The Central Otago economy is performing well despite the COVID-19 pandemic, but Council says there are still hurdles to overcome. 

Central Otago District Council Economic Development Manager Nick Lanham says the local economy is humming, while the horticulture sector has taken a hit and is still begging for desperately needed RSE workers. 

“Our economy is performing reasonably well and the level of unemployment within the district is significantly lower than in other parts of NZ,” Nick says. 

“Our horticulture sector in particular is still feeling the effects of the lack of a migrant workforce due to international travel restrictions. 

“The number of travellers in NZ on Working Holiday Visas are dwindling as these are individuals who arrived into New Zealand prior to lockdown.

“It has been 12 months of ‘all hands to the pump’ to attract staff into Central Otago, and I think the industry should be really proud of what it has managed to achieve against a bleak outlook. 

“The collaborative work to promote job opportunities in Central across New Zealand, the sharing and coordination of labour between growers, and the adoption of work practices or technology that have made roles more accessible, along with support from MSD and MPI and our community, have all contributed to the results to date. 

The Government has recently announced border exceptions for in a very limited capacity, and the horticulture industry is begging for RSE workers to be allowed in. 

“Looking ahead, the reality is that we don’t have a large resident population of people who are available for work in the horticulture sector, and with even fewer RSE and travellers in the country on working holiday visas, the horticulture sector could be facing an even tougher time for labour going forward,” Nick says. 

“There are employers in specific sectors that are actively recruiting for staff at the moment and struggling to fill roles in sectors such as construction, health care, and horticulture, including viticulture.

“The grape harvest is just coming to an end, and although lacking the usual number of staff, those involved have managed to get the harvest across the line.  

“This, I understand, was in part the result of a big recruitment drive early on amongst growers’ extended networks and the sharing of staff between vineyards.”

Apples are also currently being harvested and packed, and growers are operating with fewer staff than usual – work is available. 

“I understand some apple growers have decided not to pick some blocks of trees due to staff shortages, and are focussing on the most productive blocks,” Nick says. 

“There is a real concern around staff availability for pruning, which will begin in late May, as the cooler weather can often make it harder to recruit staff.

“I don’t have an estimate of the number of businesses currently experiencing labour shortages. However we have 270 businesses in Central Otago classified as Horticulture and Fruit growing

Nick says there isn’t any data available on the current estimate of how many workers the district needs. 

In terms of an estimated cost or damages of not having the required amount of workers, Nick says there is not a specific dollar figure for this. 

“It has been estimated that Horticulture (including viticulture) directly accounts for about 10% of Central Otago’s total economy, and being an exporter brings new money into our local and national economy. The industry also brings downstream economic benefits to our economy.”