annual report 2008

AnnualReport

2008Partners in Productivity

What We DoAgriculture ITO provides leadership in skills and knowledge learning for the agriculture and water industries.

We are a non-profit organisation responsible for setting and maintaining standards of learning. We partner government, industry, and educational organisations to ensure New Zealands most important economic sectors have the people they need to stay world class.

We lead the development of learning programmes; arrange and monitor delivery and assessment; provide guidance and mentoring for employers and employees; and report on our activities to key stakeholders.

Funding for this work comes from the Tertiary Education Commission and the major industry groups DairyNZ and Meat and Wool New Zealand. We are also supported by the NZ Pork Industry Board, the Egg Producers Federation of New Zealand, PacificVet Ltd, the Poultry Industry Association of New Zealand, and the World Poultry Science Association. Their funds subsidise the cost of learning for people in their industries.

Key Outcomes for

2008Our learning programmes are designed to improve productivity in the workplace. Where possible, learning is assessed on the job so employers can see new skills are being applied, and the value of training to their business. We call it can-do learning.

Agriculture ITO dominates vocational training in agriculture, with 95% of all National Certificates in the sector awarded in Agriculture ITO qualifications.

2008 2007

National Certificates achieved 4,575 2,666

Credits 354,515 250,000

Skill hours 3.5 million 2.5 million

Modern Apprentices active at year end 503 517

Trainees in training with us 12,644 10,836

Employers with staff in training 5,476 4,082

Our qualifications are registered on the National Qualifications Framework, and graduates are issued certificates on completion of their programme. Assessment is based on standards which are assigned a credit value, reflecting the time a typical learner takes

to complete that learning. One credit equals 10 hours learning time.

Agriculture ITO qualifications require between 40 and 163 credits for completion.

Contents

2 Highlights for 2008

4 Agriculture ITO Directors

5 Chairmans Report

6 Vision Mission Values

7 Chief Executives Report

8 Balanced Scorecard

10 Leadership and Collaboration

11 Regional and Industry Committees

12 Strategic Relations

12 Agriculture Services Limited (ASL)

14 Dairy: Sector Outcomes

15 Dairy: Profile Lifting the Game

19 Sheep and Cattle: Sector Outcomes

20 Sheep and Cattle: Profile Flexible Training Proves a Winner

24 Other Industries: Sector Outcomes

26 Other Industries: Profile Delivering on Business Outcomes

28 Water: Sector Outcomes

29 Water: Profile Regeneration

31 Sustainability Report

32 Financial Performance

36 Industry Good

37 Agriculture ITO Staff 2008

38 Our Staff Organisational Structure

40 Our Staff Regional Field Team

1Agriculture ITO Annual Report 2008

We gratefully acknowledge the support of our funder industry bodies:

2 Agriculture ITO Annual Report 2008

934/1,079

Working with industry partners, we set targets and areas of focus in major sectors to ensure we are meeting industry needs.

Sector Trainees Credits Achieved Hours of Learning Completed Programmes*

2008 2007 2008 2007 2008 2007 2008 2007

Dairy 7,857 5,660 242,284 124,444 2,422,840 1,244,440 3198 928

Sheep and Cattle 934 1,079 26,483 29,640 264,830 296,400 386 349

Wool 1,624 1,814 40,754 49,563 407,540 495,630 943 832

Pork 78 82 1,889 2,837 18,890 28,370 12 13

Poultry 253 235 6,516 5,487 65,160 54,870 127 98

Rural Services 539 758 9,540 22,819 95,400 228,190 245 516

Water 870 823 22,906 18,659 229,060 186,590 229 167

Other 489 385 - - - - - -

Total 12,644 10,836 - - - - 5,339 3,119

870/823ArableArtificial InseminationDairyDeerGoatOtherPest ManagementPorkPoultryRural ServicingSeed DressingSheep and CattleWaterWool Harvesting

7,857/5,660

1,624/1,814

78/82

253/235539/75831/42

171/152

276/152

6/10

4/1

24/1513/13

Highlights for

2008Industry Sector Results Trainees by Industry 2008/2007

Finishing the Job

Completion rates are another key performance indicator for TEC and our funding organisations. We have measured completion rates as the number of terminated agreements with the reason given as Completed over the total number of terminations.

Agriculture ITO provides leadership on matters relating to skill and training in:

Agriculture including Arable Farming, Artificial Insemination, Dairy, Deer, Sheep, Cattle and Goat Farming, Pest Management, Pork, Poultry Production and Rural Services

Water Industry

Wool Harvesting

70%

60%

50%

40%

30%

20%

10%

0%Arable

45%

Artificial Insemination

23%

Dairy

38%

Other

24%

Pest Management

48%

Pork Poultry

66%

Rural Servicing

39%

Sheep and Cattle

27%

Water

42%

Wool Harvesting

65%

24%

*Includes Limited Credit Programmes that form part of a national qualification.


Following research and review of industry needs and learning behaviour for a qualifications review, a series of new learning programmes was developed from 2007. In that year, Milk Quality Stages 1 (Level 2) and 2 (Level 3) were introduced. In 2008, 24 qualifications and 432 unit standards were reviewed; reviews began on another 14 qualifications and 150 unit standards, and we began development on two new qualifications.

Training Agreements by Qualification Level

Nationwide Skill Development and Support

New learning programmes in 2008 saw significant uptake, and led to further training engagements.

3,830

5,070

1,119

1,538

2007

2008

New to Agriculture ITO (First time registered with us for training) Each silhouette represents 100 trainees/employers

Trainees Employers

Trainees by Ethnicity and Gender

72% European

24% Female

17% Maori

76% Male

19%

23%

1% Not Stated

8% Other

1% Pacific Islander 1%

9,153

3,026

2,167

9,618

127

TEC sets expectations that the demographic of our trainees will reflect that of industry participation.

Actual TEC Target

1,073

124

Agriculture ITO has 53 Training Advisers and Coordinators spread throughout the country, supported by office staff and Regional Committees in our 16 training regions.

New Learning Programmes and Resources Developed in 2008

We manage 60 qualifications and 831 unit standards in the following sectors: (qualifications/standards)

41/623 10/399/169

Agriculture Wool Water

11,00010,000

9,0008,0007,0006,0005,0004,0003,0002,0001,000

02008200720062005200420032002

Level 1 Level 2 Level 3 Level 4 Level 5

Trainees by Region as at 31 December 2008

350/191

485/227

481/218

429/213

635/318

198/113

264/147

322/165

222/115

278/124

603/313

465/228

561/325

1209/701

197/98

258/124

Trainees/Employers


Agriculture ITO

DirectorsTony Wilding (Chairman) Tony was elected Chair of the Board in 2002. He is a member of the Institute of Directors; deputy chair of the Pohlen Hospital Board; chairman of the Advisory Group to the Waikato Milking Robotics Project; director of Dairy Industry Superannuation and trustee of the Leukaemia & Blood Foundation. Tony was a previously a director of the NZ Dairy Board and NZ Dairy Group.

Cliff Tipler (Deputy Chairman) BE (Hons), BSc, MIPENZ A water and wastewater consulting engineer, Cliff joined the Board in 1999, representing the water industry. Cliff is a senior principal of URS New Zealand and director of Agriculture Services Ltd.

James Brownlie A member of the Institute of Directors and a former district councillor, James joined the Board in 2003. As a sheep and cattle farmer with several roles in East Coast Maori farming, he has had a long involvement in entry-level farm staff training.

Tanira Kingi PhD (ANU), MAppSc (Hons), BBS (AgrB) Tanira joined the Agriculture ITO Board in 1998. He is a member of the Institute of Directors; the Institute of Primary Industry Management; and the Institute of Agricultural and Horticultural Sciences. Tanira is a senior lecturer in Agricultural Systems and Management at Massey University; a Committee of Management member of Waerenga Incorporation and is affiliated to Te Arawa and Ngati Awa.

Don Seath Don joined the Board in 2000. He is a member of the Institute of Directors, chairman of the Industry Committee and former director of the NZ Dairy Group and Dairy Meats NZ Ltd.

Chris Kelly MVSc, MACVSc Chris is a member of the Massey University Council, former chairman of AgVax Developments Ltd and the chief executive of Landcorp Farming Ltd. He joined the Board in 2005.

Wayne McLaughlan Wayne joined the Board in 2006, representing employees working in the industries the ITO covers. He is a full-time union organiser with 28 years experience.

