Dairy expansion rewards Fillipino workers

Rural News

Dairy industry reliant on workers from the Phillippines

7th Jan 11, 1:58pm by Tony Chaston

Over the Christmas break I visited a new dairy conversion in Southland complete with it's Fillipino dairy worker.

I was informed that this nationality dominated the dairy sectors work force in Southland, and were respected for their hard working ethics.

With youth employment in NZ reaching nearly 20% what is wrong with our young people, when there are many opportunities in the expanding dairy sector.

The hours are long and hard, but that is the ideal reciepe for young people to accumulate capital and work habits, that will return good dividends later in their lifetime.

Over the last few years the demand for experienced and reliable dairy farm workers has grown rapidly, as the industry continues to expand. To meet the labour shortfall the industry has become depended on migrant workers, mainly from the Philippines. Filipino dairy farm workers have been working on dairy farms outside the Philippines for several years now, including large dairy farms in the Middle East, Japan, Ireland and the UK. Farmers from around the country are unable to find suitable dairy farm workers within NZ reports Scoop.

Immigration Placements Ltd (IPS), one of NZ's oldest companies specialising in placing overseas dairy farm workers with NZ farmers, said the demand has been very strong for dairy farm workers from the Philippines following the recovery in milk prices last year. IPS opened a branch office in Manila, Philippines early 2008 where its own staff who screen and check each applicant individually before submitting them to potential employers. This ensures farmers only receive quality applicants. Most of the migrants are coming to NZ to stay permanently and become residents. They often bring their families to NZ once they have settled in – Immigration NZ policies are supportive by allowing partners and children to come to live.

Immigration NZ will only approve work visas if applicants can provide at least two years proven work experience on commercial dairy farms. Most applicants have animal science or veterinary degrees.

Over the years IPS has supplied hundreds of dairy farm workers to farmers around NZ, from Northland to Southland. For most applicants farmers are required to obtain approval from Work & Income to show that there are no suitable applicants locally. If the applicant has proven supervisory experience in various aspects of dairy farming ranging from milking to pasture management, they may qualify under the Skilled Migrant Category which will avoid the need to having the approval from WINZ first.

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19 Comments

by Kunst | 7th Jan 11, 2:24pm 1294363499

Youths all over the world study, why not to study - because too many study, in stead of getting education/ skill and a job in the production or health sector.

by Casual Observer | 7th Jan 11, 3:04pm 1294365866

With youth employment in NZ reaching nearly 20% what is wrong with our young people, when there are many opportunities in the expanding dairy sector.

There are also opportunities to be doctors, nurses, plumbers etc. To be a sucessful farmer you have to WANT to be one. Plenty of kids get caught up with the wages they can command but after a while they realise that they really don't want to be in a 7 day a week industry. We farmers, do not need tyre kickers coming in to the industry. We want/need people who want to be there.

What we don't hear so much about are the kiwis, who after having gone and had a career outside of dairying, are coming in to the industry late 20s early 30s, are motivated, and move up the career pathways quite quickly.

Unless of course Tony you are regurgitating that old stereotype: that to be a farm worker you don't need any modicum of intelligence and that anyone can be one? ;-)

My advice to any youngster coming in to the industry is to consider getting a trade or having work experience outside the industry first, unless they are truly committed (and that includes committed to being an Agricultural Apprentice/study while working).

by speckles | 7th Jan 11, 3:25pm 1294367112

The problem is young people don't know what they want and only learn the good and bad of any occupation when they have worked in it.

The other part of the problem is aspirational parents who want their children to be in the professions or the growing yearning by the young for media/high(sub-celb.) profile roles.

Resulting in qualification inflation and people directed into an excess supply labour market. Finally some user will exploit via internships.

Both roles which are scarce as...I find it hard to understand that physical work is looked down upon by many..it would save me having to go to the gym :-)

Generation Y-Z that I interview are more interested in the event planning side of my business rather than the business analysis side...dairy would not get a look in - too hard physical work and where is the perceived stautus....

by Anon annoy anono | 7th Jan 11, 3:41pm 1294368060

Problem is the capitalist focus on short term gains

We refuse to invest in our young people - by offering entry level positions for them to find out what they can and cannot do

We only want experienced workers

Immigration should be limited to professionals and tradespersons who are bringing skills to the country that we dont have - not merely work experience

Labour intensive work should NEVER be allowed to be filled from offshore - we should be training our future here.

