A new Central Otago labour market report shows the horticulture industry continuing to grow, whilst viticulture was slowing down.

The report by Thrive Consulting was commissioned by the Southern Labour Governance Group (SLGG), and highlighted the ongoing labour and accommodation shortages across both industries.

Horticulture was currently 1294 beds short in the peak summer season, while labour had increased from 3864 people in 2014/15 to an estimated 4883 workers needed in 2027.

Cherry plantings made up 54% of the total 2218ha of orchards throughout Central Otago, while viticulture’s 2163ha was expected to decrease slightly by 2027. However, there was only 1901ha of grape plantings back in 2014.

The report, based on surveys and interviews with horticulture and viticulture growers during September and October 2024, has been produced every three years since 2014.

SLGG chair Kris Robb said the report highlighted the challenges and opportunities for the sector, and was extremely relevant for current and future growers, for industry bodies and for the wider community.

The sector has been through a period of rapid growth in plantings over the last 10 years and has now entered a period of more modest growth, he said.

“There has been some rapid expansions going on and they are waiting to materialise, but now it’s plateaued out.”

Kris said the report was incredibly important to the future of the industry, and especially because of its reliance on labour - in some cases making up to 50% of an orchard’s costs.

Growers reported that increased costs were affecting viability of current operations and their plans for expansion.

“I’m happy to see the results show that growers have not only invested in plantings but also in the provision of staff accommodation to reduce the shortfall of accommodation, and the increased awareness around staff wellbeing and supporting students into seasonal work, which for some will be their first real taste of work,” he said.

In the past 12 months, a manaaki pastoral care group had been established in Central Otago, to help seasonal staff integrate into both work life and the wider community.

Central Otago Mayor Tamah Alley said she was impressed by the growing level of cooperation between the horticulture and viticulture sectors to share and utilise staff accommodation at different times of the year.

“Central Otago’s population is growing rapidly, and accommodation is a key issue for our district.

“It’s great to see the growth in accommodation provided by the industry over the last six years and see that industry is working together to create solutions.

“From a council point of view, we are very interested in this data.”

The report was funded jointly by the New Zealand Fruitgrowers Charitable Trust, Central Otago Fruitgrowers Association, Central Otago Wine Growers Association, Ministry of Social Development, Seasonal Solutions Cooperative Ltd, and the Ministry of Primary Industries.

The full report is available on the website: Horticulture & Viticulture Labour Market Report - Central Otago District Council