Professional Documents
Culture Documents
PREFACE
The Food and Beverage Skills Working Group was established to support the Food and Beverage Taskforce. Members of the
Group are as follows:
NAME ORGANISATION
Carol Beaumont (co-chair)
Department of Labour
Peter Harris
Taskforce Secretariat
Alison Quesnel
Blackmores Ltd
Carl Ammon
James Ritchie
Jo Wills/Nick Brownsword
Jo Sceats
Department of Labour
Barbara Johnsen
Carolyn Holmes
Ministry of Education
Peter Ettema
Kay Nelson
Contributors to the skills and training workshops included the Agriculture Industry Training Organisation, Competenz,
Lincoln University, AgResearch, Horticulture Industry Training Organisation, the Tertiary Education Commission, the
Department of Labour, New Zealand Trade and Enterprise, the New Zealand Council of Trade Unions, Business New Zealand,
and the Beer, Wine and Spirits Council of New Zealand.
The Skills Working Group would like to acknowledge Jo Sceats from the Department of Labour for preparing this report
on its behalf.
ISBN 0-478-28065-3
CONTENTS
PREFACE
CONTENTS
CHAIRS LETTER
EXECUTIVE SUMMARY
Implementation
INTRODUCTION
10
15
Background
15
Transformation Theme
16
16
22
22
22
1.2 Productivity
26
31
36
36
36
37
38
3. Attractive Careers
41
41
42
44
47
49
CHAIRS LETTER
Mr Tony Nowell
Chairman
Food and Beverage Taskforce
WELLINGTON
Dear Tony,
The Skills Working Group strongly supports the transformation theme (i.e. towards a high skill, high wage and high value
economy) for the food and beverage sector. While it is possible to win new international markets and develop innovative
products and services, it will be difficult to achieve this without the right skills, in the right place at the right time, being
applied in productive, high quality workplaces.
If the food and beverage sector in New Zealand (20% of the total New Zealand workforce) attracts and develops its
workforce effectively, this will make a major contribution to the governments economic transformation agenda. The
benefits it will provide for the New Zealand economy include spin-off effects for other related sectors such as health,
hospitality and tourism.
There are significant labour market opportunities for the food and beverage sector that the Food and Beverage Taskforce
could consider, such as:
supporting improvements in business productivity;
improving science and technology adoption practices;
applying a forecasting framework for sustainable labour to better manage turnover;
increasing integration of foundation skills into education and training provision;
increasing support and encouragement for the uptake of relevant vocational qualifications (including higher
level qualifications) that provide a good match to associated job opportunities;
increasing collaboration among Industry Training Organisations (ITOs), Tertiary Education Institutions (TEIs) and
government agencies;
improving planning and resource utilisation for training investment;
implementing strategies to address genuine skill shortages and recruitment and retention difficulties;
improving career development, employment opportunities and employment security; and
continuing and extending active support for alternative employment, preferably in the food and beverage sector,
with tailored programmes for individual workers and investment in education and training for employees affected by
business closures, downsizing and relocations. This would involve working with employers, unions, ITOs, other education
providers and agencies of government and local government.
A number of these opportunities were identified during the taskforce consultation process and have been reflected in the
Skills Action Plan for the food and beverage sector.
Given the momentum that has built up around the food and beverage sector engagement, it would be beneficial for the
sector if key stakeholders continue to have strategic dialogue in support of implementing agreed initiatives in the Skills
Action Plan.
The Skills Working Group therefore supports an ongoing food and beverage sector organisation to oversee implementation
of the Food and Beverage Sector Development Agenda. This organisation would actively lead transformation throughout
the sector; connect with other related sectors; and gain sector buy-in to own and maintain transformation in future years.
It is proposed that a new industry-led group be established called the Skills and Training Action Group (STAG) that will
consist of the relevant education and training organisations, industry and government agencies. This group would oversee
implementation of the Skills Action Plan within the context of the Food and Beverage Sector Development Agenda. The
scope of the group would include collaboration among food and beverage education and training providers to achieve more
focused provision; improve the level of knowledge about the workforce in the food and beverage sector (eg. forecasting
and areas of short supply and high demand); encourage workplace best practice initiatives (eg. productivity and foundation
learning) and increase alignment between provision of food and beverage qualifications and actual job opportunities within
the sector.