Oh - and by the way - I have a twenty year old that does not want to go to varsity to get a useless degree - wants to do physical stuff - but cannot get anything because he has no experience

by Casual Observer | 7th Jan 11, 4:50pm 1294372250

I don't agree we refuse to invest in young people. Many young people want it all and want it now - good wages, standard hours and nothing too physical. Those that don't and are motivated will achieve what they want.

Agriculture is the one industry that IMO invests in young people. It is an industry that 'gives the young a go', straight from school with little or no experience. Many have a go and decide it's not for them, but many also stay and go on to be successful. The best employers for the young are usually the older, established farmers. They have the time and patience to teach and don't usually work such long hours as their herds are smaller.

The speed at which the dairy industry has grown is a key reson we have had to employ immigrants. Having said that, it is not so easy to get foreign farm workers now, as it used to be a few years ago when basically anyone could come. The farms where some immigrant workers work are larger ones where you are do nothing much more than just milk the cows (so no rounded farming experience), medium sized ones that find it cheaper to employ immigrants, or farms located in areas that many kiwis don't want to live - West Coast, remote dairy farms.

Anon annoy anono: If your 20 year old is motivated, not afraid to move to the provinces and willing to give anything a go just to get started, I am sure he will find employment. There are plenty of courses for things like truck drivers, pre-apprentice courses etc for young folk. Parents and their networks are not to be underestimated in helping their kids to find work. If someone wants something badly enough they will make it happen.

by Kate | 7th Jan 11, 5:38pm 1294375093

Tony, did you ask what the Fillipino was earning?

Don't know about the dairy sector, but the NZ fishing industry I believe employs more foreign than local deck hands because the wages paid are so low.

by Casual Observer | 7th Jan 11, 8:02pm 1294383762

Kate, all the situations I know of, the farmer pays the workers direct and the employees are free to negotiate an increase. To get a work permit here they would have to be employed by a New Zealander as their permits are usually employer specific. They are therefore covered by employment law here and minimum wage applies.

My understanding is that in the fishing industry fishermen are employed by companies in their home countries who have contracts to supply labour to the fishing industry. Happy to be corrected on that.

by Sheep Shagger | 7th Jan 11, 9:08pm 1294387695

CO,Your comment re older people getting involved in dairy is a good one. My city brother inlaw with no farming experience got into a dairy farming job 3 years ago when in his mid 30s. He has taken to it like a fish to water, his wife helps with the milkings and calf rearing and they have advanced into management and a very good salary quickly. There cannot be many industries where you can go from zero to management in 2 to 3 years and pull in a bloody good salary,house, meat, milk included etc. The point being he was at the right time of life to commit to his career. They are long hours and you are never really off duty, theres always a sick animal to check or an irrigator to shift etc.

They have all sorts of trouble getting good young staff and theres a high turnover rate. It is not a career that suits those only wanting to work their 40hr week and hang out with their mates on the weekend.

I recall the dairy industry running ads targeting older family type people a couple of years back and I recon thats a good stratergy. It does seem wrong that we have to bring in immigrants to fill the gaps when we have unemployment here. The dairy industry needs to keep selling itself as a real opportunity for motivated kiwis to advance themselves, because it most definately is.

by Casual Observer | 7th Jan 11, 10:24pm 1294392267

SS Your brother in law typifies those that come in to dairying after 'having had a life' first. That is why I encourage young people to get out and do something else first, unless they show a determination to to travel after a few years dairying. They are more motivated and you don't see the burnout at around 40yrs old (the dairy men) if they have had some sort of life experience apart from milking cows.

Is your brother in law milking more than 600cows? Once you get to 600cows or more it gets hard to get/retain staff. Likewise if you are a fair way from town.

