For the first time in ten years, Agriculture ITO training numbers in New Zealand are down. Not by a large margin but significant all the same. Clearly this trend is related to the economic downturn and how farmers see their future.
I can sympathise with the plight of small to medium business owners looking to tighten their belts amid a host of financial pressures. But for the industry as a whole, this trend if it worsens is worrying and threatens longer-term prospects for recovery. To put it bluntly, cutting training is the worst possible response in an industry that relies on quality, skills and innovation to remain competitive.
Cutting training is illogical. We’re only as good as our people.
The reality is training pays. It boosts the bottom line by raising productivity and giving people the skills to reduce on-farm costs. Don’t take my word for it. For a number of years now international research has shown that training is a genuine investment which boosts your bottom line.
Research we have done verifies these international findings. It shows, for example, that if you own a dairy farm, every trainee you have has the potential to deliver you up to a 30% improvement in the way you use your feed, a 20% improvement in heat detection, a 24% improvement in mastitis detection and a 30% improvement in lameness detection. We estimate that’s worth $8,000 in improved productivity for a staff member with responsibility for a herd of 128 cows.
Studies in the sheep and beef industry estimate that a well trained staff member can contribute up to $17,000 to a business by managing pasture and stock better.
What these studies prove is that training is crucial in helping farms achieve greater productivity and reducing costs, the very thing that farmers want to achieve in an economic down-turn.
It’s not the people or the training that need to be reduced, it’s the wastage. Now, more than ever, New Zealand needs smarter farmers, not fewer farmers.
Another benefit of training is staff retention, as training opportunities increase team member motivation.
The real worry for our industry is that, even in good times, our attitudes towards training vary wildly. Our research shows that 25% of farmers are enthusiastic about training and it is no accident that these are our top-performing farms. Year after year award-winners in farming come from farms where there is a strong training culture in place.
A further 50% of our farmers are neutral about the value of training. They still need to be convinced. They still view training as good for the industry rather than being good for their business.
The final 25% completely fail to see how training can help their businesses become more profitable.
I’m making it my mission to address these negative attitudes and to show people how Agriculture ITO training has one over-riding purpose – to help businesses farm more productively. Every course, every qualification, every assessment is based on a practical, ‘can-do’ approach, involving skills that can be immediately applied on the farm.
We’re talked to farmers the length and breadth of the country and their experience and needs have shaped our training system. What is more, Agriculture ITO training represents incredibly good value. It is a not-for-profit organisation which is heavily subsidised by major industry players. Why? Because stakeholders know that training isn’t luxury for good times, it’s essential all of the time. Without quality people, you won’t get quality export products.
Finally, a little perspective is called for. The New Zealand agriculture industry is in good heart. It still accounts for 64% of everything New Zealand sells, and $25 billion of exports annually. Although export prices are volatile and subject to currency fluctuations, demand for New Zealand’s primary produce remains very strong and even in a global down-turn, long-term prospects for growth are positive.
The only thing that will jeopardise our recovery is short-term thinking. If we drain the talent pool, if we do nothing to upskill those who remain, we really will be shooting ourselves in the foot.
It’s our skills and knowledge that will see us through, and having the confidence to back our staff on farm.