In addition to STAG, a tripartite initiative, based in the New Zealand Council of Trade Unions, is proposed. This would
establish a workforce centre of excellence for the food and beverage sector. The centre would promote worker
engagement and commitment to deliver the Food and Beverage Taskforce Development Agenda. The Skills Working
Group supports this proposal and the opportunity for STAG to both inform and be informed by the centre.
In the meantime, the Skills Working Group will continue meeting over the next few months to monitor three remaining
major projects (ie. the productivity study, the science and technology adoption research, and the career-of-choice stocktake). A progress report will be provided against the Skills Action Plan once the three major projects have been completed
and STAG has been established and operational for at least three months. The report will also include an outline of how
implementation of the Skills Action Plan will be monitored going forward.
The group has identified key skills and training issues for the food and beverage sector ways to lift its performance and
increase value. We commend the Skills Action Plan to the Taskforce.
Carol Beaumont
Alison Dalziel
Department of Labour
EXECUTIVE SUMMARY
Forecasting
The food and beverage forecasting framework will be implemented and applied to all food and beverage
sub-sectors and maintained on an ongoing basis. This would involve food and beverage ITOs (as part of their
strategic skills leadership role) to assist in the implementation of the framework in conjunction with other
relevant organisations.
The proposed Skills and Training Action Group (STAG) will guide consistency of application of this framework
within the food and beverage sector, improve the framework and test its robustness with respective industry
organisations and training organisations.
Productivity
Complete the productivity study currently underway, which will identify productivity issues specific to food
processing businesses.
The New Zealand Council of Trade Unions will use the findings of the productivity study to inform the Workplace
Productivity Education Programme and in developing resources for union delegates and future productivity
initiatives.
A first phase of science and technology adoption research has been completed. The findings will be taken
forward with industry and relevant agencies.
Skill Shortages
Information has been gathered for the Skills Working Group on genuine skill shortages and recruitment and
retention difficulties for bakers, butchers, chefs, dairy farmers and dairy farm workers, and food technologists.
Appendix two outlines ways to address these issues. The Skills Working Group will consider how to best promote
these solutions.
Efforts will continue to improve the quality of labour market information about skill shortages in the food and
beverage sector to better inform tertiary education and training strategies and priorities.
Workplace Practices
Promote and explore industry best practice and incentives in relation to skills development.
Increase employee participation in training and support for the Council of Trade Unions Learning
Representatives Scheme.
Communicate the relationship between high levels of foundation skills in food and beverage businesses and
favourable productivity results.
Increase support and encouragement for the uptake of relevant vocational qualifications (inclusive of higher
level qualifications) that provide a good match to associated job opportunities.
Continue and extend active support for alternative employment (preferably in the food and beverage sector)
with tailored programmes for individual workers and investment in education and training for employees
affected by business closures, downsizing and relocations. This would involve working with employers, unions,
ITOs, other education providers and agencies of government and local government.
PhD Integration
The Science and Technology Adoption project has considered the impact of the presence or absence of PhD
students (or such qualified staff), on businesses ability to adopt science and technology.
going forward.
IMPLEMENTATION
A new industryled group called the Food and Beverage
Skills and Training Action Group (STAG) is proposed to
Action Plan.
partnership)
INTRODUCTION
Background
Food and beverage is one of the sectors identified under
OUTCOMES SOUGHT
Current and prospective employees view the sector as a career destination of choice.
Employers are able to attract sufficient numbers of suitably skilled and motivated employees to meet labour
supply needs of an expanding and diversifying sector.
Employers and employees are able to innovate in the sector and achieve high performing labour and skills
sytems.
WORK PROGRAMME
Priority 1: Better Labour Market Information
Forcasting framework, productivity study, science and technology adoption research and skill shortage
assessments.
Priority 2: More Strategic Investment in Training
Skills and training (workplace practices, community awareness, changing occupations, quality and relevance).
Priority 3: Attractive Careers
High quality workplaces and careers opportunities
Integration of PhD students into food and beverage companies
10
Scope
This has meant a focus on certain food and beverage subsectors as defined in Appendix 1: Australia and New Zealand
Primary
Producer
Food and
Beverage
Manufacturing
Food and
Beverage
Wholesalling
Food and
Beverage
Retailer
Consumer/
Customer
Food Service
import
export
World Market
11
businesses, includes:
Tertiary reforms.
