The dairy sector is currently experiencing unprecedented poor staff retention rates. This article looks at an innovative and successful new way to help with this problem.
Poor retention rates
As a fourth-generation dairy farmer, I know first-hand how challenging staffing on farms can be. There are some shocking statistics in our industry, such as the DairyNZ 2022 figure of 58% of new entrants not lasting a season. More recent findings suggest this figure could be closer to 75% (Shamubeel Eaqub, Dairy Exporter Podcast, May 2024). While we pride ourselves on being among the most carbon-efficient producers in the world, leading in innovation and in so many other aspects, we must ask why we fall short in managing our people.
Throughout 15 years of farming, I worked my way to become an equity manager of a 650 cow farm just outside Lincoln, Canterbury. In 2018, we began electronically recording farm hours. By 2021, I had summarised this data into a graph (Figure 1) displaying the monthly hours worked over 12 months alongside the 3.5 full-time equivalent (FTE) staff.
Figure 1 clearly illustrates one of the most important factors leading to the dairy industry’s inability to retain staff. A new entrant starts in June when we aren’t milking, and the farm is reasonably relaxed. Then, with the onset of calving, the farm changes dramatically. The workload increases exponentially; the days start earlier and end later. The weather during this period often deteriorates into cold, wet conditions that make the tasks physically harder. For someone who has just settled into a routine of relative calm, this sudden escalation can be overwhelming.
The challenge continues as mating season follows closely on the heels of calving. While the day-to-day tasks might shift in nature, the demand for long hours remains unchanged. This back-to-back scheduling of two of the most labour-intensive periods in the dairy farming calendar leaves little room for recovery, pushing the physical and mental endurance of workers, particularly the newcomers.
This baptism by fire is a pivotal experience. While it can accelerate learning and skill building (sink or swim), it also significantly heightens the risk of burn-out and job dissatisfaction.
For many the reality of working in such a tough environment, coupled with poor rosters and long hours, prompts a re-evaluation of their career choice in dairy farming.
As the statistics show, most leave. Poor retention rates in any industry mean the overall skills and experience are reduced.
After seven seasons, we have established that operating our dairy farm requires between 8,000 and 9,000 hours of labour annually. As shown in Figure 1, the demand for labour isn’t consistent throughout the year. So why do we structure our farms in such a way that requires long hours from our staff during calving? How can we tackle this issue on a meaningful, industry-wide scale?
Peaky periods
There is no better time to be a young or a new person in dairy farming than at present. Ageing farm owners who are being suffocated by regulations and wanting to exit, alongside innovative technology being developed, stronger balance sheets post-downturn, and Fonterra’s flexible shareholding are examples of the industry being full of potential for new entrants.
The opportunities are endless for people who want to get stuck in and make it happen. However, not everyone can or wants to be farm owners, so we need to factor this in when we staff our farms and address the ‘peaky’ periods in the dairy calendar to create a better working environment.
On top of this, decision-makers on dairy farms need to evaluate how they spend their time. Should they really be spending time doing $30 per hour tasks versus $100 per hour management or decision-making jobs? Can another labour source be utilised to free decision-makers up?
In 2021, I had an idea to try and address this peaky period. Throughout my dairy career, like many others, I have used calf-rearers and relief milkers to help out on the farm over calving, and to cover staff injury, illness and annual leave. These people are often highly skilled and reliable, but they just cannot commit to full-time work year-round.
Development of Ag Assist
So the question was – how can we tap into these people in society at a scale that can really make a difference? After reading the AirBnB and Uber book, ‘The Upstarts’, I imagined creating something similar for the food and fibre sector. Could we use technology to connect this under-utilised workforce for our sector? Fast forward two years and we have a dedicated team at Ag Assist HQ and a very supportive shareholder base who believe in the vision. We launched in Canterbury, but are now spreading it throughout the regions and rural communities of New Zealand.
Ag Assist aims to help reduce some of the effects of these peaky periods to lessen the burden on full-time staff and allow a better work-life balance for farmers. It provides a platform to seamlessly connect workers and businesses in the food and fibre sector. Initially, the focus was on the dairy, sheep and beef, and arable industries, but the platform has been able to be applied in many different ways in the food and fibre sector.
People in society who cannot work full-time were initially targeted, but it has evolved to anyone seeking work of all types. For example, parents coming back to the workforce, semi-retired farmers and growers, students, and even NZIPIM members who have been on the platform to get their farming fix or earn additional income. These people often already have great skills and experience, but they cannot work 40-50 hours a week. However, they can work 20 hours a week so the full-time staff can have a sleep in, watch their kids play sport on Saturday morning, or relief calf-rear.
