11 / INSIGHT
PHOTO BY INDUSTRIEBLICK
LABOUR MARKET REVIEW
Michal Slawski, development and marketing specialist at Bord Bia, disseminates the findings from the recent horticultural labour market review
B
ord Bia recently commissioned a review of labour in the horticulture industry. An initial review was completed in 2007 and updated in 2016. The labour review was updated to provide current estimates of the level of employment within horticulture, as well as the factors affecting employment. Information on the total scale of employment within horticulture, as well as all the subsectors, is important for planning purposes. The new survey also broadened out the scope of previous work, looking at some of the upstream and downstream industries that support horticulture and provide further employment. Finally, a value has been put on the contribution that horticultural employment makes to the local economy. In addition to desk research, a substantial number of interviews were also carried out across all sectors to provide a comprehensive picture of labour within the industry. Maintaining and developing both the domestic and export markets for horticultural produce is critical to expanding employment opportunities. While much of Ireland’s horticultural output is sold on the domestic market, the industry has also developed important export markets, particularly the UK for mushroom exports. Based on current available data, the industry employs over 6,600 staff at farmgate level and a further 11,000 in value added and
downstream activities. Farmgate horticultural employment is estimated to be worth €165m annually to the Irish economy, in the context of farmgate output valued at €424m. The review identified a number of key factors and challenges impacting on the labour area in feedback from the industry including changes to the minimum wage: increasing competition for staff as the economy grows; the uncertainty associated with Brexit; the need for ongoing investment in the sector in order to maintain competitiveness in the international marketplace; upskilling staff and the need to market the horticultural industry positively so as to encourage students (and new entrants) to consider horticulture as a career. Labour is a critical input for horticultural businesses and for some, labour costs can represent up to 50% of overall costs. Labour cost competitiveness and availability are common concerns for the industry. Against a backdrop of tightening business margins, especially where businesses are supplying the retail sector, future wage certainty is strategically important for horticultural businesses if they are to develop long term growth strategies. The recent volatility in euro/Sterling exchange rates is another major issue facing horticultural businesses.
“Labour is a critical input for horticultural businesses and for some, labour costs can represent up to 50% of overall costs” Spring 2017 / www.horticulture.ie / HORTICULTURECONNECTED
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