12
In implementing the strategy, the governance group of industry and agencies has amalgamated objective four
and five so that there are four sub-groups.
Objective three is critical for the strategy. Horticulture New Zealand, Ministry of Agriculture and Forestry (MAF),
Department of Labour and the Ministry of Social Development (MSD) are working on a forecasting tool that was
initially developed by BERL last year. The tool uses labour ratios and production data to estimate demand, but there
is very little helpful data available on supply.
This is particularly difficult in this sector because of the large number of illegal workers, and the seasonality of
the work which means census data may not be fully representative. Sub-group three has a project to adjust the
ratios used and check the production data region by region with industry. It will develop a means of estimating
labour supply sources and numbers. The latter will require creative research techniques and the active cooperation
of industry. Without sound numbers, the MSD and the Department of Labour have difficulty in recommending
immigration or Work and Income responses, and the governance group will not be able to influence the allocation of
education and training resource.
Developing a productive and skilled workforce is the solution needed for the annual crisis in grapes, apples and
kiwifruit industries. The fewer the numbers needed to work, the greater the chance that they can be effectively
allocated, paid well and have better career prospects. Moving to a situation with fewer more productive, and better
paid workers (current turnover approx. 300% a season) will assist in improving grower returns.
13
This requires a national means of easing allocation problems; hence the development of a harvest trail under
the strategy, and the establishment of a national system of seasonal coordinators. This has already assisted in
attracting workers to the areas of need. Training schemes are being developed in Bay of Plenty for managers,
picking staff in Hawkes Bay and for contractor employers in Marlborough.
Sub-group four is coordinating and encouraging these developments. Conversations with regional offices of the
TEC and polytechnics are beginning. First steps are also being directed at basic compliance issues. The work takes
time, and requires national and regional effort.
The systems to manage this work need further development. This includes generating a response from government
and industry, but at a regional and national level the resources and relationships needed to bring about change are
yet to be generated.
14
Background
Recent New Zealand economic growth (across all sectors)
has been driven by rising employment, with 260,000 more
people entering the workforce over the past five years.
While the numbers of people entering the workforce have
increased, labour force growth has been in decline. This
means that industries are now struggling to recruit skilled
staff and the international market for adequately qualified
staff and skilled staff is increasingly competitive.
New Zealand currently has the highest skill shortages
in more than 30 years. Some of these shortages are
apparent within the food and beverage sector (eg. chefs,
bakers and food technologists).
Over the next 15 years, key factors that will impact the
food and beverage sector, (and other sectors of the
economy) include:
Movement of significant population cohorts (baby
blip and baby boomers) into, through and out of the
workforce.
Continuing globalisation, both the movement of work
and workers internationally.
Changing skill requirements and the need to address
the educational underachievement of many New
Zealanders (particularly Maori and Pacific Islands
people).
The evolving nature of work, including a greater variety
of employment arrangements, management styles and
workplace cultures and a more diverse workforce.
The accelerating pace of technological change
and innovation and the impact this will have on the
structure of industries and occupations.
Changing aspirations, including relative value placed
on work, family, and community commitments.
15
action by businesses
and individuals
high productivity
aligning activities and
programmes
Figure 1: Transformation Theme. Source: Better Work, Working Better, Department of Labour.
TRANSFORMATION THEME
16
Source: Statistics New Zealand Population Estimates March 31 2005. Statistics New
Zealand Business Demographics February 2005 (wage and salary earners only).
Source: Household Labour Force Survey Income Supplement June Quarter 2004 (wage and salary earners only).
17
18
19
PERCENTAGE OF SELECT FOOD OCCUPATIONS WORKING 50 OR MORE HOURS PER WEEK, MARCH 2001
20
workforce.
2. Food and Beverage Sector Taskforce (2005) Discussion Paper on New Zealands Food
and Beverage Sector, Wellington, New Zealand, <http://www.nzte.govt.nz/common/
files/fbtaskforce-discussion.pdf>.
21
Background
Action Points
organisations.