Murray Linton A Fonterra Shareholder Council member and Bay of Plenty dairy farmer, Murray joined the Board in 2007.

Leon Black A director of the Meat Board, Meat & Wool New Zealand Ltd and Ovita Ltd, Leon joined the Board in 2008, representing Meat & Wool New Zealand.

Wayne McLaughlan, Don Seath, Cliff Tipler, Kevin Bryant, James Brownlie, Chris Kelly, Leon Black and Tony Wilding. Absent: Tanira Kingi, Murray Linton.


2008 was a year of transition and substantial progress for Agriculture ITO. We introduced new National Certificate qualifications, best practice resources and a much more practical approach to training and assessment. The response from industry so far has been very positive, and more qualifications will be rolled out in 2009 in priority areas.

We are determined to ensure our training is relevant and adds value to the bottom line of farm businesses. I believe that over time the new approach should attract more employers and employees into training and boost productivity and skill levels in New Zealands most important industry.

There is plenty at stake. Our own independent research tells us the impact of skills training on productivity and the bottom line is significant. Industry research tells a similar story significant competitive advantage can be gained by investing in peoples skills.

This raises the wider issue of the need for greater flexibility in the way we meet the qualifications needs of our industry. While the NZQA-driven qualifications development model has served the industry well in the past, I believe our qualifications are taking too long to reach the market.

As new skills needs emerge or industry priorities change, so too must our qualifications and training, without delay. Our training system must keep in sync with the current needs of farmers. This means being alert to their signals, getting our message out to the market in new ways, such as through farmer Field Days, and adapting the design and delivery of our programmes.

The time has come to explore broader industry-driven models of training and qualifications. The learning and development

needs of a productive business go beyond the tasks done by its workforce business and people management skills are equally as important. Our customers are right to expect of their training organisation the capability to deliver a comprehensive array of training. In future, the ITOs role might include brokering training from more providers and different funding sources. Where training has a national application, it can still be registered on the National Qualifications Framework, but the whole process would be much more industry-driven.

I would like to acknowledge the hard work of Agriculture ITO staff this year. They have implemented change on many fronts. This has meant additional workloads for everyone. Without their energy and commitment, this organisation would not have achieved the results it has. After attending our staff conference in November, I was encouraged by the strong sense of shared ownership of the organisations vision and new direction.

I am optimistic about the coming year and its possibilities. We must ensure that our training remains relevant; that it continues to represent a great return on investment for stakeholders; that it responds to the changing needs of our sector. I believe change is a good thing. It is an opportunity to do things differently and listen closely to our customers. That can only lead to a more responsive and effective training system.

Tony Wilding Chairman

Chairmans Report

Delivering a More

ResponsiveTraining System

6Mission Deliver can do people to grow productivity, profitability and sustainability within our industries: Ensuring world-class industry training for the future, today

Developing skills and knowledge of individuals for personal growth

Engaging actively with those who can make a real difference to deliver on enterprise, industry and government strategy

Collaborate strongly with industries to influence Government policy and funding

World class at developing people for our industriesVision

ValuesAgriculture ITO Foundation Values Customers are our focus

Achieving is our aim

Respect for all is our goal

Excellence is our standard

Agriculture ITO Inspirational Values We are a spirited team with energy and commitment

Our quest is to be the best we can

We are courageous in our decision-making, never compromising our integrity

Agriculture ITO Annual Report 2008


stories at all levels. Banking and finance companies need to support their customers investment in labour productivity.

The challenge before us, which we are keen to accept, is to take a clear leadership role in delivering on the human capability needs of our industries.

My thanks are due to the great team we have at Agriculture ITO, our Board and our providers, who have shown real commitment to raising training outcomes. It is not easy to introduce new thinking, especially in a sector with long-held views about vocational training. I also wish to particularly thank our key funders, DairyNZ, Meat & Wool New Zealand and the Tertiary Education Commission.

In these uncertain economic times, it is more important than ever that New Zealand has a resilient primary sector that can weather the storm. A responsive training system, capable of delivering a stream of skilled and motivated people, is critical to the future of the country. I have every confidence that Agriculture ITO has the programmes and the people to do the job.

Kevin Bryant Chief Executive

The days of training for trainings sake are gone.

Our research shows that training adds immense benefit to the bottom line of a business at least 340% of the total cost if the employer, the trainer and the trainee are equally committed to achieving the best outcomes.

Our new learning programmes are designed to deliver those outcomes: better skills for employees; best practice applied at work; improved productivity.

These programmes are the result of ongoing collaboration with our industry partners and funders, in particular Meat & Wool New Zealand and DairyNZ partnerships that themselves are models of an outcome-focused approach.

Working with industry good organisations to identify their human capability priorities and develop joint strategies to meet them is the most effective way to ensure our country has the people and talent it needs to lead the world in primary production. Our success is evident in our dominance of vocational training in agriculture 95% of all National Certificates in the sector are awarded in Agriculture ITO qualifications.

More could be done. Our youth should be leaving school inspired by the tremendous opportunities the primary industries offer. Government leaders should be celebrating the good employment and education practices behind success

Rising to the Challenge

Chief Executives Report


BAL

ANCE

D S

COR

ECAR

DStrategic Goal Action Plans/Measures 2007 Result 2008 Result 2009 Target Notes

Stak

ehol

ders

Meet targets that ensure sustainable operations

Standard Training Measures meet budget 101% 105% 100.0%

Standard Training Measure (STM) is defined by the Tertiary Education Commission (TEC) as the amount of training required to achieve 120 credits (1,200 hours learning time). We contract with TEC to achieve an annual STM volume target. To qualify for STM payment, a trainee must be active (in training) at the end of each quarter. Thus STMs paid reflect the number of people actually in training, and directly affect our income.

Operating surplus (before projects) of 1-4% 4.09% -0.44% 0.70%

Income from training per full time equivalent staff member (FTE) $4,210 $3,910 $4,089We are expecting an improvement in 2009 following investment in qualifications development and production functions

Total costs (before projects) per Standard Training Measure $4,574 $4,393 $4,578

Training cost per Standard Training Measure $2,395 $2,516 $2,714A shift from off-job to on-job assessment of training, in line with funder expectations, affects training costs

Corporate overhead as a proportion of total costs 24.1% 22.5% 17.9%Includes Corporate Services (IT, Finance, GM Corporate Services and Administration), HR, Executive and National Board

% Income earned separate to Standard Training Measures 28% 26% 27% Diversifying our income streams is important to organisational sustainability

Industry contribution as a proportion of total income = 22% 24% 23% 22% Industry contributions to training is leveraged by government contributions through TEC

Environmental footprint monitored carbon footprint reading tonnes of CO2e per FTE 9 N/A 8

Our systems and processes support our businessLead time from confirmation of order to the delivery of learning resources N/A 0.97 days 3.0 days

Unqualified audits achieved Y Y Y NZQA (QMS)/TEC (Re-organisation) audits in 2009, PWC financial audit

Cust

omer

Our products meet customer needs

Credit achievement vs. 275,000 target 253,449 350,372 300,000 Impact of new, shorter qualification durations

Qualification completions vs. 3,000 target 2,903 5,140 4,100 National Certificates or National Diplomas

Average number of people per off-job training class 9.3 9.6 10Current contracts with providers guarantee payment for classes at 12 per class. Any classes with more than 12 is a productivity gain

Number of trainees in training per full time equivalent staff member 113 141 136 Indicator of workload/effectiveness

Number of people new to learning 3,830 5,070 New measureWe are working on a new approach to interacting with customers, including re-engaging with previous customers, which will inform a new methodology for setting future targets in this area

Proportion of people studying at level 4 and above 30% 26% 27% Impact of milk quality/new qualifications

Number of courses in off-job training 690 948 1,230 Reflects introduction of shorter duration courses

Customers trust us for service and advice on training solutions

Annual customer satisfaction surveys confirm that at least 80% of our customers acknowledge us as a trusted adviser (by Dec 08)

85% 85% 80%Customer satisfaction survey of employers and employees

80% of customers would recommend the ITO to friends/family 95% 93% 80%

Product development meets expectationsTime taken to develop and register new qualifications from start to finish N/A N/A 9 months

Time taken to review and update existing qualifications 12-15 months 12 months 9 months

Com

mun

ity

Develop future leaders in the rural and water sectors

Support capable communities

Leadership development (Includes Bound to Succeed (Outward Bound programme sponsored by FIL), Future Farmers, Dairy Industry Award finalists extension tours, and support for other programmes)

59 people 64 39This investment has significant benefits for participants communities, including improved attitudes to learning, workplace and family stability, income levels and community leadership.

