research end-users to provide innovative Higher Degree by Research (HDR) and post-doctoral training for the end-user focused research industries vital to Australia’s future. It also awards funding to support the initiative. The priority for the first funding round was food production.arc.gov.au/ncgp/itrp/centres_default.htm
Industry Placement Scholarships
Dairy Australia NationwideDairy
Industry Placement Scholarships are a flexible two-year scholarship with the aim to provide the dairy industry with high-calibre graduates to work on projects that will improve on-farm aspects of the industry’s global competitiveness.dairyaustralia.com.au/Education-and-Careers/Scholarships-and-Awards-V2/Industry-Placement-Scholarship.aspx
Aquatic Animal Department of Nationwide The aim of the training scheme is to improve knowledge and skills in aquatic
167
Initiative Organisation
Operating in region/industry Description and link
Health Training Scheme
Agriculture, Fisheries and Forestry and Fisheries Research and Development Corporation (FRDC)
Fishing and aquaculture
animal health management to support Australia’s fishing and aquaculture industry.frdc.com.au/research/people_dev_prog/Pages/dev_opportunities.aspx
Peter Dundas-Smith Scholarship
Fisheries Research and Development Corporation (FRDC)
NationwideFisheries and aquaculture
The Peter Dundas-Smith Scholarship provides a unique opportunity for an individual to undertake a personalised and supported program to further develop their skills, knowledge and networks to make an effective contribution in their field. The winner of the annual scholarship will receive up to $10,000 through a host organisation.frdc.com.au/research/people_dev_prog/Pages/dev_opportunities.aspx#PDS
FRDC International Travel Bursaries
Fisheries Research & Development Corporation (FRDC)
NationwideFisheries and aquaculture
The FRDC offers four annual competitive international travel bursaries to support individuals to undertake professional development travel. Activities may include conference attendance, study tours and international work experience.frdc.com.au/research/people_dev_prog/Pages/dev_opportunities.aspx#travel
Improved Environmental Work Practices course
Fisheries Research and Development Corporation (FRDC), South East Trawl Fishery Industry Association, Fishwell Consulting, South East Australian Maritime Education Centre
Victoria, New South Wales, South AustraliaFishing
A nationally accredited training course called Improved Environmental Work Practices was developed for fishers in early 2011. The course explains the Australian community’s expectations of the fishing industry and works through issues such as reporting, mitigating protected species interactions, marine pollution, foreign aquatic organisms and how fishery assessments work.setfia.org.au/environment/item/trawl-crew-up-skill-for-the-enironment.html
Australian Universities Crop
Grain Growers Nationwide The AUCC is an initiative in the cropping industry to increase the linkages between university degrees and the rural industry by improving the technical
168
Initiative Organisation
Operating in region/industry Description and link
Competition (AUCC) Grains and specialist knowledge and practical skills of undergraduate students. Over 2½ days students complete eight competition components, which including seed analysis, live crop yield potential and business analysis.graingrowers.com.au/events-courses/eventslist/australian-universities-crops-competition
AgriVenture International Rural Placements
International Agricultural Exchange Association (IAEA)
Australia, New Zealand, Canada, United States, Europe and JapanAgriculture
AgriVenture is a farm work placement program offering a unique opportunity for young people aged between 18 and 30 to travel and work on a farm, in agriculture, horticulture or home management in the following places: Australia, New Zealand, Canada, United States, Europe and Japan.agriventure.com/about-us
Certificate IV in Competitive Manufacturing
Manufacturing Skills Australia
NationwideManufacturing
Certificate IV in Competitive Manufacturing has been developed by Manufacturing Skills Australia in collaboration with industry to provide participants with the tools and knowledge to make immediate and ongoing improvements at the workplace. Core competencies focus on process improvement, waste minimisation and cost managements that are measurable and sustainable. The participant can specialise in food processing.bannistertechnical.com.au/index.php?option=com_content&view=article&id=31&Itemid=25
More Beef from Pastures
Meat and Livestock Australia
NationwideBeef
This program provides a delivery framework for outputs from research and development activities in southern beef production systems. The manual has been revised and redeveloped for online delivery in 2013 and includes the outcomes of recent research and development. The program also delivers a range of events, activities, workshops, demonstration sites, forums and coaching days that bring the principles, practices and tools from the program directly to producers.mla.com.au/Research-and-development/Extension-and-training/More-Beef-from-Pastures
PROfarm Training Program
New South Wales Department of Primary Industries
New South WalesAgriculture and fisheries
NSW Department of Primary Industries has developed the PROfarm training program, designed to improve the skills of local farmers through the completion of a wide number of courses led by Department of Primary Industries staff members.