22
Inputs
Outputs
Types of Decisions
Recruitment
Immigration
Tertiary education
Benchmark historical
data (Census,
(ie. Labour
Business Directory,
requirements by
ITO data)
occupation and
Exogenous
production volume
forecasts (wine &
Forecasting
Framework
Application
dairy industry)
Default scenario
qualifications)
and training
Alternate scenario 1
Wages
Alternate scenario 2
Career promotion
Capital investment
Parameters (eg.
value added in the
and use of
production chain,
technology
labour turnover,
labour productivity,
fulltime/part time)
Stakeholder
interviews
consideration.
23
RESOURCES
Pasture
Farm
equipment,
supplies,
genetics,
etc
Livestock
30,580
Milk
20,310
Grains
490
50,890
Primary
30,440
Meat wholesaling
1,920
Dairy processing
9,650
Dairy wholesaling
1,250
RETAIL &
FOOD SERVICE
350
26,340
Fruit & vege
Seafood
Support
functions
PRODUCTION
2,190
25,850
2,190
Beverage manufacturing
6,010
Beverage wholesaling
2,740
Seafood processing
5,980
Seafood wholesaling
560
7,410
15,110
158,270
Education, Recruiting & Human Resources; Logistics and Distribution; Market Research, Advertising and Design,
Research and Development, Information Systems; Packaging; Finance, Banking and Insurance.
Source: Model adapted from Coriolis, Employment Data from Statistics New Zealand
24
than 5,000 FTEs (or by 9%) between 2001 and 2005 and
(2005-10).
3. BERL have used the following components of the value chain; paddock, process, wholesale,
retail and retail service.
25
1.2 Productivity
Action Points
processing businesses.
Background
occupations.
26
Source: Organisation for Economic Cooperation and Development (2005). International Comparisons of
labour productivity levels estimates for 2004, September 2005, OECD estimates. Paris, France.
27
LABOUR PRODUCTIVITY
New Zealand now has more people working but for longer
hours than most other OECD countries - 21% of New
Zealanders work 50 or more hours per week, second to
Organising work
is intended to:
28
29
adoption rates.
30
Background
export markets.
31
each sub sector within the wider food and beverage sector.
Industry growth
DEMAND/OPPORTUNITIES
Imbalance = shortage
BALANCE
Fill rate
Advertised vacancy growth
Wage trends
SUPPLY OF OCCUPATION
MIGRATION
Members of the occupation
leave and enter NZ.
RETIREMENT
OCCUPATIONAL DETACHMENT
Members of the occupation
leave and re-enter the
occupation.
SUPPLY/CAPACITY
5. There are two types of skill shortage: 1) Genuine skill shortage - when employers have difficulties filling job vacancies because there are not enough individuals with the required skills
in the potential labour market to fill the positions on offer; and 2) Recruitment and retention difficulty - when there is a considerable supply of individuals with the required skills in
the potential labour market, but they are unwilling to take up employment at current levels of remuneration and conditions of employment.
32
industries.
technologists.
6. It should be noted that there are many terms used for production manager such as
site, plant, logistics or procurement manager, hence it is possible that not all data
relating to production manager has been captured. Also note that anecdotal evidence
suggests most production managers come about through promotion rather than by
acquiring a relevant qualification. This is an example of where industry training levels
may need to be increased above level four.
33
Fill rate
Retirement Vacancy
rate
growth rate
Training
rate
Wage rate
Genuine skill
shortage
Recruitment &
retention difficulty
Production Manager
0.9%
-36%
$39.87
Probably not
Probably not
Sales/Marketing Manager
0.6%
7%
$52.06
Probably
Probably not
Food Technologist
0.9%
37%
$28.56
Possibly
Possibly
Chef
51%
4.1%
0.3%
14%
$15.18
Yes
Yes
Dairy Farmer/
Dairy Farm worker
1.7%
17%
$18.07
Yes
Yes
Electrician
30%
2.6%
1.1%
-10%
$23.89
Yes
No
27%
3.0%
1.5%
3%
$22.86
Yes
No
Butcher
62%
1.9%
1.0%
38%
$16.12
Yes
Yes
Baker
37%
1.2%
0.6%
24%
$17.07
Yes
Yes
Male
(%)
Female
(%)
NonPakeha
(%)
Age
(15-29)
Age
(30-49)
Age
(50+)
School
(%)
Post
School
(%)
Degree or
Higher (%)
Production Manager
86
14
13
13
64
23
54
34
13
46
Sales/Marketing Manager
67
33
18
64
17
54
24
22
42
Chemical Engineer
67
33
17
26
55
19
23
25
51
20
Chef
64
36
34
50
43
58
39
24
66
34
22
54
25
74
22
64
Electrician
99
10
25
53
22
24
75
22
100
11
20
56
25
41
58
24
Butcher
96
25
34
43
23
70
29
28
Baker
70
30
34
42
45
13
78
20
22
Occupation
>50hrs
per week
34
35
Background
- Discussion Paper.
