Backpacker visa calls over-reach

The Avo Insider and its contents are a member-only service of Avocados Australia. You will not see these articles in the media or our other publications.

Well, ag labour is certainly a hot topic at the moment (and will continue to be so). First, the good news is the Australian Government has now committed to allowing the targeted recruitment of labour under the Pacific Labour Scheme and Seasonal Worker Programme, and as an industry we now have a general idea of our labour demand. Then of course, there have been the calls this month from the Retail Supply Chain Alliance (three unions), for working holiday maker visas to be scrapped.

And there have also been various pundits calling for an “ag conscription” for unemployed Australian jobseekers. Let’s address these issues one by one.

Labour in the avocado industry

Avocados Australia used various sources to compile data on the likely demand for labour in the avocado sector by region by month over the next 15 months. This data has been collated by Ernst and Young (now called simply “EY”) as part of a Hort Innovation project to get a national horticulture estimate of labour needs.

While there will be variation across different regions and different times of year, we estimate that in the larger growing regions (North Queensland, Central Queensland and Western Australia), the seasonal workforce is about 1,120 FTEs (full time equivalents). That’s based on the seasonal workers being 75% of the workforce.

While our response to the EY survey was focussed around harvest time periods, we utilised existing industry benchmarking data for all work – harvest, canopy management, tree injecting etc.

This data has been in demand from all levels of government, almost since the beginning of COVID-19, as we all grapple with the implications of ag’s reliance on seasonal workers, whether that’s avocado pickers or European header drivers or New Zealand shearers.

Seasonal workers

On that note, Avocados Australia definitely welcomes the news there will be a national plan to allow seasonal and Pacific workers to fill the void we currently have, across all industries.

According to Federal Agriculture Minister David Littleproud, with appropriate state and territory plans and quarantine arrangements in place, seasonal and Pacific workers can work safely in Australia.

However, as flagged by the Federal Minister, this plan does require state and territory plans. On 25 August, Western Australia’s Agriculture and Food Minister Alannah MacTeirnan told the ABC’s WA Country Hour the emphasis should be on training locals. And if that required farmers to pay more per hour, then that’s what would be needed, she said.

Working holiday makers

At the moment, the Federal Minister says 40% of working holiday makers have left Australia, and there are just 8,000 Pacific and Timorese workers in Australia.

So, let’s move onto the call for the scrapping of working holiday maker visas by the Australian Workers’ Union (AWU), the Shop Distributive and Allied Employees Association (SDA) and the Transport Workers’ Union (TWU).

Their argument is that axing the visa program will “stamp out widespread worker exploitation, industry lawlessness and provide more jobs for young people in regional and rural Australia”.

That’s a number of big calls. First of all, let’s agree that worker exploitation and ill-treatment should never be tolerated; everyone who works in agriculture deserves a safe workplace, and it’s up to all of us to provide that. The horticulture industry, in particular, continues to address these issues, particularly via the Fair Farms initiative.

And we know our members would like to be able to employ Australians, but it’s a little hard when the number of Australian applicants for seasonal roles in horticulture are regularly less than 10% of the total applicant numbers.

We all have our own personal experience of attempting to employ locals, and running up against either a lack of interest, or a lack of commitment by some. We understand there are bigger issues at play here. Seasonal work in horticulture is just that – seasonal and regional. We rely on a mobile workforce willing to travel from region to region, crop to crop and for people with families or commitments, that’s a big ask.

Are we overly reliant on working holiday makers who take up horticulture work not just for travelling money but also to secure additional time in Australia? Yes. But without them, some estimate we’d be short about 130,000 workers every year.

Forced labour

There has been some commentary that I would consider unhelpful, as well. In The Land of 20 August, 2020, the NSW Agriculture Minister Adam Marshall said “Australians are lazy and soft when it comes to this kind of work”.

Yes, field work is hard but no, Australians aren’t all lazy and soft, but that view has brought out the usual pundits who want those on unemployment benefits to be forced into agricultural labour. This is not the right path for horticulture, or agriculture generally.

We need a workforce that is motivated and willing and physically capable of doing the work, not forced, and not unhappy to find themselves in regional Australia. We’re producers, not babysitters, and an unwilling worker is a danger to themselves and others.

Why this sudden interest in getting Australians into ag?

