Growers still under the pump

The pictures of silt covered orchards may no longer dominate the 6 o’clock News, but for those affected – the growers, their employees and their whanau – the aftereffects of Cyclone Gabrielle still hit hard and will continue to hit hard for several years. 

Many growers still do not know the timeframe for getting their land back into production or the next crop to market. Northland, Bay of Plenty, Tairawhiti and Hawkes Bay are the fruit bowl of New Zealand for good reason. Their soil is, or at least was, rich with the necessary nutrients to support the nearly $7 billion New Zealand horticulture industry.

However, silt has not only destroyed the plants that were growing on that land when the cyclone struck, it has suffocated the soil structures which means many crops may never be able to be grown on this land again. Experts predict it will take 50 to 100 years to get the soil back to what it was.

To add insult to injury, the minimum wage increased on 1 April, and a 10 percent increase is scheduled on top of that for the Recognised Seasonal Employer (RSE) scheme  - effective 1 October. All this has come at a time when growers are already under immense pressure. RSE workers, who have come here every season for the past 15 years from our Pacific neighbours, fill shortfalls in domestic employment and help keep our successful horticulture industry alive.

Growers affected by Cyclone Gabrielle are grateful for the Government’s financial support, but one-off grants or loans only offer temporary relief.  

Price takers

Approximately one-third of our horticulture yield is sold domestically. The rest is exported. Internationally, we are price takers meaning we can only get the price the world market sets. Domestically, where they can, growers will need to factor into their prices the increased cost of production. This will put further inflationary pressure on households when they can least afford it.

I have spoken with growers who are contemplating their future in a post-Gabrielle world. The latest round of wage cost increases is likely to mean they either do not rebuild and replant, or if they do it, it will be on a reduced scale.

This is not about wanting to pay RSE workers less. They are an important part of the ecosystem, not only in our domestic economy but for the Pacific Islands, where the money they earn in New Zealand provides an important lifeline.

The RSE scheme is not perfect – no scheme is. There are a few bad actors, which is why the horticulture and viticulture industries are working closely with the Government and the Pacific on a review to address the issues.

The forced increase in RSE wages will hurt the good actors – by far the majority – the most. These are the growers who have already invested significantly in their RSE workforce. They travel to the Pacific Island communities from where their workers come, to nurture long lasting and trusted relationships. They build practical and culturally appropriate accommodation for the workers when they are in New Zealand. It is their slimmer margins that cannot sustain an inflexible wage environment.

The horticulture industry is not asking for special favours. We are just asking for the opportunity to get ourselves back on the trajectory we were on before the myriad of extreme weather events.

Paying workers from overseas more

It is always challenging when the Government forces employers to pay workers from overseas more than they would pay New Zealanders for the same work.

The cyclone-affected horticulture industry is facing increased costs across almost every aspect of growing. Insurance helps, but it doesn’t cover everything. It doesn’t provide for increased supply chain costs because it is now harder to get produce to market. It doesn’t accommodate additional employee flexibility because they need to be able to clean and rebuild their own homes.

Our industry is closely working with the Government to collect information on the extent of the devastation: what has been affected, what is needed to rebuild and how long this will take. The Government has stated it is committed to the rebuild but announcements like the minimum and RSE wage increases undermine this commitment. The Government may have delayed the additional 10 percent increase for RSE workers by six months, but we are two months post-Cyclone Gabrielle now, and affected growers still have no certainty around where they can even begin to rebuild, let alone how.

In the immediate aftermath, local communities were deeply grateful for RSE workers’ support for cleaning up orchards and homes. But these RSE workers rely on there being a vibrant horticulture industry for them to participate in, year in and year out. 

The Government needs to support the horticulture industry to ensure there are jobs for these vitally important employees to return to next season.