I do know of many young farmers who went in to it straight from school, most of which have taken some time out, who are doing very well and are totally committed. Have spoken to a couple of young chaps who are looking to go contract milking for the first time, but they say there isn't much out there - not too many are moving on, so the labour market for 3yrs plus experience is pretty tight.

A young early 30's 50/50 sharemilker is debt free milking 450 cows. He has a $1m+ asset and his net before tax, is over $250k. He also has off farm investments. He works in the business and employs 1.5FTE. The .5 covers relief milking and help in the spring.

He is quite happy staying put as with that sort of income he can have a pretty good life. He is fortunate his employer is also quite happy for him to stay, as that is the one big risk of 50/50 - the farm being sold, the bosses son wanting to come home to the farm etc.

by Sheep Shagger | 7th Jan 11, 10:49pm 1294393788

Theres a certain irony here I think as on this site there is much debate about the lack of skilled,challengeing and financially rewarding jobs for young people in this country, when all along right under our noses, in our biggest industry there are great opportunities as outlined above. I hope the dairy industry can get that message across because the demand for skilled workers is going to be strong with another round of conversions underway.

by Steptoe | 9th Jan 11, 9:31am 1294518661

by speckles | 07 Jan 11, 3:25pm New The problem is young people don't know what they want and only learn the good and bad of any occupation when they have worked in it. by Kate | 07 Jan 11, 5:38pm New

Don't know about the dairy sector, but the NZ fishing industry I believe employs more foreign than local deck hands because the wages paid are so low.

2 very interesting comments, both situations are dependant on one being able to, our society alowing those youth out of work to have the freedom of working or not, and the freedom of doing nothing because they dont know what they want to do.

Do the foriegn workers milk cows away from home and family, by choice or nessesity?

Do our foreign fishing crews work for low wages by choice?

No...they do it out of neccessity and they are able to do it in NZ because we have a generation of youth who we allow to sit on butts because a wage is low or cause they dont feel like doing THAT job.

That is sick.

I saw a van the other day..The side said "we do those jobs others dont want to" To me that says..."I dont want to do this but thanks modern youth, I will retire by 35"

Or pyut simply..20% = spoiled little bratts = a bunch of parents to scared to give their kids a 'kick in the seat of the pants'

Why is this country not as afluent as say Aussie? because there are too many who the concept of working sawn to dusk, hard out, and are not willing to work for less than tradesman wages, while sweeping up behind the fradesman.

And that is how and why tradesman earn the good wages.

by Kate | 9th Jan 11, 10:10pm 1294564253

Why is this country not as afluent as say Aussie?

Because they pay better wages in Aussie. And on top of the better wages the employer contribution to your super fund is 9%.

by ITYS | 9th Jan 11, 9:07pm 1294560461

Or to look at things another way we could look at how the corporate farmer and farmers in general are among some of the most woeful employers I have ever seen in my life. They seem to operate with a paradigm of 'the hairy this and that' and are so desperate for every penny they can get to service the $45bn of rural debt that they attempt to do it at the workers loss.

The industry made awesome gains about 5 years ago but things have just gone backwards.

Also, the bulk of farmers are trying to run factory styles 3 hours from the nearest town, utilise division of labour to its fullest and not look to bring people through.

You reap what you sow.

by Casual Observer | 9th Jan 11, 10:43pm 1294566204

There are good and bad employers in every sector of the economy as there are good and bad employees. Why should agriculture be any different?

the bulk of farmers are trying to run factory styles 3 hours from the nearest town

Think about your statement ITYS - the numeric bulk of dairy farms in New Zealand are in the Waikato, so that is where the bulk of dairy farmers live. It is almost impossible to find dairy farms in the Waikato who are 3hours from the nearest town.

Corporate farmers are the minority so again they would not constitute being classed as, as the bulk.

that they attempt to do it at the workers loss.

Specific examples of this please?

Have you worked on a dairy farm? If so in what capacity?