Workplace practices.
Community awareness.
Responding to changing occupations and skill needs.
Quality and relevance.
Action Points
Develop learning resource materials for curriculum
in primary and secondary schools that reflect the
importance of the food and beverage sector as a major
employer and contributor to New Zealands economy.
36
Background
Background
and career paths are changing (ie. from low to high value
focus of this area in priority two is the way the primary and
leadership role.
Background
There is a need for the quality and relevance of education/
training provision at all levels and by all providers to be
better aligned to the needs of industry and reflective of
changing occupations. It is critical that the resourcing
of education and training for people already employed in
New Zealand industries (including the food and beverage
industries) as well as those undertaking full-time or preemployment tertiary education, is allocated in a manner
that is strongly linked to appropriate tertiary education
strategies and priorities (ie. investment in highly relevant
qualifications). There is an opportunity for greater
partnering of TEIs and ITOs to meet changing skill needs,
and for more involvement of ITOs and industry in funding
processes and priority setting.
38
areas.
There is a need for fund allocation to be:
Targeted in a manner that rewards high performing
education/training provision and best practice.
That provides incentives for centres of excellence in
areas of potential growth in the economy.
Encourages collaboration of various providers to
reduce duplication of provision.
subject areas.
Note: 30 detail subject categories from the New Zealand Standard Classification
of Educational Qualifications (NZSCED) were included in the TEC analysis of food and
beverage sector-related tertiary education and training.
39
four years.
An example of how the seafood industry has sought to better align with education provision is outlined below:
The seafood industry, working with its ITO, has developed strong workplace-based training at levels 1-4 and
recognises the need for full tertiary education pathways. In the Nelson Marlborough region, local aquaculture
companies are working with Queen Charlotte College to run aquaculture courses at years 11, 12 and 13, which
include the opportunity for students to gain the Level 2 National Certificate in Aquaculture.
At the higher end of tertiary education, the Nelson Marlborough Seafood Industry Cluster is partnering with
TEIs in two TEC-funded projects to develop seafood-relevant curriculum at levels 5-9. Working with the
Nelson Marlborough Institute of Technology and Canterbury and Otago universities, the cluster aims to have
undergraduate and post-graduate diploma and degree programmes developed that will be directly relevant
to the industry. The cluster and universities are also working to improve opportunities for post-graduate student
research with the seafood industry.
40
3. Attractive Careers
Action Points
Background
Some parts of the food and beverage sector are not seeing
traditional occupations.
7. Note that this initiative is aligned to the Markets Working Group recommendation
about building business capability.
41
Action Points
The Science and Technology Adoption project has
considered the impact of the presence or absence of
PhD students (or such qualified staff), on businesses
Background
At the 17 November 2005 Food and Beverage Taskforce
meeting, it was noted that there was an opportunity
for greater integration of higher education PhDs within
companies. While a long term approach may be necessary,
it would be a good way for companies to increase their
focus on research and commercialisation opportunities.
If the sector wants to attract more PhDs and people
with higher level qualifications, it needs to become more
competitive in the labour market, have a stronger focus on
research and development and reward research initiatives
that contribute toward companies commercialisation
opportunities. It needs to be considered whether there
is sufficient supply of PhDs and those with higher level
qualifications relevant to the food and beverage sector,
and whether the sector understands the value of PhDs
and actively recruits them.