On behalf of industry, Avocados Australia participates in a number of COVID-19 ag groups around the country. These groups regularly hear from the Australian Government’s agricultural liaisons and one message has been quite persistent: agriculture needs a Plan B, in case overseas workers are excluded from Australia for a long period.

This isn’t about those entering under the Pacific or Seasonal Worker programs. Since 2012, the Seasonal Worker Programme has allowed workers from the Pacific and Timor-Leste to take up 31,000 seasonal jobs in Australia.

Let’s compare that to the estimated 130,000 shortfall this year alone if every working holiday maker leaves. And let’s compare that to the reported 520,000 fewer payroll jobs in Single Touch Payroll-enabled businesses when comparing March 2020 and August 2020. And an unemployment rate that’s jumped from 5.2% in March to 7.5% in July (while there’s still JobKeeper securing some positions).

The Australian Government, like most other governments right now, has an employment problem. There are simply not enough jobs, there is a limited political appetite for continuing unemployment benefits to such a large number of people, and then there’s horticulture: looking for 130,000 seasonal workers.

It must seem like such an “easy” option, to divert the newly unemployed in metropolitan areas, regional centres or tourism hotspots into agriculture. The problem is, it’s not easy to ask people to relocate their lives for short-term work, it’s not easy to ask them to retrain for short-term work, and it’s not easy for them to become as skilled as those who have already spent time on the harvest trail.

What can we do

Avocados Australia is currently working on a strategy to attract workers to the avocado sector from a dwindling pool. This ranges from “selling” the location as well as the work, and other measures to highlight the positives of short-term, seasonal work. If you have had success with attracting and retaining a local workforce and would like to contribute, please contact our Communications Manager Lisa Yorkston on co@avocado.org.au or 07 3846 6566.

This article was produced for the August 2020 edition of the Avo Insider.

The future – our customers

The Avo Insider and its contents are a member-only service of Avocados Australia. You will not see these articles in the media or our other publications.

Anyone have a reliable crystal ball? Countries around the world are spending money on economic support measures (think JobKeeper and JobBuilder and probably a few more JobCatchPhrases) but the effectiveness remains to be seen. Data from the Australian Bureau of Statistics (ABS) shows that between mid-March and early May, there was a 7.3% decline in total payroll jobs. The ABS’ mid-April survey of household impacts found one-third of individuals reported a deterioration of their household finances for the previous month, and reported feelings of nervousness and restlessness. (Read the full ABS bulletin here.)

That’s not to say people weren’t spending money … according to the Fiftyfive5 consumer impact monitor for June (Hort Innovation project ST19031) spending on clothing was up 102% between March and June (we assume on comfy non-iron items), up 93% for hardware for home improvements, up 76% for gardening gear and up 53% on alcohol.

It is in this space that our current marketing campaign reinforcing how “avocados make everything better” is operating. Yes, there was a spike in cook-from-scratch across the country, but people are still concerned about what the future holds.

Please note, both reports mentioned above pre-date the lockdown of the greater Melbourne area, and the growing number of cases in New South Wales.

So, what about August? Well, according to the 10 August Fiftyfive5 report, concerns among consumers about health and wellbeing of family is growing. There’s been a renewed focus on physical and mental wellbeing and an increase in support for local businesses, including local and independent grocers.

But what about buying Australian grown? Has that continued? Not so much, it turns out. The Fifyfive5 report of 27 July found the patriotic message was waning. As an important driver for purchase, “buying Australian grown” was down significantly (down 9%) to its lowest point since March, while “supporting local farmers” was also down as a motivating message. Australians may be hearing these messages elsewhere and it may be time for a refresh of this narrative.

All of this at a point where the momentum for cooking at home is waning for those 35 years and above.

You can find the latest Fiftyfive5 reports here, and reports from Nielsen’s Harvest to Home here.

This article was produced for the August 2020 edition of the Avo Insider.

Biosecurity vital for horticulture

The Avo Insider and its contents are a member-only service of Avocados Australia. You will not see these articles in the media or our other publications.

In a very disappointing decision, the Australian Government has decided not to progress with the Onshore Biosecurity Levy, just as we have another confirmed incursion of varroa mite at the Port of Townsville. Most of the risks associated with biosecurity are created by the movement of people and goods into the country, and this levy would have helped protect an essential service, agriculture.

This levy, with its proposed $10.02 biosecurity charge per 20-foot container and a $1/tonne levy on bulk imports coming by sea, could have raised up to $325 million over three years.

