New Zealand Government declares kiwifruit industry labour shortage

The New Zealand Ministry of Social Development (MSD) has declared a labour shortage in the Bay of Plenty–an important kiwifruit growing region.

The Bay of Plenty has entered its peak harvesting period, but according to the MSD, supported by the New Zealand Kiwifruit Growers Incorporated (NZKGI), a total of 1,200 vacancies need to be filled in order to meet growing demand for kiwis, especially from China.

NZKGI CEO Nikki Johnson said: “This year we have experienced the perfect storm of a larger harvest coupled with a deficit of backpacker and international student seasonal workers. We estimate that there are 1,200 vacancies currently available for picking and packing kiwifruit in the Bay of Plenty.”

Johnson added that the industry was working with the MSD to fill the vacant roles with domestic workers, but even New Zealanders on welfare benefits do not see the job as desirable.

Between January and April, MSD managed to place 1,032 job seekers into the kiwi industry but has not yet been able to fill all positions.

The declaration will reportedly allow overseas visitors who hold tourists visas to apply, varying the conditions of their visa for seasonal work in the Bay of Plenty.

According to figures, 120 million trays of kiwifruit were picked and packed last year, with this figure set to increase this year by 20%.

Johnson added: “Attracting New Zealanders to participate in the harvest is our first priority and over 60% of our seasonal workforce comes from New Zealand. However, during the peak of harvest, other sources of workers such as those from the Recognised Seasonal Employer (RSE) scheme and backpackers are required.

“The industry will be having a robust discussion with government around increasing the number of workers available under the RSE scheme as well as other avenues to meet demand during harvest.”

The NZKGI has forecast that the kiwifruit industry’s contribution to the Bay of Plenty GDP will rise by 135% by 2030 to NZD2.04bn, with 14,329 new workers being employed. Between 2015 and 2016, it contributed NZD876m and employed 10,762 full-time workers.

The last declaration of labour shortage for the kiwifruit industry was made in 2004 when the unemployment rate for the Bay of Plenty was 4.8%. The current unemployment rate stands at 5.1%.