The rapid development of artificial intelligence may have some worried about losing their jobs, but farmers embracing the technology say it could be the answer to their workforce troubles.
As the minimum wage rises and finding workers gets harder, they are turning to automation to keep costs down while growing the same amount of food.
While the creative solutions have the potential to dramatically improve profitability, grower groups say getting it wrong can be an expensive mistake.
Time is money
Preparing the ground and laying irrigation for a cherry tomato crop used to take Jason Gatt’s company Sunripe a week.
They can now prepare 32 hectares in just over two days using autonomous tractors fitted and guided by GPS navigation to create precise rows to exact measurements.
“We’re investing where we think it’s going to pay for itself over time and we’re seeing the result as it goes,” he said.
“Technology is getting better every day. You just have to hunt for it and be willing to try.”
GPS-guided tractors are gaining popularity on farms as growers streamline operations. (ABC News: Tayla Larsen)
Mr Gatt started using the technology 15 years ago and now has more than 20 GPS tractors across his properties.
“The next step we’ll be going to is instead of doing a single row we’ll be going to three-row machines,” he said.
“Anything we can do to get labour down or get it more efficient we’re definitely working towards.
“People don’t realise that it’s not just that wage that you’re getting, it’s also your superannuation and all the other expenses on top of that.”
Around the country more growers like Mr Gatt are investing heavily up-front, exploring automation and simplifying old processes to remain viable.
In the latest benchmarking report from Level Up Hort — a program funded by grower-owned research corporation Hort Innovation to improve business performance — workforce efficiency was a critical factor in overall profitability.
“There’s been a lot of discussion around labour, increased costs of labour and challenges with securing and retaining labour,” said project leader Steff Carstairs.
“In general, labour continues to be a pain point for horticultural businesses, and a major cost.
“Those who seem to be doing better have greater efficiencies around their labour management.”
Jason Gatt says upgrading farm machinery and technology has cut labour costs. (ABC News: Tayla Larsen)
The report, which represents businesses producing 5,596 hectares of vegetables and onions across six states, showed the most profitable growers spent the equivalent of about a third of their income on labour.
For the least profitable farms that figure rose to 51 per cent.
Richard Shannon, the executive officer of the National Farmers Federation’s Horticulture Council, said over the past five years business costs had gone up significantly, but grower returns had not.
“That’s across the board — all other inputs have gone up at the same time,” he said.
“That’s led to a big squeeze across the industry and everyone’s feeling the pinch.”
Not shying away from new solutions
The latest contribution to the squeeze is the minimum wage which rose by 3.5 per cent from $24.10 to $24.95 per hour on July 1.
Rather than an hourly rate, workers covered by the Horticulture Award can be paid a piece rate based on how much they plant, pick, sort and pack fruit and vegetables.
They are also guaranteed to receive at least the national minimum wage.
Fair Work Ombudsman Anna Booth said that meant all workers would be paid more.
“We obviously apply that to all the awards, and in particular the horticulture awards, so you can see how that works in with the piece rate,” she said.
Mr Shannon urged growers who were looking for creative solutions to reduce their wage bill to do their homework and get advice before making an expensive decision.
“Ideally visiting other farms, getting on an industry tour, whether that’s domestic or overseas, just to get a better idea of what their options are,” he said.
“I guess the old adage is to be working more on your business rather than in your business.
“As business owners and people who are in leadership positions the tendency is to get stuck dealing with day-to-day evolving issues rather than taking that longer look into the medium and longer term, and thinking more strategically.”
Ray Fulcher uses hydroponics to grow figs in a temperature controlled greenhouse. (ABC News: Tayla Larsen)
When Bundaberg producer Ray Fulcher transitioned from small crops to custard apples and figs it forced him to take a more strategic look at his growing methods.
It was a long process to determine the optimal conditions for his figs, which are grown in a greenhouse previously used for roses.
“It’s all temperature controlled and humidity controlled to a degree,” he said.
“The irrigation is all hydroponic and it makes life very simple for a grower … but it’s very expensive.
“Those greenhouses when I put them in cost about $2 million and most average people can’t afford that.”
Ray Fulcher can control the conditions of his fig greenhouse with the press of a button. (ABC News: Tayla Larsen)
Mr Fulcher adapted his workforce too, moving to labour hire contractors to get in a certain number of workers at specific times in the season.
“We can’t find enough good workers,” he said.
“To be honest probably young people don’t really like that environment that we’re in.
“In winter it’s very comfortable working conditions, but in summer it’s horrendous.”
Mr Fulcher said growers had to accept labour costs were a part of doing business and should focus on optimising the workforce.
“You want to do it? You’ve got to pay the extra cost,” he said.