It would be most appropriate for the creators of biosecurity risks to contribute to the cost of managing it. The proposed levy was very contentious amongst importers but surely there would be a way to make it work. I think it is very disappointing that the government seems to have just given up and put this in the too hard basket.

National Farmers’ Federation chief executive Tony Mahar said the decision to axe the levy was a “blow to Australia’s farmers”.

“The uncertainty this levy proposal has created — particularly given the current circumstances — is a poor look for government,” Mr Mahar said.

It’s a poor look indeed, as we all adjust to a COVID-19 world, the incursion of fall army worm and the discovery of a varroa mite on a hive of feral Asian honey bee at the Townsville port in April.

Avocados Australia is working with State and Commonwealth governments and other industries to address the Varroa mite incursion.

This is the third incursion in four years at the Port of Townsville. As well as eradicating the pest, more needs to be done to look at the incursion pathway and do something to stop the frequency of incursion.

This is not a situation to be taken lightly by anyone. While Asian honey bees can live with Varroa jacobsoni in their hives, they have recently been observed reproducing on European honey bees in some overseas locations. Of greater concern, is Varroa destructor which could also enter Australia with Asian honey bees. These tiny mites kill honey bee nests and hives. Given the importance of all our pollinators, this is a pest we do not want to have in Australia.

There is a need to strengthen our borders against invasive species, and given the Australian Government has just shelved plans to raise $325 million to this end, I’d like to know how this will happen.

You can read the Australian Government’s decision about the Onshore Biosecurity Levy here, and additional reaction from Australian agriculture via ABC Rural.

This article was produced for the May 2020 edition of the Avo Insider.

Quality, retail and marketing update

The Avo Insider and its contents are a member-only service of Avocados Australia. You will not see these articles in the media or our other publications.

Quality remains a priority for the industry, as the country slowly eases restrictions and food service options broaden, for both us as suppliers, and consumers in terms of dining options. Various pundits expect eating at home to remain strong, even as food service re-opens across the country.

Market conditions

With the onset of colder weather across the country, demand in the central markets remains slow and steady. We are well into the Hass season and we encourage growers to ensure quality and communication remain a priority for fruit heading to the central markets to assist achieve the best possible returns across the industry. Avocados Australia has compiled details on the Food Service State of Play outlining each state’s plans in terms of the easing of food service restrictions. In a recent Food Industry Foresight survey, the group published that around 40% of both restaurant and café operators believe they will not return to normal trading once lockdown is over, while around 30% believe they will. We encourage growers who are approaching their season to talk directly to their trading partners to understand the implications of the current state of play for food service, and work collaboratively to manage for the best possible outcomes.

Quality

Ensuring the best product quality to consumers remains both a priority to managing the current market climate, and increasing the demand of Australian avocados long-term. As part of the Avocado Supply Chain Feedback project (AV18000), a video has been created to provide an update on the project. As part of this project, 40 supply chains are examined and results illustrate that:

  • only 25% of supply chains are achieving Best Practice temperatures at pack shed departure
  • only 35% of the supply chain are achieving Best Practice temperatures during transport
  • only 30% of supply chains are achieving Best Practice temperatures during storage
  • 80% of supply chains are achieving Best Practice temperatures during ripening.

The Avocados Australia Best Practice Resource explains that effective precooling is essential for reliable transport of avocados from the packshed, to preserve postharvest quality and minimise mixed ripening in consignments. Furthermore, transport refrigeration systems are only effective at maintaining fruit temperature, they cannot be relied on to cool fruit. We encourage all industry members to utilise temperature loggers where possible to monitor temperature and manage the supply chain to ensure optimal quality for consumers.

Marketing program

In response to the unfolding COVID-19 situation, two priorities were identified for Australian Avocados with the aim to continue driving in-home consumption:

  1. ensuring consumers understand how and why avocados can positively benefit them and their health during this time
  2. educating consumers how to use avocados at home, varietal characteristics and the versatility of the product across a range of meal/occasions.

We thank those growers who contributed a video to the #smashanavoathome campaign and encourage growers to keep sharing; these videos have had more than 22,800 opportunities to see on Instagram stories, with a completion rate of 96%. On Australian Avocados Facebook, the Stories have had almost 4,000 unique opens (unique reach) and more than 150 engagements. Hort Innovation is currently assessing how they can continue to integrate growers into the avocado marketing program.