Promote, support and organise programmes and events that encourage skill development, celebrate achievement and career progression, and engage with our local communities

44 events 38 35

Includes regional AgriAwards (graduation evenings) and Skills Days (competitions), and support for Maori Farmer of the Year, Dairy Trainee of the Year, Water Industry Trainee of the Year, Poultry Industry Trainee of the Year, Pork Industry trainees of the Year, Golden Shears and New Zealand Young Farmers

Investment (including internal time) N/A $604,940 $483,000We undertook a strategic review of Industry Good activities to ensure alignment with our strategic plan and industry objectives, and focus on areas where we really make a difference.

Peop

le

We are recognised as a desirable place to work % position in national Best Places to Work survey 42% 38% Top 30% Currently in 2nd quartile

We train and retain good staff

Training days per employee 5.2 5.1 5 Includes two days for staff conference

Employee turnover rate vs. target 13% 23.50% 17.50% 13%

Average sick leave days vs. target less than 5 2.5 3.2


Strategic Goal Action Plans/Measures 2007 Result 2008 Result 2009 Target Notes

Stak

ehol

ders

Meet targets that ensure sustainable operations

Standard Training Measures meet budget 101% 105% 100.0%

Standard Training Measure (STM) is defined by the Tertiary Education Commission (TEC) as the amount of training required to achieve 120 credits (1,200 hours learning time). We contract with TEC to achieve an annual STM volume target. To qualify for STM payment, a trainee must be active (in training) at the end of each quarter. Thus STMs paid reflect the number of people actually in training, and directly affect our income.

Operating surplus (before projects) of 1-4% 4.09% -0.44% 0.70%

Income from training per full time equivalent staff member (FTE) $4,210 $3,910 $4,089We are expecting an improvement in 2009 following investment in qualifications development and production functions

Total costs (before projects) per Standard Training Measure $4,574 $4,393 $4,578

Training cost per Standard Training Measure $2,395 $2,516 $2,714A shift from off-job to on-job assessment of training, in line with funder expectations, affects training costs

Corporate overhead as a proportion of total costs 24.1% 22.5% 17.9%Includes Corporate Services (IT, Finance, GM Corporate Services and Administration), HR, Executive and National Board

% Income earned separate to Standard Training Measures 28% 26% 27% Diversifying our income streams is important to organisational sustainability

Industry contribution as a proportion of total income = 22% 24% 23% 22% Industry contributions to training is leveraged by government contributions through TEC

Environmental footprint monitored carbon footprint reading tonnes of CO2e per FTE 9 N/A 8

Our systems and processes support our businessLead time from confirmation of order to the delivery of learning resources N/A 0.97 days 3.0 days

Unqualified audits achieved Y Y Y NZQA (QMS)/TEC (Re-organisation) audits in 2009, PWC financial audit

Cust

omer

Our products meet customer needs

Credit achievement vs. 275,000 target 253,449 350,372 300,000 Impact of new, shorter qualification durations

Qualification completions vs. 3,000 target 2,903 5,140 4,100 National Certificates or National Diplomas

Average number of people per off-job training class 9.3 9.6 10Current contracts with providers guarantee payment for classes at 12 per class. Any classes with more than 12 is a productivity gain

Number of trainees in training per full time equivalent staff member 113 141 136 Indicator of workload/effectiveness

Number of people new to learning 3,830 5,070 New measureWe are working on a new approach to interacting with customers, including re-engaging with previous customers, which will inform a new methodology for setting future targets in this area

Proportion of people studying at level 4 and above 30% 26% 27% Impact of milk quality/new qualifications

Number of courses in off-job training 690 948 1,230 Reflects introduction of shorter duration courses

Customers trust us for service and advice on training solutions

Annual customer satisfaction surveys confirm that at least 80% of our customers acknowledge us as a trusted adviser (by Dec 08)

85% 85% 80%Customer satisfaction survey of employers and employees

80% of customers would recommend the ITO to friends/family 95% 93% 80%

Product development meets expectationsTime taken to develop and register new qualifications from start to finish N/A N/A 9 months

Time taken to review and update existing qualifications 12-15 months 12 months 9 months

Com

mun

ity

Develop future leaders in the rural and water sectors

Support capable communities

Leadership development (Includes Bound to Succeed (Outward Bound programme sponsored by FIL), Future Farmers, Dairy Industry Award finalists extension tours, and support for other programmes)

59 people 64 39This investment has significant benefits for participants communities, including improved attitudes to learning, workplace and family stability, income levels and community leadership.

Promote, support and organise programmes and events that encourage skill development, celebrate achievement and career progression, and engage with our local communities

44 events 38 35

Includes regional AgriAwards (graduation evenings) and Skills Days (competitions), and support for Maori Farmer of the Year, Dairy Trainee of the Year, Water Industry Trainee of the Year, Poultry Industry Trainee of the Year, Pork Industry trainees of the Year, Golden Shears and New Zealand Young Farmers

Investment (including internal time) N/A $604,940 $483,000We undertook a strategic review of Industry Good activities to ensure alignment with our strategic plan and industry objectives, and focus on areas where we really make a difference.

Peop

le

We are recognised as a desirable place to work % position in national Best Places to Work survey 42% 38% Top 30% Currently in 2nd quartile

We train and retain good staff

Training days per employee 5.2 5.1 5 Includes two days for staff conference

Employee turnover rate vs. target 13% 23.50% 17.50% 13%

Average sick leave days vs. target less than 5 2.5 3.2


New Role-based Standards and Qualifications

2008 was a decisive year for Agriculture ITO. We transformed our qualifications and took action to reinforce a genuine learning culture in our industries and on the farm.

In response to industry demand, we reconfigured our standards and qualifications so our training programmes contribute more directly to farm productivity. In October 2008, we rolled out a new generation of shorter-length qualifications designed to make agriculture training more relevant and practical.

Farmers, farm staff, industry bodies and experts were all consulted in the design and implementation of the new standards and qualifications.

In terms of the volume of activity involved, a total of 42 qualifications and over 600 unit standards were reviewed or created in 2008.

The new level 2 and 3 National Certificate qualifications are organised around key enterprise roles and tasks, in areas such as animal health, feeding and pastures, and animal husbandry.

The new approach ensures employees have the right mix of skills and attitudes to reliably perform key farming activities with confidence.

Industry has told us it wants a training system that ensures that people actively contribute to productivity, and that is where our leadership energy has been focused. Aligning training more closely to business needs is the key to boosting productivity and profitability.

This change in thinking cannot be overstated. Its a shift from an academic emphasis to a workplace one. Theory, of course, is still important, but the emphasis is on can-do demonstrating competence in the workplace.

Assessment on the Farm

The new can-do approach means the trainees employer/manager is more engaged in the training process. More assessment occurs on-job, where evidence of skills arises naturally in normal work routines, than off-job. Research

shows greater engagement by the employer in both training and assessment is a key to improving training effectiveness.

Assessment is organised around meaningful chunks of learning, rather than a large number of discrete tasks. It makes more sense, for example, to assess an employees competence to build a fence rather than his or her ability to perform a host of contributing activities.

Comprehensive Training and Assessment Resources

We developed comprehensive training and assessment resources to support the new qualifications. We made a big investment in developing these best-practice resources for learners, tutors and assessors because they have such a major bearing on the quality and consistency of standards across the industry.

These resources have been developed in consultation with industry and key stakeholder groups such as DairyNZ and Meat & Wool New Zealand.

Outcome-focused Learning

Agriculture ITOs mission is to deliver can-do people to grow productivity, profitability and sustainability within our industries. We recognise that achieving this vision entails more than the overhaul of a qualifications and assessment system. It requires a commitment from all parties the employer, the trainee and the ITO as training facilitator to outcome-focused learning; learning undertaken with specific, measurable goals in mind.

For the ITO this means a deeper level of engagement with enterprises. It requires us to manage the training and learning process for our customers, not just administer a training system. We are keen to spend more time with employers to discuss how training can help them achieve their business goals.

To get the most out of training, employers and trainees must be clear about their roles in the process. Employers have to be committed to passing on skills and knowledge. They have to give their employees the opportunities to practise what they have learned. Trainees must be engaged in learning they see as purposeful and relevant to their current roles and their career goals.

