Succession Management in Horticulture Human resources and the future of food production Ian Macleod, Peracto Pty Ltd Ausveg Convention - 16 April 2011

Succession Planning

Fruit with life experience

Overview About Peracto Is there a problem? Why is it important? What can we do?

We provide independent agricultural research and related services in Australasia for global markets

Operating since 1976Operating since 1976 All cropsAll crops

Is there a problem? Succession within families Bringing in “outsiders” Financial considerations Lifestyle Professional advice – financial / legal

From -

Demographics (age)

A problem across all of our industry?

A problem across Australia?

Why is it important? Land Management Food Security

The Coming Famine – Julian Cribb “....the challenge facing the coming generation of farmers. It is to double global food supply using half the water, on far less land, without fossil fuels, with scarce and costly fertilisers and chemicals, amid spreading diseases and pests, under the hammer of climate change”

A Current Affair “Juggling the family food budget has never been tougher” 4 th April 2011, Tracy Grimshaw

Some Perspective… "Over the past 30 years the cost of food as a proportion of [UK] disposable income has come down from 30% to less than 10% " Robert Schofield, chief executive of Premier Foods plc, the UK's largest food group.

Household disposable income spent on food in Australia … Early 20 th century – 33% 1970’s - 20% Today % Similar in other western nations Julian Cribb

Food has never been cheaper

Why are less people working in food production? Financial returns? Working conditions / lifestyle? Choosing to live in cities? Perceptions of Agriculture in the community?

Labour force stability 1 in 4 workers has been with their current employer for less than a year. 1 in 2 has been there less than 5 years. US Agribusiness (2007) > 30% of agribusinesses had employee turnover over 20% …

# of Jobs US Department of Labor estimates that today’s learner will have jobs by the age of 38…

Generation Y (born after 1980) >20% of the workforce, By 2020 will be 42% Demand more flexibility Careers a series of 2 to 3 year chapters Adaptable, innovative and unthreatened by technology, resilient, talented and committed, Impatient, disrespectful, image driven, blunt and sceptical...

Ag Graduates in Australia “Professor Roush reports that there is a market for about 5,000 graduates within Australia, but only about 800 students are graduating per year.” Source: The Crawford Fund, Media Release 6 April 2011

Awareness - Primary School

PICSE – Secondary school

University Career Fair

Graduate Development Program 12 months equipping graduates with skills and knowledge to prepare them for a career in field-based agricultural research...

Graduate Development Program

Change is getting quicker The amount of new technical information is doubling every 2 years

Coping with such change Need some Gen Y people Understand what drives them

Productivity growth in US agriculture over the past 50 years Source: Professor Luther Tweeten of Ohio State University

The Solutions (Julian Cribb) Double Ag R&D to $80bn globally pa Invest $80bn to share the knowledge across 1.8 billion farmers Educate people about what food costs Food prices must increase

Do you support the lower price options? Coles – milk Chinese imports Pharmaceutical – generics Agchem generics Other goods and services

Summary Spread the word –“Market “ the importance of food production –Help the media spread good news stories Encourage and recruit new people –Provide support and training Partner with those that support the future

From Julian Cribb “Farmers, and the scientists who serve them, are today the most important human beings alive. The world has forgotten this. It needs to be reminded.” The final word