How it works
The platform functions as a marketplace, effectively connecting farmers in need of staff with individuals seeking employment opportunities. Essentially, it serves as a comprehensive recruitment platform, streamlining the process of connecting businesses with staff.
Workers register and create a profile, much like an online CV. And for those wishing to enhance their credibility, there is an option to become verified. This involves a small fee, and once verified, a verification tick is displayed on their profile.
Similarly, farmers register and create a profile and can then post jobs or view the workers profiles. Ag Assist workers in the area are then notified on the app once the farmer posts a job. Workers can directly message the farmer, who can review their profiles, including proximity to the farm, before deciding to accept or decline the worker. If a farmer chooses to engage the applicants, a fee is applied. Farmers also have the option to schedule workers, record timesheets and handle payroll.
After the job(s) have been completed both parties can rate each other 1-5 stars with an optional comment, similar to Uber and Trade Me, which is to create a self-regulating ecosystem. This is very important, especially to the workers, as they are striving to maintain a 5 star rating.
The technology behind the app allows workers to update their address as they move around New Zealand, ensuring they receive job notifications relevant to their current location. This is helpful for backpackers and students returning home from holidays.
Initially, we anticipated the system would primarily facilitate short-term and one-off employment opportunities. However, it has also proven effective for full-time positions. Farmers appreciate not having to repeatedly train new people and the platform simplifies the process of finding, connecting with and managing staff. Most workers tend to stay with the same farm until the completion of their work, whether it’s a one-off job, or spans weeks or months, after which they often return to the platform.
The benefits to farmers and workers are clear: this platform taps into an underutilised workforce on a scale previously unseen. Farmers are telling us that they have are having a better work-life balance because they have been able to access this workforce. The main benefit to workers is that they are gaining the opportunity to earn additional income when they have struggled previously as there has been no easy way to connect with farmers.
This technology is also starting to be used in all sorts of ways to ease the burden on farms. A recent job post in Canterbury was titled ‘Domestic Assistance’, which was basically helping over calving with housekeeping, gardening, firewood and running errands. The platform immediately found three quality applicants for the farmer. Also, the feedback we are receiving is that the quality of workers the platform attracts is very good. The people who are seeking work are highly motivated to earn money and have thus far been reliable.
Some recent examples of jobs that have been filled are:
- A dairy support manager’s 2IC broke their ankle. The manager posted a job on the platform, and within an hour an Irish backpacker with a farming background was connected with the farmer for eight weeks
- A calf-rearing farmer’s wife posted a job to find someone to cook meals for her over calving for five days a week
- A woman with a rural professional background recently moved to the South Island, registered for Ag Assist, and straightaway has been connected to a local farmer to help with drying cows off and walking cows to grazing over a three-week period. She will also help the farm with calf-rearing during calving
- Plus dozens of examples of farmers being connected with regular staff for the likes of relief milking, tractor driving, mustering, calf-rearing, full-time finishing the dairy season.
As urbanisation brings towns and cities closer to what were once remote farming areas, we are discovering that most of the workers on the platform live locally, typically within 50 km of the farms. This proximity is significant because it highlights a valuable labour resource that has always been part of our communities but was previously difficult to tap into effectively.
The shift towards urbanisation presents an opportunity for local employment that we haven’t fully utilised in the past due to a lack of connection between farmers and potential local workers. With platforms like Ag Assist, we can now bridge this gap. This accessibility not only makes it easier for farms to find and employ people from their own regions, but also supports the local economy by keeping employment within the community. Moreover, for workers, this means reduced travel times and the ability to work close to home, which is an attractive prospect for many seeking employment in the sector.
A new feature on the platform is the student job board, which allows farmers to post jobs and specifically target university students through Ag Assist’s Talent Marketplace. Currently, with over 300 students active on the platform, it offers farmers a unique opportunity to access and review the profiles of New Zealand’s future farmers. Additionally, service providers – like consultants, farm engineers, and tailing/docking contractors – can now sign up and advertise their services on the platform, making it easier for them to connect with farmers and growers across the country. Outside farmgate businesses are also starting to post jobs on the platform to target this talented labour pool.
Think differently
Immigrant labour is getting harder to source and the cost of living is high so New Zealanders are motivated to work. Now is our chance as a sector to think differently about how we staff our businesses because the status quo isn’t working.
If we do what we’ve always done, we will get what we’ve always had. And what we’ve always had isn’t good enough – as the statistics show.
You could argue the most economically important people in New Zealand society at present are those who decide where to send the cows each day and work on dairy farms. Let’s try to look after them this calving season and beyond, ensuring we retain these invaluable people.
Tony Dodunski is CEO of Ag Assist based in Canterbury (www.agassist.co.nz). Email: tony@agassist.co.nz
Source: NZIPIM, September 2024