We see it as a priority to help our customers see training as a business investment, not a cost. Many businesses and organisations not just those in the agriculture sector see training as a cost and the first casualty in tough times. The fact is, training is a proven way of achieving greater productivity and of attracting and retaining good quality staff.

To convince reluctant trainers, we need hard evidence about the ways training can add value to a business. Over the last several years Agriculture ITO has carried out a number of research projects which are yielding exciting results in terms of putting a dollar value on a training investment. Measuring the value of training in the future will continue to be a fundamental part of what we do.

Leadership and Collaboration


A High-performing ITO

Speed to market bringing new learning and assessment on the farm as quickly as possible is of the essence for a training system that is responsive to industry needs.

Currently the development and registration process can take longer than six months. To improve performance in this area, Agriculture ITO took steps towards a more mature model of quality assurance. This will give us greater responsibility for quality at key stages of development and delivery.

We are at the forefront of ITOs in moving towards this self-assured status, which has led to more robust internal processes and procedures and wider consultation with industry.

The key benefit for our stakeholders is that we will be able to speed up the process of setting standards and developing qualifications and programmes.

Regional CommitteesOur 16 Regional Committees cover all New Zealand's geographical regions. Their members are a wide cross-section of employers, employees and iwi involved in agriculture and water with a strong interest in training.

The committees are responsible for promoting, developing and encouraging industry training in their region. They meet twice a year to offer us direction.

Industry CommitteesOur five Industry Committees consist of ITO-elected or appointed members from our industry sectors pork, poultry, services to agriculture, pastoral and water. They meet at least twice a year and are responsible for:

advising on and helping to develop and review unit standards for their sectors

advising on and helping to develop and review specific industry qualifications for their sectors

advising on and helping to develop moderation action plans

developing specific education and training policies relevant to their sectors

carrying out these responsibilities within the Constitution of the Agriculture ITO, and within the directions of the Board

reporting to the Board twice a year.

AGRICULTURE ITO BOARD

REGIONAL COMMITTEES

Northland

Waikato

Bay of Plenty

Central Plateau

Taranaki

Manawatu/Wanganui

Eastland

Hawkes Bay

Wairarapa

Top of the South

West Coast

North Canterbury

Mid Canterbury

South Canterbury

Otago

Southland

BOARD COMMITTEES

Audit

Remuneration and Appointments

Charters and Profiles

Honorarium

INDUSTRY COMMITTEES

Pork

Poultry

Water

Agriculture

Antec

Regional and Industry Committees

Regional Committee members from left (standing): Linda McGinty,

Michael Pallesen, Margaret Lane, Karen Shaw, Meg Gaddum

(resigned 2009), Nicki den Baars, Matthew Richards, Chris Hurlston,

(seated): Colin Clemens, Peter Langford, Ted Ford, Beth Power-Kelly,

Jason Scown, Mike Visser, Angela Blyde, and Josh Broughton.


Strategic Relations

Going ForwardFor too long New Zealands training culture has been marked by competition and duplication rather than collaboration. We are determined to lead a change in this culture.

We are proactively building new partnerships with universities, institutes of technology and polytechnics (ITPs) and other providers. This will lead to more effective regional networks that ensure that every training dollar is spent wisely. In 2008 we secured funding to establish an Industry Leaders Forum to better coordinate the sectors training and encourage innovation.

In a similar vein, Agriculture ITO participated in a Land-based Review led by the TEC to look at education and training needs across the sector. The review identified a confusing array of qualifications and programmes in the sector and a lack of coordination of what was on offer at regional level.

It also identified a need for higher-level training at level 5 and above, and the need to address a declining number of graduates at university level. At a school level, the review said that more effort needed to go into encouraging students to pursue land-based careers.

Addressing these issues requires leadership and coordination. Agriculture ITO is ideally placed to fulfill this role and is making fresh progress in working alongside universities and ITPs to make sure there are coherent learning pathways available at regional level.

We are also working with a wide range of government departments and agencies to ensure education and training are recognised as key drivers of achievement for individuals and industry.

On the industry front, Agriculture ITO is working closely with DairyNZ and Meat & Wool New Zealand to create shared strategy and investment plans for human capability development. This is an acknowledgement that training has a vital role to play in achieving strategic outcomes such as attracting and retaining staff and improving the adoption of new technologies in the workplace.

2008 signalled a new era in agriculture training in New Zealand. In the year ahead we must continue to be responsive to industry needs and to strengthen relationships with stakeholders. Our goal is a flexible learning culture that engages trainees in purposeful learning and improves business performance.

Goals for 2009 Engage with a further ten Maori farming entities, in

East Coast, Hawkes Bay, Wairarapa and Taitokerau

Working towards agreement with Ngai Tahu iwi on training management

Complete solution-based training engagements with at least four Maori farming entities or individual organisations

Further promote Modern Apprenticeships, with a target of 60 people engaged in the scheme

Complete and roll out a staff training package, in partnership with a Maori training provider, to improve our understanding of an ability to engage with Maori farming entities at all levels of the organisation.

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0

23% (171) of our Modern Apprentices are Maori. In 2004 Maori comprised just 7% (27) of all Modern Apprentices.

2008 2004

171

27

Maori comprise 17% of all Agriculture ITO training at Dec 2008

886

The balance are in other industries apiculture, poultry etc.

11% (875) in Dairy + Artificial Insemination

14% (128) in Sheep and Cattle

21% (181) in Water

55% (886) in Wool Harvesting

875 181

886128

Subsidiary company ASL pursues a range of human capability opportunities which predominantly fall outside of Agriculture ITOs core activities and funding. Whilst the agriculture sector remains a core market segment for the business, ASL also works in other industries and internationally.

ASL partners with industry, providers of training and, where appropriate, government organisations on human capability initiatives, based on a fee-for-service funding model. ASL undertakes a range of work from consulting and project work,

Agriculture Services Limited (ASL)


Our People Oku Iwi He Mana Ohooho Our Land Oku Whenua He Mana Takatu Our Future Whakamaua ki a Tina

With an estimated 1.3 million hectares (4.9% of New Zealands total land area) of land under Maori ownership, the significance of this sector to New Zealand agriculture, and thus to Agriculture ITO, is immense. This is recognised in our strategic relationship role, through which we are able to engage directly with various agencies and Maori farming entities to determine their needs and how we may help meet them: Kanohi ki te Kanohi; Kia Pono te Korero; Whanaungatanga.

Agriculture ITO works with government agencies including the TEC, Te Puni Kokiri and the Ministry of Agriculture and Forestry and its Sustainable Farming Fund to promote Maori training aspirations.

We are part of the Working Group of the Maori Land Training Strategy, a Cabinet initiative formed in 2006, that includes representatives of Meat & Wool New Zealand, DairyNZ, New Zealand Horticulture ITO, and FITEC, the forestry ITO.

Among priorities identified by this group, which will be the focus of joint work in the future, are the need for:

a greater number of trained Maori staff in the agricultural sector

improved relationships between those involved as training coordinators and providers with Maori trusts and incorporations

long-term mentoring and monitoring services.

This year saw significant progress in our efforts in all these areas.

Arranging suitable programmes for skills training with key Maori farming entities is often the outcome of relationships developed over several years.

Highlights in this area included:

training engagement with 23 Maori farming entities, including Ahuwhenua trusts, incorporations, statutory and whanau trusts and individuals in Central Plateau, Rotorua, Bay of Plenty, Waikato, Whanganui, Taranaki and Ngai Tahu.

an additional 30 employees of Maori farming entities joining our Agriculture Modern Apprenticeship scheme. Agriculture Modern Apprentices follow a training pathway rather than engaging in one-off training events and are supported by extra mentoring and other resources to help them achieve their goals. It is a model of mutual commitment that works best when the trainee is supported by stable employment conditions. Ten of those Modern Apprenticeships arose from pre-employment training initiatives demonstrating the value of the supportive network of training provider, employer and adviser.

One of the major success stories in 2008 was the six Maori farm managers who graduated with the Diploma in Agribusiness Management. Pictured at their graduation ceremony are (front row from left) training adviser Rose Anderson, graduates Wayne Fraser and Peter Lee Ratima, Kevin Bryant, graduate Greg Barry, Tony Wilding, graduate Donna Sandilands, graduate Jason Taitoko and Keith Ikin (Waiariki Insiture of technology). Graduate Raymond Monk was absent. The ceremony at Te Kuiti Marae was hosted by the Hon Koro Wetere. Their story features on page 20.

to the provision of database services, to the development of new business opportunities.

