The role of the rural contractor in flexible labour use on South Island sheep and beef farms

Abstract

Despite its falling profile in agriculture, sheep and beef farming is still an important contributor to the New Zealand economy, exporting $12.5 billion worth of pastoral products to 102 countries (Davidson, 2007). Over the last 50 years there have been considerable changes in the farm labour mixes, particularly on sheep and beef farms. A combination of off-farm work, diversification on the farm and a steady fall in the number of permanent farm workers has resulted in an increasing array of tasks undertaken by rural contractors. There are rural contractors available to carry out almost any imaginable farm chore and their existence allows farmers to have a much more flexible approach to employing labour. Yet little is known about the rural contracting industry and little is also known about why some farmers make extensive use of contractors yet others make minimal use of them. This research project starts to fill this gap by providing an exploratory snapshot of the industry and its relationship to farmers within the South Island sheep and beef farming sector. A mixed methods approach has been used. A survey of members of the Rural Contractors New Zealand, the national organisation and leading advocate for rural contractors, was followed by a case study approach to explore the perceptions of and relationships between rural contractors and sheep and beef farmers. The results have been divided into three sections. One section considers the labour use on farms and the ability of farmers to gain numerical flexibility through the use of casual labour and contractors as there are increasing disincentives for employing permanent workers. Contractors are used for the skills they have gained through specialisation, the machinery and technology they can offer, and as a substitute for other labour. The ageing of farmers, the paucity of skilled farm employees and increasing pluriactivity all indicate that the contracting sector will grow in importance. The second section considers the environment in which contractors work. The availability of suitable labour, weather, competition, financial viability and health and safety are the major short term issues they face while their long term concerns revolve around the profile of their industry, increasing legislative requirements and the state of the economy. The third section considers the relationship between the two parties and finds there is a relatively harmonious relationship based on a development of trust between farmer and contractor. Contractors make a significant contribution to rural communities, by providing off-farm work and casual workers for the farming sector, and contributing to the economic and social health of local areas. Increasing farm productivity, and increasing farm accreditation requirements to meet the changing market demand for credence properties in agricultural products, are likely to require further input from the rural contracting industry in the future.