Border closures create trouble for New Zealand’s dairy farms, escalating labor shortage

Despite the latest uptick in NZD/USD, growing concerns in New Zealand’s dairy sector could provide headwinds to the kiwi dollar going forward.

According to Bloomberg, coronavirus pandemic-induced border closures and the country’s tightening labor market have led to a shortage of as many as 6,000 workers in New Zealand’s dairy industry.

Tim Mackle, Chief Executive of DairyNZ, said in a statement Tuesday, “the government is granting exemptions that will allow 200 foreign dairy workers to come into the country, but that is insufficient to fill the shortfall.”

Additional quotes

“Border closures and an unemployment rate at 3.4% are creating ongoing stress for dairy farmers.”

“Without the right number of people on farm, it puts animal welfare at risk, constrains the sector’s ability to make environmental progress, and places a greater burden on increasingly stretched teams, with staff often having to work extraordinary hours.”

“There is no point having the class exception if people can’t actually then get into the country due to border restrictions.”

“We are exploring on-farm isolation as an option. Farms are already away from communities, and farmers are used to maintaining good hygiene standards.”