42
43
APPENDIX 1
A011
Plant Nurseries
A0112
A0113
Vegetable Growing
A0114
Grape Growing
A0115
A0116
A0117
A0119
Fruit Growing
A012
A0121
Grain Growing
A0122
A0123
A0124
Sheep Farming
A0125
A013
A014
Poultry Farming
A0141
A0142
A015
A0151
Pig Farming
A0152
Horse Farming
A0153
Deer Farming
A0159
Livestock Farming
A016
44
A021
Shearing Services
A0213
A0219
Services to Agriculture
A022
Services to Agriculture
A0212
A0220
A041
Marine Fishing
A0411
A0412
Prawn Fishing
A0413
Finfish Trawling
A0414
Squid Jigging
A0415
Line Fishing
A0419
Marine Fishing
A042
Aquaculture
A0420
Aquaculture
C Manufacturing
C211
Meat Processing
C2112
Poultry Processing
C2113
C212
C2121
C2122
C2129
C213
C214
45
C215
C2151
C2152
C216
C2161
Bread Manufacturing
C2162
C2163
Biscuit Manufacturing
C217
C2171
Sugar Manufacturing
C2172
Confectionery Manufacturing
C2173
Seafood Processing
C2174
C2179
Food Manufacturing
C218
C2181
C2182
C2183
Wine Manufacturing
C2184
Spirit Manufacturing
C219
46
APPENDIX 2
Chef
Baker
Electrician
Butcher
Food technologist
Baker
Electrician
Butcher
Food technologist
Dairy farmer/
dairy farm worker
Dairy farmer/
Baker
Electrician
Butcher
Food technologist
Butcher
Baker
Food technologist
Dairy farmer/
47
to encourage retention.
Chef
Butcher
Baker
Dairy farmer/
Chef
Butcher
Baker
Food technologist
Chef
Electrician
Butcher
Baker
Dairy farmer/
Sales/marketing manager
48
51%
30%
27%
62%
37%
Food technologist9
Chef
Electrician
Butcher
Baker
12213
12241
21461
51221
61211
71311
72231
74111
74121
Fill rate
1
(2005)
APPENDIX 3
49
0.9%
0.3%
1.7%
1.1%
1.5%
1.0%
0.6%
4.1%
2.6%
3.0%
1.9%
1.2%
0.6%
0.9%
Retirement
3
rate
Training
rate
2
(2005)
1.6
10.9
30.5
13.9
5.8
4.1
4.3
14%
17%
-10%
3%
38%
24%
19.5
7%
37%
12.1
-36%
149
42
213
306
604
2384
101
621
213
3.5%
1..0%
3.7%
2.2%
2.0%
21.9%
3.2%
3.2%
1.8%
$17.07
$16.12
$22.86
$23.89
$ 18.07
$15.18
$28.56
$52.06
$39.87
Approvals
Average
as % of
hourly wage
7
employment
rate
0.6%
0.8%
1.8%
2.2%
5.1%
1.1%
4.1%
2.1%
Annual
growth in
real wages
8
(2002-2005)
Yes
Yes
Yes
Yes
Yes
Yes
Possibly
Probably
Probably not
Genuine
skill
shortage
Yes
Yes
No
No
Yes
Yes
Possibly
Probably not
Probably not
Recruitment
& retention
difficulty
7. Statistics New Zealand, Labour Cost Index, except Food Technologist which was
measured in the New Zealand Survey of Food Technologists, Department of Labour.
At December 2005.
8. Statistics New Zealand, Labour Cost Index.
9. Data for Chemical Engineer (the occupational category into which Food Technologists
are included) are provided for the following fields: Retirement Rate, Growth in
Vacancies, Employment, Work Permit Approvals, Approvals as percentage of
Employment.
Information sources included Immigration New Zealand (approvals for Skilled Migrant
Category and the General Skills category for 2003/04 and 2004/05), Statistics New
Zealand Census of Population and Dwellings 2001, Australia and New Zealand Standard
Industrial Classification (ANZSIC) 1996 and the New Zealand Standard Classification of
Occupations (NZSCO). A combined baseline scan of both sets of immigration and census
data resulted in a preliminary list of occupations that was then refined and revised by
the Skill Working Group.
No
Probably not
Possibly not
Yes
Probably
50
51
DOL10230 AUG 06