Housing issue with new plantings

A doubling of cherry plantings in Central Otago in the next five years will create significant accommodation shortages for staff, a Central Otago labour market report has predicted.

The report, released earlier this week, said there would be 465ha of new cherry plantings in the next four to five years, a 56% increase on current plantings.

Feasibility studies are under way to develop a further 495ha of cherries. New grape plantings of 284ha are also planned, a 14% increase on current plantings which will bring the total Central Otago vineyard estate to 2275ha.

But the continued growth of the sectors was contingent on solving "labour challenges", and the increased plantings would leave a forecast shortfall of 2298 beds, the report said.The report predicted an increase in demand for accommodation to 6198 beds to cater for peak harvest demand by 2021-22 for both sectors.

"While there is a predicted increase in bed and camping capacity supply of 1615, there is still a forecast shortfall of 2298 beds."

Central Otago Labour Market Governance Group chairman Stephen Jeffery said it was "encouraging to see further growth in Central Otago’s rural economy" and "the key thing now" was to take the report’s data and recommendations "and use them to guide action that will bring solutions. This would take a strong concerted effort by growers, stakeholder groups and local and central government, supported by the governance group."

The report makes 13 recommendations, including for the governance group chairman to highlight with officials the need for raising the Regional Seasonal Employment (RSE) cap, improving processing capacity over the Christmas break, and increasing promotion of horticulture and viticulture work opportunities to holiday visa holders.

Exploring options for engaging under-utilised workers in the community, such as older people and parents with young children, and allowing more flexible work conditions are further recommendations.

The Labour Market Survey was funded jointly by the New Zealand Fruitgrowers Charitable Trust, Central Otago Winegrowers Association, Seasonal Solutions Co-operative Ltd, Immigration New Zealand and Central Otago District Council.

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