You reap what you sow is correct - good farmer employers reap good farm staff.

by Omnologo | 10th Jan 11, 1:24pm 1294619069

CO, who milks more cows and employees more staff corporate farmers or "the typical waikato farm'. From what I have seen working for a corporate farmer is soul destroying fpor anyone, even Philipinos and Sri Lankens.

by Casual Observer | 11th Jan 11, 9:46am 1294692411

Corporate farmers are the minority. There are family owned farms who milk 1000+ cows - not all these farms are corporates. Sure corporate farmers may per farm employ more staff/milk more cows but if you add up the total number of farm employees in NZ and take out the number of staff they employ, I believe that you will find that corporate employees are not the majority of farm workers.

I guess to some degree it depends on how you define a 'corporate farm'. Is that where the ownership is held by people of a non dairy farming background, or a mix of non farmers and farmers - that is how I define them. But then others will call equity farms, corporate farms, then again some mistakenly believe that any farm over 800cows is a 'corporate farm'.

Why do you think kiwis are not keen to work on some of the farms that filipinos etc work on - because they know that they are not going to be motivated by rising at 3-4am every morning and spending up to 8hours in a cowshed every day.

Not all corporates are bad employers, some with multiple farms actually have career pathways for staff as they recognise the value in retaining staff.

by ITYS | 10th Jan 11, 1:52pm 1294620767

CO, you must excuse the brevity of my reply. I could write a thesis on the topic and refer to a number of specific examples so please don't take offense at some of the generalistic comments that I have made (and probably will continue to...). I speak from a relatively qualified position having been a farm worker, manager, consultant and agribusiness bank manager (not necessarily in that order) so have been been an objective onloker for a number of years.

The article above refers to Phillipino workers and it is my understanding that you will find the bulk of these workers in the South Island due to the significantly greater number of farms being 800 cow+ operations compared to the Greater Waikato. Phillipino workers are generally employed as 'milk harvesters' only as you would be hard pressed to find many kiwi workers to fill these roles - especially if they are wanting to progress up the chain. Similarly, you will be hard pressed to get the older couple to leave the city and go farming to work in a similar role.

I could go into numerous examples of shoddy employment practises on many New Zealand dairy farms - the reality is that in the corporate world, people management is a taught skill with external providers complimenting the mentoring process internally to bring the next group of managers through at any one time. There rarely is any of these practises taken in to the farm gate. Attending a worskshop slightly hungover at SIDE is a start but hardly a qualification). I also appreciate that there are a good number of farm employers who are excellent at what they do and in general you would see these operations provide a more consistent EBIT over a 5 year period than the poorer employer. The reality is it is very hard to give an answer with empirical evidence to compare the good vs not-so-good employer. And when it comes to the large scale farming enterprises where there is the ability to put in place a division of labour practises - think calf reare/tractor driver/herd manager/milk harvester - there will always be the struggle beween the bourgoise and the proletariat. One could say it is a good job it is not a unionised industry outside of the dairy company otherwise it would be a really interesting place to be.

As I illuded to in my first post, the industry over the last decade has gotten better in terms of a number of practises - employment contacts being probably the greatest gain led by the Feds - the challenge for the industry is are they able to really raise the bar over the coming decade?

by Casual Observer | 11th Jan 11, 9:55am 1294692906

Thanks ITYS for a more balanced comment and acknowledgement that not all farmers are bad employers.

If NZers are serious about stopping development of land such as the McKenzie country in to dairying then they need to lobby the govt to remove the requirement that Fonterra cannot refuse to pick up milk from anyone, anywhere in NZ.

I recently drove through the Maniatoto and saw a milk tanker on it's way to pick up milk from a farm there. It is crazy that a company is forced to take a tanker to a very remote location, miles from any factory, to pick up milk because of a govt decree. Especially when it's competitors can cherry pick where their suppliers come from and especially when it's competitors have substantial foreign backing/ownerhip.

by ITYS | 11th Jan 11, 10:05am 1294693548

They may not be able to refuse to pick milk up but I do know that they have put in specific mileage differentials for some of the newer conversions that are supplying Fonterra - these mileage differentials are common place within the group of 'other' dairy companies.

The best way to stop these conversions in vulnerable/tourist areas is through the use of regional council - as has been the norm to date - with legislation at national govt level to ensure the environment court upholds any judgement.