ASL is the database manager for the New Zealand Agrichemical Education Trust which manages the Growsafe initiative and focuses on skill development in the safe use and management of agrichemicals.

During 2008, ASL developed a printery business to handle the printing requirements of all resources associated with the Agriculture ITO learning programmes. This is a significant new development for the ITO that promises to deliver a range of

benefits to industry stakeholders and training providers.

ASL continues to be involved in a range of projects that focus on the added value of training in the workplace and explore the linkages between training and the achievement of real productivity gains. This work is being expanded across a range of industries in 2009.

ASL is active in international markets with projects that promote human capability development primarily in the primary sector, including those that assist New Zealand business initiatives in those foreign markets.


Trainee and Certificate Numbers

Sector Outcomes

Dairy

Dairy Industry Trainees Age (Years)

Trainees Credits Achieved Certificates

2008 2007 2008 2007 2008 2007

7,857 5,660 242,284 124,444 3,198 928

*(Average of four quarter ends) as at 31 December 2008

Regional Distribution of Trainees/Employers*

165/109

231/12426/21

63/37345/197

245/162

330/253

833/574

77/49

277/147

303/148

179/97

282/155

470/264

120/72

227/115

Trainees/Employers

26% 15 21

34% 22 29

27% 30 39

10% 40 49

3% 50 +

1,0791,108

419

131

1,435

Average Number of MAs at Quarter End

400

300

200

100

02006

316

2007

361

2008

364

Agriculture ITO receives funding from industry group DairyNZ to help us achieve our common aims of developing the capability of people in the dairy industry. DairyNZ is funded by a levy on all New Zealand dairy farmers and government investment. Key performance areas for this partnership include:

setting and maintaining skill and training standards for the dairy industry

managing and promoting training opportunities for people with a wide range of abilities and experience employed in agriculture

developing qualification programmes in consultation with the dairy industry

contracting providers to deliver training against those standards

monitoring the quality of training

meeting government requirements to access funding for developing and arranging training and education for people engaged in the dairy industry

providing leadership within the industry on matters relating to skills and training needs.

Dairy farming featured in all forms of media in New Zealand as it enjoyed record payouts, saw a flurry of dairy conversions and struggled with labour shortages in some regions.

The big story in dairy training was the National Certificate in Milk Quality. In 2008, 4,279 people enrolled in and 1,927 people completed milk quality training. It was encouraging to see both the uptake of this short course training by people new to us, and its flow-on to further training engagement.

The Milk Quality programmes were the first to be rolled out with their own resources to be used by all providers. Resource development to ensure consistent delivery was a major project undertaken in 2008. As our qualifications suite was reviewed and updated, learner, tutor and farmer resources were researched, written and published to accompany it.

A similar approach is being undertaken with a new programme in development on dairy farm effluent, the first stage of an Effluent Management programme. Fonterras and DairyNZs emphasis on clean dairying, as with milk quality, has again proved invaluable in assembling resources and developing these programmes.

The process of splitting general qualifications into shorter programmes focused on specific areas of farming skills and knowledge saw 12 new certificates at level 2 and 3 registered with NZQA. Each has its own set of resources.

This process involved significant levels of consultation with and support from our key providers. We partnered with 14 providers to deliver our training last year, ranging from safety on farm to financial and resource management. The common element to all these is positive impact on the bottom line.

We have developed with DairyNZ an Investment Plan for 2009 that sets out mutual goals and objectives for the development of human capability in the dairy industry.


Lifting the GameMilk quality lies at the heart of this $6.3 billion export industrys success and can cost dairy farmers anywhere between 5% and 500% of the value of the milk in fines if impurities exist. The ability of milk harvesting teams to employ best practice has an immediate impact on farm income so there is a strong incentive for farmers to get it right.

Agriculture ITOs Milk Quality workshops and resources, developed in partnership with Fonterra and now into their second year of delivery, are proving to be vital components in the drive for excellence on dairy farms. Around a quarter of farm teams in New Zealand have attended the courses since they were rolled out.

Milk is our biggest export industry and we have to protect it, says Claire Chapman of Agriculture ITO, who project-managed the Milk Quality course development.

Farms are getting bigger, there are more staff to be trained and greater staff movement. Farmers have to feel secure that their people have the knowledge and can demonstrate that knowledge on farm. Everything we can do to give the industry the quality tick has to be a good thing.

The short and practical format of the courses, the supporting resources and the assessment by industry experts are hitting the right mark and appealing to a larger audience, says Claire.

You do the workshop as a team so youre all aligned and know what the standard is. Then you apply what you learn on farm and have a fresh pair of eyes assess it. Its not about written assessments its real.

For large dairy companies like Fonterra, more skilled people mean increased motivation, passion and pride in the industry.

Its about empowerment, says Peter Hammond, milk quality adviser for Fonterra. If we understand what were doing and the ramifications when we do things wrong, theres a much bigger incentive to get it right.

Were seeing a difference in attitude from farmers and their staff. Because the whole team goes along to the workshops together, they understand cause and effect, relationships and

For farm manager Jason Andrews, a group approach to training was an advantage.

Farm supervisor Brent Pocock believes milk quality is about business success and meeting overseas demands.

Subsidies have been brought in overseas, and we cant compete with that, so we need to produce a quality product that people are willing to pay more for.

Brent Pocock, farm supervisor



how tasks interrelate. Doing the course together means they can also make decisions together about on-farm practices. Everyone has buy-in.

Theres a real risk around food quality which the courses help to address, he says. Milk harvesters have to be able to harvest and consistently supply the finest quality milk. We still have some way to go, but these Fonterra-endorsed courses are a bloody good start. They have been a huge success and have won the hearts of the participants. We are actively encouraging our people to do them.

Peter was involved in the courses from conception through to launch, and worked closely throughout with Agriculture ITO. He believes the courses are a win-win for everyone involved.

We have a milk harvesting training programme that is empowering our milk harvesters with knowledge and understanding; that will help ensure the consistent supply of finest quality milk.

The approach to the development of the courses was particularly unusual, he says.

It was the first time industry approached a training organisation in this way, and less than a year from conception to launch. Thats a real first. So is the way in which people are assessed away from the classroom, demonstrating their understanding on farm.

We also developed the content before we developed the unit standards. I believe thats why the courses are so successful. We worked out what was relevant and what needed to be taught before developing the standards.

As a result, were hitting all the right chords. The feedback from our suppliers who have attended has been outstanding and everyone is giving the course the thumbs up.

Grade-free now for several years, Braeside Dairies has grown from a medium-sized farm milking 900 cows into a large operation milking 1,800-head at two cowsheds on 697 hectares outside Linton, near Palmerston North. That amounts to 620,000 litres of milk solids per year.

The 12-strong team, led by farm supervisor Brent Pocock, attended the stage 1 workshop in October 2008. Brent has worked at Braeside for over ten years and won the Allen Mead Memorial Trophy for Milk Quality in 2001.

Brent believes milk quality is about business success and meeting overseas demands.

You supply grade-free milk, its good for business, he says. Subsidies have been brought in overseas, and we cant compete with that, so we need to produce a quality product that people are willing to pay more for.

Having attended an earlier pilot and seen the potential in the course, Brent was keen to get the expanding Braeside milking team up to speed by doing the stage 1 workshop.

It was very good. It suited everyone from managers to juniors, he says. A few areas were a little bit over the heads of the juniors but I think it was encouraging for them to see where they could get to. Im certainly not past the point of learning, either! Ive been in the business a long time, but youd be surprised what I picked up.

Farm manager Jason Andrews began dairy farming only four years ago, climbed the ladder quickly and now oversees the milking of around 600 cows at Braeside. For him, the group approach was a real advantage.

It put everyone on the same level, he says. My younger guys are really open now, and happy to come and ask me questions. Its made them much more aware of whats going on, which makes everyones jobs easier. Instead of letting things happen, we know how to prevent them.

Nicola Cudby has grown up on a dairy farm. She joined the Braeside team in 2007, combining this with studying at Massey University. Despite covering aspects of milk quality in previous training, she found the workshop of great benefit individually and as a team-building exercise.

I picked up a lot of things I missed first time round, she says. Before training, we would do things on farm and not know the reason why. Now we have a much better understanding of the whole business. Its good to know were on the same page.

Before training, we would do things on farm and not know the reason why. Now we have a much better understanding of the whole business.

Nicola Cudby, dairy trainee


Teamwork is a really important part of milk quality, says Brent. If you can show people how a loss to the business means a loss to everyone in the business, they work better as a team.