In addition to sharing these videos across Australian Avocados (consumer) and Avocados Australia (industry) social media, we have been working with Growcom to leverage this content and integrate these videos into their Eat Yourself to Health campaign, so expect to see these videos again here in the near future. Hort Innovation has also announced their The Good Mood Food campaign which will involve promoting Avocados and other fresh produce across media, digital and social marketing platforms.

In recent weeks, we have been able to work with the major retailers and Hort Innovation to launch the Hass season marketing program to align with the consumer offering on shelf. The launch of the Hass season has seen consumers welcome Hass back to the market and Australian Avocados offer inspiration on using avocados across a number of occasions such as this Smoked Salmon & Avocado on Toast, Guacamole and Taco Night. Hort Innovation is making progress on finalising the marketing program for June and beyond, which we hope to share with industry in the near future.

Supply dynamics

We were able to manage the transition from Shepard to Hass with retail partners well despite the uncertain times that we have recently experienced. Through the newly created Market Development Manager role, we hope to continue to work with retail partners to appropriately plan and manage the supply and demand of the category to ensure we are continuing to increase demand of Australian Avocados and ensure the best returns to the industry. If you would like to discuss this in further detail, please feel free to contact Hayleigh Dawson at mdm@avocado.org.au.

This article was produced for the May 2020 edition of the Avo Insider.

Welcome to a New Normal

The Avo Insider and its contents are a member-only service of Avocados Australia. You will not see these articles in the media or our other publications.

It’s been a big 2020. Droughts, fires, and a global pandemic. It’s safe to say, we’ve not experienced this in our lifetime, and certainly not in the life of the Australian avocado industry. Sure, there have been pandemics in recent memory (swine flu anyone?) but this one is changing our world in the same way the Spanish Flu changed things for an earlier generation. So, what does it mean?

As you will have seen from our industry-wide communications (it’s a pandemic after all), we have to change the way we operate our orchards, our packsheds and our offices (read our guide here), and it’s certainly changed things for some of our customers, food service in particular (read about that here). We’re learning from what’s happened in other industries (more here).

It’s been tough. We lost food service (an estimated 10-20% of our market), exports (up to 5%) and our retail consumers bought less avocados during the early stages of the pandemic, focussing instead on fresh produce with a longer shelf life. (And toilet paper, of course.)

Emerging issues

A lot of our earlier major concerns have been addressed (staff for those currently picking, safe operation of our orchards and packsheds) and we’re now looking further ahead. One key issue is going to be labour as we move out of the current regions and picking flows through across the coming year. At some point, the visa holders currently in the country will no doubt return home, and we anticipate some issues with replacing those numbers, depending on levels of government support and domestic unemployment figures.

We will be competing for labour with a range of other horticultural crops across the country, and within each state, if border restrictions continue to make travel challenging.

According to the most recent ABARES agricultural labour survey, contract labour made up 56% of the workforce for irrigated fruit and nut operations in 2018, and casual labour another 20%. In the same industries, a decent segment of the workforce were visa holders or contract labour of unknown backgrounds.

With regard to food service, obviously, the staged re-opening of food service means that portion of our market won’t return in one hit. This will have lingering implications for our industry.

Production

The upside is that production for the remainder of the year will be steady and slightly less than last year, so we won’t have the added pressure of additional supply this season. From the end of the calendar year, it is expected that supply will be very low, until the North Queensland season kicks in.

The question is, what will Chile do? Will they use this opportunity to get a foot in the door? Will an Australian importer see the opportunity to cash in on lower-cost fruit to fill the market?

Will New Zealand fill the hole? The recent forecast from New Zealand suggests that they are expecting a larger crop this year and will send more to Australia than last year. I think we would rather see more New Zealand fruit to fill the gap, than a new low-cost supplier entering the market.

This article was produced for the May 2020 edition of the Avo Insider.

Northern Territory – links to relevant resources

This article includes links to border closures & exemptions, health information, and workplace information for the Northern Territory.

Please visit our main (public) article for information on national measures.

For information on COVID safe plan requirements, visit the WHS module in the BPR here.

