North Canterbury News: April 28, 2022

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RURAL LIFE 22 North Canterbury News, April 28, 2022 Pay areason to look at agricultural career An average growthof13 percent in pay packages in the last two years is another reason for moreNew Zealanders to consider a career in agriculture, Federated Farmers PresidentAndrew Hoggard says. The 2022 Federated FarmersRabobank Farm RemunerationReport showssince the 2019/2020 survey weightedaverage incomes in the dairy sector have grown15% (to a‘total package’ average valueof $67,251). They’reup14%, to an average of $66,859, in the sheepamd beef sector; and up 7% in arable (to $68,618). ‘‘Oursurvey shows thaton top of wagesadding in other factorsthat make up the totalvalueofremuneration packages for farmstaff, such as accommodation, meat, firewood and KiwiSaver, there’sseveralthousand dollarsofextra valueto workers acrossall the sectors,’’ Andrewsays. ‘‘In towns and cities, big chunks of workers’ income are swallowed by accommodation costs. ‘‘Butinour dairy sector 75% of employers provide accommodation for staff (61% sheep/beef; 41% arable), withthe average accommodation cost per week being $157$187.’’ The survey, carried out by independent firm Research First, is based on responses from 729 employers/farm sector businessesofall sizes, coveringatotal of more than 2,200employees. ‘‘So as well as job security in asectorthat has ploughed aheadthrough tough COVID timesasthe engineroom of our economy, plusthe satisfaction of working outdoorsand growing quality food for families here and in scores of other countries,the survey makes clearthere are solid pay packages available,’’ Andrew says. ‘‘Those who havethe right attitude and show leadershippotential can find satisfying career pathways. ‘‘Forexample, in the last two years the total value of the remunerationpackage for adairy operations manager has jumped25% to an average$107,593 and a sheep/beefstock manager is earning an average 18 percent more in wages and addons for atotalaverage of $78,076. ‘‘Farm businesseshave clearly moved to stay competitive in atight labour market, and to reward staff. ‘‘That has been even more important with the pandemic disrupting availability of international workers.’’ The FedsRabobank survey alsoshowsthat across the sector,average reported hours workedfall belowthe International Labour Organisation recommended maximum standardworking time of 48 hoursper week (forfulltimers dairy47.2 hours, sheep/beef 44.8,arable 46.2). Rabobank New Zealand chiefexecutive officer Todd Charteris saidthe 2022 report is the thirteenth report the bank has developed in conjunction with Federated Farmers sincethe partnership began in 2008. ‘‘In addition to data on farm salaries and total package values, the report also provides information related to onfarm positions across the dairy, sheep, beef and arable sectors,’’ he says. Rabobank was proudto partner with Federated Farmers to producethis report which both employers and employees can usetohelp guide remuneration discussions. Costs eat into profits By TIM CRONSHAW Fonterra has foreshadowed a$9.30 to $9.90 payout for eachkilogram of milk solidswith a$9.60 mid range. That could yet go higher for the next forecast in May before the final wrapup —ifdairyfuturesmarkets are any indication. But the list is growing for increasing costs —interestrates, wages, fertiliser,agrichemicals,fuel, animal health, contracting and overall inflation. The costproportion is now believed to be north of $7.50 for each kilogram of milksolids produced. Federated Farmers North Canterbury dairy chairman KarlDean said this season’srecord forecast wasn’tlike payoutincreasesofthe past because costs were rising at the same time,ratherthan following a year later. ‘‘It wouldn’t surprise me if it was $7.50 to $8/kg,’’he said. ‘‘The key is the profitmargin and that is no more than and could be less than ayearago whenthe payout was $7.54/kg. ‘‘We’ve had a$2payout jump but I doubt we’vehad a$2profitjump.’’ If the forecasted milk price was adjustedfor inflation, the profit marginprobablywouldn’t be as high as 2013’s $8.40/kg. The Leeston farmer saidfarm costs had liftedmore than $1/kg andthat could be expectedtoincrease further on the backofthe Ukraine war. He said many farmers didn’t have the ability to lower their costsaswages never wentdown and fuelprices don’t seem to drop as muchasthe oil price. ‘‘All the costs havecreeped up internationally and that’snot just New Zealand. Give and take ... Federated Farmers North Canterbury dairy chairman Karl Dean is worried rising costs are consuming much of the record milk price. PHOTO: FEDERATED FARMERS ‘‘Fertiliser’shad ahuge jumpand we haven’t heard thelastofthis as this jump is related to Covid19. ‘‘Thejump coming is related to the war in Ukraine and that’saffecting production worldwide.’’ He said it was a‘‘vicious circle’’ with lowerproduction reinforcing commodity prices and overseas competitors would soonlobbyfor subsidies to be lifted. The dairy cull is still increasing in the United States as more farmers swingtobeef becauseofhigh feed costsand production is also down because of high inputs in Europe. Mr Dean said the April 1increase for the minimum wage had closed the gap betweenthese workersand lowerrung managers who would alsowant a pay rise. Apoor harvestwould sendgrain and seed prices‘‘through the roof’’. Big picture solutions to match big Innovation isatthe root of everything we do. Talk to your local Zimmatic ZIMMATIC dealer today www.zimmaticanz.com Built for today to Talk to your local Zimmatic irrigation dealer today to find keep pace with tomorrow. out how they can help make every drop count. Zimmatic ® is aregistered trademark ofthe Lindsay Corporation. ©2021 Lindsay. All Rights Reserved www.lindsay.com/irrigateanz
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North Canterbury News: April 28, 2022

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