Assessment by industry specialists takes place one to four months after the workshop, giving farm teams a chance to bed in what they have learned. This aspect of the courses gives them real depth, says Claire Chapman.

Industry experts are really into peoples understanding and knowledge during assessments on farm, she says. Theyre getting verification that teams are doing whats required.

Relationships between farms and assessors are strengthening as a result of this approach to assessment, she says.

Good relationships help to minimise risk. Assessors are being called in earlier to work alongside farms, nailing potential problems before they become real ones. Thats a real positive.

Richard Cash, a milk quality tutor and assessor with AsureQuality, has run over 50 courses in the past year. He has experienced this sea of change first hand.

Relationships and communication have really improved, he says. In the past, people have been a bit stand-offish towards us. We were the so-called dairy inspectors. Now were seen as

dairy assessors who are here to help. They see that we can be of benefit to them and effectively save them money, long term, by improving things.

Im seeing a lot of enthusiasm now on farms. I know of several that have done the course and are now entering competitions for farming awards.

Companies such as Synlait, Westland Milk Products, Dairy Holdings and Tatua Co-operative Dairy Company are welcoming the Milk Quality courses, as the purchasing habits of their overseas customers become more sophisticated and discerning.

Tatua processes 190,000 litres of milk a year, manufacturing a wide range of consumer, food service and ingredient products. Milk quality is critical and must be of the highest level, particularly for long-life products being stored at ambient temperatures.

Were actively encouraging our suppliers to do the courses, says Paul van Boheemen, Manager Supplier Services at Tatua. Its the first time weve ever done that for an ITO course.

The course supports other milk quality initiatives, such as changes to grading systems, that we are putting in place. Our suppliers know that were moving to tighten up milk grading standards and pay premiums for really good quality milk, so theres a real incentive to improve. The course allows suppliers to achieve those outcomes more easily.

In a tight timeframe, we developed short, practical courses and supporting resources for whole farm teams with assessment from industry experts

Dairy industry and exports protected

Farm income protected and reputation enhanced

Stronger teamwork and more highly skilled staff

Improved industry relationships

To ensure milk harvesting teams are employing best practice

What:

Why:

Results:

Lifting the Game through

Leadership

Were actively encouraging our suppliers to do the courses. Its the first time weve ever done that for an ITO course.

Paul van Boheemen, manager supplier services, Tatua Co-operative Dairy Company

Analysis of milk quality helps farmers monitor their product.


Trainee and Certificate Numbers

Sector Outcomes

Sheep and Cattle

Sheep and Cattle Industry Trainees Age (Years)

35% 15 21

32% 22 29

21% 30 39

8% 40 49

4% 50 +

Trainees Credits Achieved Certificates

2008 2007 2008 2007 2008 2007

934 1,079 26,483 29,640 386 349

Agriculture ITO partners Meat & Wool New Zealand in achieving the joint aims of developing the capability of people in the livestock farming and wool production industries. Meat & Wool New Zealand is funded by a levy on livestock slaughtered and wool sold. Key performance areas for Meat & Wool New Zealand include:

improving skills and supply of skilled staff

ensuring training reflects best practice

meeting government requirements to access funding for developing and arranging training and education for people in the sector

managing and promoting training opportunities for people with a wide range of abilities and experience employed in agriculture

promoting and managing the Modern Apprenticeship scheme

providing reports on training activity.

The meat and fibre sectors of the economy also had their share of headlines in 2008 though for different reasons than dairy. Ongoing low prices for wool, low meat prices that only began to recover towards the end of the year, droughts and land price pressures from dairy and arable producers all made for trying times for sheep and cattle farmers.

They are a resilient lot, though, and in many areas there remained a high commitment to train staff at all levels notably wool harvesting. Shearing and handling wool is another agricultural area where New Zealand leads the world.

Our level 4 and 5 course numbers seem to be holding, but as the number of shepherds has declined in many areas, so too has the ability to pull enough people of the same level together to attend training.

We anticipate a positive reaction to the new level 2 and 3 qualifications emphasising can-do skills as they roll out through 2009. The level 3 Stockmanship qualification particularly has appeal to people not inclined to sitting in formal learning environments.

As with DairyNZ, we have developed an Investment Plan approach to help Meat & Wool New Zealand achieve their goals in human capability development. An area of focus for us will be looking at ways in which we deliver training to this sector, and testing alternative delivery mechanisms.

197116

47

20

175

*(Average of four quarter ends) as at 31 December 2008

Regional Distribution of Trainees/Employers*

10/7

37/13104/61

67/4856/40

21/8

13/9

45/36

22/17

20/18

19/16

58/38

12/12

39/26

14/12

18/3

Trainees/Employers

Average Number of MAs at Quarter End

100

75

50

25

02006

98

2007

89

2008

78


Farm manager Wayne Fraser and Training Adviser Rose Anderson discuss business productivity on farm.

Agriculture ITO is upskilling Maori farm managers in the King Country with a new flexible training model that fits in with work and family commitments. The new approach is enhancing careers and boosting business productivity.

Six King Country farm managers have successfully combined work, study and a host of family and sporting commitments to achieve an Agriculture ITO National Diploma in Agribusiness Management.

All agree the National Diploma has been a tremendous boost to their skills and confidence, and helped advance their careers. The benefits to business are obvious too their employers are keen for them to keep learning.

Agriculture ITO developed the tailored training solution in partnership with local tertiary provider, Waiariki Institute of Technology.

Agriculture ITO Training Adviser Rose Anderson says the key to the initiatives success was the ITOs willingness to

think outside the square so that people could keep learning while they were working. The managers attended night classes held in the New Zealand Shearing Championship headquarters The Woolshed in Te Kuiti.

The ITO delivers these classes throughout New Zealand but what we did in Te Kuiti was deliver the course in a way that suited the trainees and where they lived, says Rose.

The National Diploma covers farm business planning, physical resource management and production management

everything required to boost yields, productivity and the bottom line.

Farm manager Wayne Fraser runs a dry stock operation (7,000 stock units) on a large sheep and cattle farm near Te Kuiti. He is clear about the value of the course and what it has done for his career.

This course really helped me when I was job searching. When people found out I was doing business management studies it was a big plus. People are looking to employ people who arent just experienced, but also have a ticket.

Lots of people have general farm experience, but they lack the business and technical aspects of farming. For example,

Flexible Training Proves a

Winner

Doing business management studies was just the ticket for Wayne Frasers farming career.


using a Farmax computerised management system. Those systems are only as good as the data you enter and your ability to analyse it. Doing the training means you are making informed decisions and those skills can have a huge impact on the operation, money-wise.

After doing the course I look at pasture management from a different perspective. I make really informed decisions about where stock should go and how much grass is growing. Thats a huge part of farming. If you dont get your pasture management right, youre basically pushing it uphill.

A feature of the pilot was that the six managers studied collaboratively. Farm consultant Greg Barry, whos been in the industry 42 years, took on the role of mentoring the group.

Each of us had different strengths, experiences and skills so we decided to work together. We met every fortnight in class, but we also got together on the other week to work as a group to prepare for class. Whatever we were going to achieve we were determined to do it as a group, says Greg.

That approach worked well, says Peter Lee Ratima, who manages a 1,200 acre dry stock farm near Piopio. You feel a lot more enthusiastic about training when you are doing it with other people you know and get on well with. Sometimes people are scared to speak up or ask questions. Thats the advantage of working with people you know. Pooling our knowledge led to us all gaining a better understanding. The knowledge I have now is 100 times more than when I started. That makes day-to-day farm management that much easier.

There was plenty of pride in this rural community when the group graduated at Te Tokanganui-a-noho Marae in late 2008.

It was a huge, huge thing for this community and it has made

it easier for anyone who follows, remembers Greg. Id done a lot of things in farming, but I didnt have a Dip Ag.

The greatest buzz for me was seeing the other guys graduate. Now theyve got something to show for their skills, thats put them ahead of everyone else. Ive told them not to stop here. The next thing is a degree. Well be pursuing that in 2009.

At the nearby Waituru sheep and cattle station in Piopio, stockman Jason Taitoko has also taken a step up in his career thanks to the National Diploma.

I wanted to go further in my career. It was hard studying at first because I was playing rugby for King Country and missed a few classes, but we did those home studies and pulled each other through. The best thing was that the ITO had designed the training to suit our lifestyle.