Health information

Workplace information

  • Does your state require a specific COVID-19 plan or for COVID-19 considerations to be built into your workplace health and safety planning? Click here to find out. There’s more available re border exemptions below.
  • NT WorkSafe
  • Labour – the NT Farmers has links for job services here
  • Developing a management plan to access border exemptions, click here
  • The Queensland Trucking Association is working with DRVR to provide free hygiene awareness training (online) for truck and delivery drivers: click here. And Transport Alliance Australia and DRVR are providing free training (online) for passenger transport drivers: click here.

 

South Australia – links to relevant resources

This article includes links to health information, financial assistance and workplace information for South Australia.

Please visit our main (public) article for information on national measures.

For information on COVID safe plan requirements, visit the WHS module in the BPR here.

Health information

Financial assistance

Other general government measures

  • <coming soon>

Workplace information

  • SafeWork South Australia
  • COVID-Safe workplace plan (A plan may not be mandatory for agriculture, but please check carefully.)
  • COVID-19 Employer guide – Business SA (Chamber of Commerce and Industry) (PDF link)
  • The SA Government has set up Seasonal Jobs SA, a portal for advertising seasonal work in the state.
  • The Queensland Trucking Association is working with DRVR to provide free hygiene awareness training (online) for truck and delivery drivers: click here. And Transport Alliance Australia and DRVR are providing free training (online) for passenger transport drivers: click here.

 

Tasmania – links to relevant resources

This article includes links to health and workplace information for Tasmania.

Please visit our main (public) article for information on national measures.

For information on COVID safe plan requirements, visit the WHS module in the BPR here.

 

Health information

Workplace information

Western Australia – links to relevant resources

This article includes links to recent updates, health information, financial assistance and workplace information for Western Australia.

Please visit our main (public) article for information on national measures.

For information on COVID safe plan requirements, visit the WHS module in the BPR here.

Recent Updates

  • WA’s Safe Transition Plan
    • WA’s Safe Transition Plan has been updated with a new hard border for approved travellers from Saturday 5 February, 2022.

Health information

Financial assistance

  • Business assistance – Department of Premier and Cabinet
  • Payroll tax relief – Department of Finance
  • Payroll tax employer guide (includes details of grant payments) – WA Government
  • WA announces JobKeeper flexibility (18 May 2020). The new General Order from the WA Industrial Relations Commission allows State system employers to temporarily alter hours/duties/locations, within specific requirements. State system employers and employees are those in businesses that operate as sole traders, unincorporated partnerships, and unincorporated trust arrangements. Some not-for-profit bodies and incorporated associations are also covered. Read more here.

Workplace information

  • Does your state require a specific COVID-19 plan or for COVID-19 considerations to be built into your workplace health and safety planning? Click here to find out. There’s also more about the WA requirements below.
  • Department of Mines, Industry Regulation and Safety
    • Diseases and health FAQs
    • Click here for information relevant to employers and employees in the WA state industrial relations system – sole traders, unincorporated partnerships, unincorporated trusts and some incorporated or not for profit organisations
    • Click here for employers and employers under the national system (Fair Work Ombudsman)
    • Click here for WorkSafe
  • Small Business Development Corporation
  • Labour availability
    • The WA Government has launched (27 March 2020) a service to link jobseekers with agriculture – Jobs in WA Food. This initiative exists to provide information only and is not a recruitment service. Links to recruitment services can be found here.
    • Information from the WA Government on Working Holiday Makers and your requirements as an employer can be found here.
    • Agricultural businesses employing Working Holiday Makers (WHM) must prepare a COVID-19 Health Management Plan as part of their occupational health and safety management responsibility.  Click here for more information.
  • The Queensland Trucking Association is working with DRVR to provide free hygiene awareness training (online) for truck and delivery drivers: click here. And Transport Alliance Australia and DRVR are providing free training (online) for passenger transport drivers: click here.

NSW – links to relevant resources

This article includes links to health and workplace information for New South Wales.

Please visit our main (public) article for information on national measures.

For information on COVID safe plan requirements, please visit the WHS module in the BPR here.

Agribusiness workers and the border

Click here to see the “ready reckoner” for agribusiness workers entering Queensland. PLEASE NOTE: Avocados Australia received this link on 10/8/2021 and it may be superseded. CLICK THE LINKS IN THE DOCUMENT TO CHECK or visit this webpage to check for the latest link.

The PDF (link above) includes information on permits, record keeping etc and provides information for the most common scenarios: farmers and workers moving only between Queensland and NSW in the border zone, freight & logistics operators, specialist workers, and other essential workers.

Health information

Workplace information