169
Initiative Organisation
Operating in region/industry Description and link
dpi.nsw.gov.au/agriculture/profarm
Nuffield Scholarships
Nuffield Australia NationwideAgriculture
Nuffield Australia awards scholarships each year to farmers in Australia to study farming practices overseas, which helps to promote a greater understanding of farmers in countries relevant to the scholar. The objective is to increase practical farming knowledge and management skills.nuffield.com.au/about-nuffield-australia/
Graduate Access Program (GAP)
South Australian Government
South AustraliaFood manufacturing
Within the GAP implemented by the South Australian Government, graduates from universities and TAFE will be given the opportunity to be mentored in their chosen industry for six months at premium food businesses.foodsouthaustralia.com.au/2012/08/filling-the-gap-for-local-food-busineses/
Artisan Cheese Making Academy
TAFE SA South AustraliaCheese
The Artisan Cheese Making Academy, Australia, based at Regency Park TAFE is seen as a model for industry engagement and development particularly in the specialty food sector in South Australia.tafesa.edu.au/artisan-cheese-making-academy-australia
The Way We Are campaign
The Grains Research & Development Corporation
NationwideGrains
This program encourages growers to submit case studies about their personal relationship with grain innovations from the last 20 years. Winners are selected by region and given the opportunity to visit some of the world’s leading grains research facilities. This is a development opportunity for the winners and allows them to gain new knowledge and share their experience once back in Australia.waywewere.grdc.com.au
Agricultural Business Scholarship Program
Woolworths, the Royal Agricultural Society and the University of Western Sydney
NationwideAgriculture
This annual program provides 24 young Australians working in the agricultural sector with the opportunity to participate in a fully-funded 12-day course.woolworths.com.au/wps/wcm/connect/Website/Woolworths/About%20Us/Community/Agricultural%20Sponsorship/Woolworths%20Business%20Agricultural%20Scholarship
170
Initiatives with a focus on leadership development
Initiative OrganisationOperating in region/industry Description and link
Australian Rural Leadership Program
Australian Rural Leadership Foundation
NationwideRural industries
Regional winners are selected to undertake a program of personal growth and develop the skills, knowledge and networks needed to be effective in regional, state, national and international arenas.rural-leaders.com.au/programs/arlp
TRAIL (Training Rural Australians In Leadership)
Australian Rural Leadership Foundation
NationwideRural industries
Eight-day residential leadership program for emerging leaders with the objective of developing strong platform of skills, attributes and knowledge for emerging leaders to engage their organisations, communities, and industry in proactive solutions to long-term issues in rural Australia.rural-leaders.com.au/programs/trail
Developing Dairy Leaders
Dairy Australia, Australian Dairy Farmers
NationwideDairy
Skills development courses undertaken with the end goal of an Agribusiness qualification with the National Centre for Dairy Education Australia.dairyaustralia.com.au/Education-and-Careers/Developing-Dairy-Leaders-Program.aspx
Emerging Leader Governance Scholarship
Fisheries Research & Development Corporation
NationwideFisheries and Aquaculture
Annual scholarship providing an opportunity for a new or emerging industry leader to undertake the Company Directors Course run by the Australian Institute of Company Directors.frdc.com.au/research/people_dev_prog/Pages/dev_opportunities.aspx#Emerging
Executive Program Scholarships
Fisheries Research & Development Corporation (FRDC), Seafood Cooperative Research Centre
NationwideFisheries and aquaculture
Seven partial scholarships to enable industry to take part in the Seafood Executive Program. This involves an intensive week-long program focusing on current issues within the food or meat industries, with an opportunity for the program participants to work with people from a wide range of supply chain backgrounds to solve collective problems and discuss current and future industry trends.frdc.com.au/research/people_dev_prog/Pages/dev_opportunities.aspx#FRDC_SEA
Australian Grain Farm Leaders Program
Grain Growers NationwideGrains
National leadership program designed specifically for young Australian grain producers (under 40 years of age) with the aim of developing participants’ leadership skills and knowledge. The program assists participants to develop, implement and evaluate their own on-farm project.
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Initiative OrganisationOperating in region/industry Description and link
These awards provide Australian grain growers (or groups working directly with growers) funding for study tours, travel or other forms of training. The aim is to develop new skills, build relationships and acquire new information that will contribute to building a sustainable and profitable grains industry.grdc.com.au/Apply/Industry-Development-Awards
Wine Grape Growers Decision Support Network
Wine Grape Growers Australia
NationwideWine
The Network is a group of ‘future leaders’ of wine grape growers that contributes to WGGA Executive Committee meetings. The aim is to expose future leaders to national industry issues, allow them opportunities to extend their leadership skills and to broaden the decision making of the executive committee.wgga.com.au/overview/committees/wgga-decision-support-network
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Appendix D: Reference group members
Dr John Edwards, Chair, AWPA Board Member
Ms Tanya Barden, Australian Food and Grocery CouncilMr Tony Battaglene, Winemakers’ Federation of AustraliaMr Arthur Blewitt, AgriFood Skills AustraliaMr Geoff Bloom, Rural Skills AustraliaMr Craig Burns, Rural Industries Research and Development CorporationMr Michael Claessens, AgriFood Skills AustraliaDr Rosalind Deaker, University of SydneyDr Russell Dean, Department of Industry, Innovation, Climate Change, Science, Research and Tertiary EducationMs Jennifer Dowell, Australian Manufacturing Workers’ UnionMr Brian Duggan, National Farmers’ FederationDr Theresa Craig, Agribusiness Association of AustraliaMs Lynn Henry, Agribusiness Association of AustraliaMr Mick Keogh, Australian Farm InstituteMs Jenny Kroonstuiver, National Meat Industry Training Advisory CouncilMr Daniel Macpherson, Department of Agriculture, Fisheries and ForestryMr Tim Nelthorpe, National Union of WorkersAssociate Professor Ruth Nettle, University of MelbourneMr Paul Richardson, National Union of WorkersMr Mike Ryan, Department of Agriculture, Fisheries and ForestryMr Graham Smith, Australasian Meat Industry Employees’ Union
Ms Lise Windsor, AWPA Secretariat
Dr Simon Stratton, AWPA Secretariat
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