I used to be one of those people who thought, I dont need to do this training, Ill just learn it all on farm. But if you want computer and budgeting skills you have to train. Training is so important, not just for the business, but for me personally

we get paid on performance and how much weight our cattle put on. The course has made me more aware of things like production targets, measuring grass and budgeting.

I lacked confidence before I did this course. Its really taught me to believe in myself.

Since graduating with her National Diploma, farmer/tutor Donna Sandilands has bought a farm and is planning extra-mural tertiary study majoring in wool fibre and genetics.

I did enjoy doing the course. I liked mixing with the other students and bouncing ideas off them. I come from a farming background but I needed training to become a more efficient farmer.

Farmer/tutor Donna Sandilands: I needed training to become a more efficient farmer.

Stockman Jason Taitoko combines King Country rugby with sheep and cattle farming.

I wanted to go the next level of education and the next level of farming. To achieve that youve got to learn more about what happens out there on the farm.

Wayne Fraser, farm manager (pictured above left with Rose Anderson and Greg Barry)



Overcoming geographical, workplace and delivery barriers to ensure delivery of business management courses

Management-level skills brought on farm

Providers working with customers to provide tailored training solutions

A training culture developed in key economic and demographic areas

Industry recognises customer-focused training and support to deliver results

To ensure industry best practice reaches everywhere

What:

Why:

Results:

Flexibility to Deliver on Customer Focus

The ITO delivers these classes throughout New Zealand but what we did in Te Kuiti was deliver the course in a way that suited the trainees and where they lived.

Rose Anderson, Agriculture ITO Training Adviser

This course has allowed me to buy my own farm. It enabled me to set out my goals in achievable steps so it wasnt just a dream I had. Id recommend it because you meet so many people and bounce ideas off them. I lacked practical experience but these other guys had it. Doing it part-time was important too, because I was working as a full-time shearing contractor.

A crucial support role fell to Agriculture ITO Training Adviser Rose Anderson. Undertaking formal study was a big commitment for the participants. Many had not studied since school and for some it was their first taste of success. Participants described Rose as the glue that held the group together.

If it hadnt been for Rose pushing me, I wouldve stopped. But with her help and support, I got there, says Donna.

Now the ITO plans to roll out flexible, management-level training in other regions, to upskill Maori working in agriculture. The six King Country trainees have certainly shown that with the right customer focus, training is possible anywhere, any time, at any stage of a persons career.

Wayne Fraser is full of praise for the way the course was organised. The ITO put a great package together for us. We sat down and talked to them about what we wanted and they went away and came back with a good solution.

Rose Anderson agrees that flexibility of approach was crucial.

We were committed to organising a time and place that suited the trainees. It was all about giving them the flexibility to continue learning and learn in the way they wanted. They all had families and job responsibilities.

She says it was important to be open to different ways of learning too.

They wanted to sit down and discuss things together and enhance each others learning. We needed to ensure they could work as a group, not just as individuals.

Wayne Fraser sums up what the course has meant to him. I wanted to go to the next level of education and the next level of farming. To achieve that youve got to learn more about what happens out there on the farm. When I was 18 I used to work on a monitor farm and all the technical stuff used to go straight over my head. But once I started the Ag ITO course, it all fell into place.

Industry veteran Greg Barry agrees. It surprises me that more people dont take up this challenge to make themselves a better farmer. You can be a good farmer, but in todays world, youve got to understand the technical and business side to really move forward. Its very, very important to keep learning.

As a result of doing this course, were managing this property better. Were using the pasture better to raise the cattle better so they reach their target weights sooner. The property isnt getting bigger, were managing it better.


Rural ServicingThe rural services industry plays a vital role in supplying and informing rural businesses. Service people require a broad knowledge of farming systems, livestock and pasture issues, and products. Our emphasis with this sector is on creating customised, task-focused learning programmes. We are actively engaged with RD1, Goldpine, PGG Wrightson and Elders.

Milestones in the year include completion of the first intakes for the National Certificate in Rural Servicing (Level 3) and National Certificate in Retail (Level 4).

Agrichemical SupplyA component of learning required for rural servicing staff is agrichemical supply. We developed a short course appropriate for newer staff, and offer the National Certificate in Agrichemical Supply for more senior staff.

LandcorpLandcorp, the state-owned farming enterprise, has a strong training culture and works closely with us to support training in the workplace. This included a review of the National Certificate in Farming Skills to focus on can-do skill training and assessment. An Agriculture ITO roving assessor for this programme will ensure consistent assessment and minimal time off farm for Landcorp staff.

Artificial Insemination and Herd TestingQualifications in both these areas are under review in consultation with key stakeholders and customers. Artificial insemination training was offered in 2008 while herd testing training was put on hold.

Wool HarvestingShearing and wool handling is our second largest training sector after dairy and interest in gaining qualifications remains strong. A review of all wool harvesting qualifications began in 2008 and should be completed during 2009. Training support and provision is handled through Tectra, and we acknowledge the contribution they make in this area. We are also grateful for the support of Meat & Wool New Zealand and the Shearing Contractors Association.

Sector Outcomes

Other Industries

Agreements by Level

Trainees

Trainee Gender

Completion Rate

Trainee Ethnicity

European

Maori

Female

Male

Completed

Not Stated

Other

Pacific Islander

Rural Servicing Wool Harvesting Pork Pest Control Poultry



Level 2 Level 3 Level 4 Level 5

Rural Servicing 11 771 12 5

Wool Harvesting 1,743 664 300 0

Pork 22 36 48 3

Pest Control 0 371 0 4

Poultry 205 56 45 12

2000

1750

1500

1250

1000

750

500

250

0Rural

ServicingWool

HarvestingPork Pest

ControlPoultry

2008 2007

539

758

1,624

1,814

78 82

276152

253 235

39%

345

497

194

36

65%

1,091

886

533

712

135111

2


PorkA new model for the National Certificate in Pork Production (Stockperson) (Level 3) course saw trainees undertake a common package of learning, rather than a core with electives. Feedback was positive and the same modes were applied to the herd managers course, incorporating the Grower Unit strand.

The on-farm Core Skills programme has been popular for immigrants and career changers, providing an excellent introduction to the issues of biosecurity, animal welfare and health and safety. The National Certificate in Advanced Pork Production will be rolled out in 2009.

Our provider, Massey University, and the industry group New Zealand Pork, are key partners in developing and delivering training for this industry.

Pest Control and Possum MonitoringThroughout 2008 we worked closely with the Animal Health Board (AHB) and the National Pest Control Association to ensure people new to the industry received all the necessary training. New minimum training requirements from the AHB for their contractors were agreed. These will be presented at the AHB contractor meetings early in 2009.

New additions in pest control were the pest-specific Traps, Toxins and Biology units for Mustelids, Avian, Rodents and Rabbits, which complement the existing Possum Control units.

PoultryTraining in the poultry industry is strongly supported by the key industry bodies Poultry Industry Association of New Zealand and the Egg Producer Federation of New Zealand.

Our level 2 qualifications are widely accepted as the minimum standard for meat growers and table egg producers. This has driven uptake at that level and led to improved interest in further training, such as courses for managers and supervisors. Learning at higher levels covers decision-making, staff management, risk management and planning specific to the industry, and a customised Rural Staff Management programme was held.




2008 2007 2006

Rural Servicing 15 8 4

Wool Harvesting 143 106 62

Pork 5 3 2

Pest Control

Poultry 6 2

Modern Apprenticeships (avg recorded quarterly)

National Certificates

1000

900

800

700

600

500

400

300

200

100

0Rural

ServicingWool

HarvestingPork Pest

ControlPoultry

2008 2007

245

516

943

832

12 13

127 98

48%

259

240

17

30

66%

137

178

81

20 18

24%

53

53

24

9

2

5

1

13

2 Rural Staff Management

Feedback from participants in our Rural Staff Management courses has been very positive. Sharing knowledge and experience of what makes for effective work teams is a vital part of building the reputation of farmers as good employers. The course comprises four workshops focused on getting the employment structure, expectations, processes and people right. We are looking at ways to move the assessment from paper-based scenarios to real application on the participants farms.

Anyone who is in the position of employing staff, does the course and applies what theyve learned, will definitely find improvement in productivity and profitability.

Beth Leeder, farm owner, Bay of Plenty


The National Certificate in Rural Servicing (Level 3) is a good example of working with industry and customers to deliver on business outcomes.

Rural services sales people need a wide and accurate knowledge of farming systems and practices. They also need extensive product knowledge so they can provide good advice to farmers.

Furnishing people with much of that knowledge is the aim of the National Certificate in Rural Servicing.

Developing an effective learning package from scratch demanded close collaboration from experts in the industry. Rachel McGovern, training manager for RD1, was one of a team of people that included representatives from PGG Wrightson and Farmlands who jointly developed the course.

During the development stage, the team met every couple of months in Wellington.

Delivering on Business

Outcomes

RD1 Putaruru store manager Peter Wright with dairy farmer Graham Lamb. Rural servicing staff need extensive product and farming knowledge to meet their customers needs.

We discussed what worked and what didnt for different companies, Rachel recalls. It was really good to work on what would be good for the industry.

Once the course content was sorted, it became a matter of registering it with NZQA, and working out how to deliver it.

Flexibility here is particularly important, because of the difference in learning styles and the needs of the training customers.

The way Ag ITO can almost personalise the course to each companys requirements is really good, Rachel says.

RD1 wanted a really hands-on emphasis in delivery and Dairy Training Ltd tutor Wilma Foster was ready to give it including a field trip to a pet-food factory to see how cows work from the inside.

Getting out and seeing what theyve been learning about in class makes a difference, Wilma says. It relates the


Industry experts collaborate to create hands-on courses for rural servicing companies

Fruitful industry collaboration

Enhanced knowledge within sector

Courses tailored to business needs of individual rural services sales owners

Better advice and service for farmers

Greater job satisfaction for rural sales staff

Ensure rural sales staff have extensive knowledge and understanding of farmers product needs and business

What:

Why:

Results:

Delivering on Business

Outcomes

When farmers come in and talk about grades and whats happening on farm, you understand what theyre talking about.

Manu Kareko, rural servicing sales person

bookwork to something theyre doing which helps them remember it a lot more.

The proof of that is in participants course assessments.

Their answers are more practical and applied, and show more depth than answers from something theyve learned in a book especially if they relate it to their own farm.

For Manu Kareko, who works in RD1s Dargaville store, the formula is working well. He was one of 17 who took part in the first intake of the Rural Servicing course.

I never thought Id enjoy a course this much. It seems each module gets more interesting.

The autopsy was real interesting. I worked at the meatworks, but Id never really had a good look inside (a cow).

Other learning Ive done was more theory. With Ag ITO you actually go out and do stuff, with the tutor and the adviser there.

I retain information better if Im actually doing it hands-on.

The outcome is theyre better able to relate to farmers, Agriculture ITO Key Accounts Adviser Sharon Orr says.

It gives them a better understanding of what farmers need and what their situations are, and that enables them to ask the right questions, to give them the right product.

Its not just the customer who benefits from rural service staff having an increased appreciation of their business. It also gives staff members more confidence to match customer needs to products in store it makes them more productive. That also translates to happier staff, more satisfied customers and happier employers. Agriculture ITO research shows that increased job satisfaction leads to improved staff retention.

Says Manu: When farmers come in and talk about grades and whats happening on farm, you understand what theyre talking about.

The extra knowledge makes work more enjoyable.

Course participants went on a field trip to a pet-food factory to see how cows work on the inside.

Manu Kareko (at right) from RD1s Dargaville store: I never thought Id enjoy a course this much.


Increase in Modern Apprentice Numbers:54 Modern Apprentices in 2008, up from just 4 in 2004.

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National Certificates

Water

2008 saw the launch of the National Certificate in Water Reticulation (Supervisor) (Level 4) course. This long-awaited qualification creates a career path for trainees who have completed the highly successful National Certificate in Water Reticulation (Level 3) and wish to grow their technical and supervisory skills.

2009 will see Water Industry Training embark on training expert workplace assessors to undertake on-site assessments for our National Certificates in Water and Wastewater Treatment. We expect this initiative will:

decrease the time it takes a trainee to complete a qualification (duration)

decrease the cost of the assessment process

decrease the time waiting for an on-site assessment

increase the completion rate of the qualifications

increase the flexibility of the on-site assessment process

increase capability of personnel within the water industry.

237 National Certificates and Diplomas achieved at levels 3, 4 and 5 in 2008 (up 20% from 2007).

To celebrate reaching the 50th Modern Apprentice milestone, Water Industry Training organised a Gathering of apprentices in Auckland, taking up the kind invitation from WaterCare Services Ltd to host an apprentice workshop. Thirty Modern Apprentices travelled from around the North Island, including Taranaki, Porirua, Ruapehu, Waikato and the Bay of Plenty. They were given a tour of the largest water and wastewater treatment plants of the country and the cutting-edge membrane filtration plant at Tuakau.

42% 2008

Completion presently at 42%. Aiming for completion rates of 6070% for trainees entering training in 2009.

869 trainees in 2008 (up 10% from 2007).

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Jonathan Manava at work in Porirua.

The water industry is using the Modern Apprenticeship scheme to recruit and train some much-needed new recruits. Jonathan Manava is part of the new wave of trainees.

Like many other industries, the water industry faces a severe skill shortage in coming years as the ageing workforce retires. Attracting and retaining enthusiastic young people and bringing them up to speed quickly is vital for the future-proofing and continued growth of the industry.

For several years, Water Industry Training Manager Annie Yeates and her colleagues have been spreading the word not only about the benefits of industry training, but also the advantages of creating new apprentice positions and taking on absolute beginners through the Modern Apprenticeship scheme. The hard work is paying off: apprentice numbers currently stand at 54, up from just four in 2004.

It is a challenge for any organisation to take on someone with no experience. Employers generally look for staff with experience who can hit the ground running, but as the Modern Apprenticeship scheme shows, taking on a beginner has some real advantages youth, enthusiasm, a positive attitude. Get

em young and keen is the thinking.

The Modern Apprenticeship scheme provides young people with a training pathway, mentoring and support without attracting a student debt. Apprentices learn practical skills on the job, and gain formal credit for their achievement of

real-world competencies. They also participate in regular classroom-based learning, where they complete assessments in theory directly relating to their jobs.

Through the scheme, in return for creating an apprenticeship, employers can be assisted with advertising and recruiting, and have access to financial help with Water Industry Training costs. They also get the support of a Training Adviser who helps them set goals that realistically reflect the needs of both the trainee and the business, and monitor progress and achievement.

Porirua City Council services a city of 50,000 people, and is one of a growing number of employers who have stepped up and created apprentice positions.

As a council, were committed to bringing in younger people and training them up, says council waterworks manager Alistair Hurley. And were more than willing to fund that training. Its fantastic, and it needs to be done.

Regeneration

Jonathan out with the boys and learning from them.


Modern Apprentice Jonathan Manava, a 23-year-old Samoan, Porirua born and bred, joined Alistairs team of eight in early 2008. As the first Modern Apprentice, Jonathan impressed his boss right from the get-go.

He was completely fresh to the industry but has been fantastic, says Alistair. He has an eagerness to learn and seems to thrive in the working environment.

Annie Yeates has been equally impressed with Jonathans approach to industry training. We put an emphasis on health and safety in our training, and getting it right first time. Jonathan has really excelled.

With a background in the performing arts he played rhythm guitar and did backing vocals for his reggae band and a baby daughter, Jonathan made a remarkably smooth transition from stay-at-home dad to Modern Apprentice.

I knew it was time for me to get a job, he recalls. I decided to find me a trade I always wanted to work outside. I saw the ad in the paper and thought it would suit me.

One year on and halfway through his National Certificate in Water Reticulation (Level 3), assessments passed with flying colours, Jonathan couldnt be happier.

No two days are the same in this job its like a jack-in-the-box surprise! I learn something new every day. Its awesome being out in the fresh air instead of stuck inside. I also go out with all the boys and learn a lot from them too.

Leveraging apprenticeship scheme to support employer and employee ensuring staff retention.

Fostering positive approach to learning among new staff

Supportive approach delivers loyalty and commitment

Apprenticeships address skill shortage and ageing workforce.

What:

Results:

Regeneration through Developing People

Youve got to be a supportive employer to get the best out of your guys.

Alistair Hurley, waterworks manager

Work and training have made him a more confident person, says Jonathan. I used to be pretty shy. The performing arts have helped as well as learning new industry skills. Ive now got a lot more confidence when dealing with people.

The key to success is to go hard! he says. You only live once. Do it right first time.

There has been no shortage of support

annual report 2008

Documents

agriculture ito staff

agriculture ito qualifications

sector outcomes

agriculture ito directors

standards of learning

knowledge learning

cost of learning

cando learning