agito - annual report 2010

AgITO Annual Report 2010 | 1

AnnuAl report 2010

www.agito.ac.nz

2 | AgITO Annual Report 2010 AgITO Annual Report 2010 | 3

National Certificates achieved 4,609Credits achieved 328,329Modern Apprentices active at year end 575Trainees who trained with AgITO 12,033Māori in training with us 16%Employers with staff in training 5,091

WHo We Are Like the industry itself, Agriculture ITO (AgITO) has a long history. We’ve been helping those working in agriculture to up skill since the Farm Cadet scheme began in the 1970s.

A not for profit organisation, AgITO is one of New Zealand’s largest industry training organisations (ITO) helping more than 8000 people a year to gain the knowledge and skills they need for a productive and rewarding career. We are the top performing non-compliance based ITO in the sector.

We offer nationally recognised NZQA qualifications in industry sectors ranging from dairy to sheep and cattle, rural servicing, pork, poultry, wool harvesting and water industries.

Our qualifications are developed in consultation with industry to ensure they deliver the practical can do skills needed in agriculture today.

Key outcomes

visionOur vision is to be world class at developing people for our industries.

missionOur mission is to deliver ‘can do’ people to grow productivity, profitability and sustainability within our industries:

› Ensuring world-class industry training for the future, today › Developing the 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

› Collaborating strongly with industries to influence government policy and funding.

contentsWho We Are 2

Key Outcomes 3

What We Do 4

How We Do What We Do 6

Chairman’s Report 12

Chief Executive’s Report 13

Balanced Scorecard 14

Corporate Governance and 16 Representation

Key Achievements 2010 19

Industry Good Activities 31

Sector Reports 35

Agriculture Services Ltd 51

Financial Reports 53

Organisational Information 59

CMYK logo

EGG PRODUCERSFEDERATION OF NZ

POULTRY INDUSTRYASSOCIATION OF NZ

Funded and supported by



WHAt We DoAgITO operates under the provisions of the Industry Training Act 1992. The Act requires that an industry training organisation effectively and efficiently facilitates workplace learning for people in employment by:

› Setting national skill standards for the industries they represent

› Embodying these skill standards in unit standards and national qualifications

› Providing information and advice to trainees and their employers

› Developing appropriate training arrangements for industry

› Arranging for the assessment of trainees

› Monitoring of training quality

› Providing leadership to the industry on skill and training needs1.

Government AnD tec priorities for proviDers AnD itos In addition to fulfilling AgITO’s statutory roles, the Tertiary Education Strategy (TES) 2010-15 outlines Government expectations of focus areas for both training providers and industry training organisations.

These priorities are:

› Increasing the number of young people (aged under 25) achieving at Levels 4 and above

› Increasing the number of Māori students enjoying success at higher levels

› Increasing the number of Pasifika students enjoying success at higher levels

› Increasing the number of young people moving successfully from school into tertiary education

› Improving literacy, language, numeracy and skills outcomes from Levels 1 to 3

› Improving their educational and financial performance

› Strengthening research outcomes.

1 Refer to the Industry Training Act 1992

Trainees in training by age

38% 24yrs and under

19% 35-44yrs

29% 25-34yrs

14% 45yrs+

67% European

8% Not stated

8% Other 1% Pacific Island

16% Māori

Trainees by ethnicity

SectorTrainees Credits achieved Completed programmes

2009 2010 2009 2010 2009 2010

Dairy 7,093 6,945 254,233 211,011 3,561 3,483

Sheep & Beef Cattle 872 944 26,290 23,665 236 280

Wool 1,592 1,453 44,591 23,393 525 609

Pork 71 44 951 935 10 3

Poultry 185 197 4,509 3,005 89 56

Rural Servicing 440 355 9,344 4,251 108 122

Pest Management 516 569 6,859 5,743 - -

Water 842 815 21,758 25,545 197 181

sector results



HoW We Do WHAt We Doset nAtionAl stAnDArDs AgITO sets the national skill standards for the agriculture, rural servicing, animal care and handling and water industries. These include a number of sectors; pastoral agriculture, pork, poultry, wool harvesting and pest control.

As a Standard Setting Body (SSB), AgITO partners with our industries to identify the skills and learning needs that will best contribute to achieving their goals and objectives. The identified skills and knowledge are embodied in nationally recognised qualifications which are designed to provide appropriate learning and development at five levels, ranging from supervised labour through to strategic management.

The setting of national qualifications by AgITO helps ensure that industry skill standards are reflected across the wide range of tertiary providers. This is because any accredited provider can offer qualifications registered on the New Zealand Qualifications Framework (NZQF).

Arranging quality training and assessment

Industry training is for those employed in our industries and is directly relevant to the skill needs of learners and their employers. This means that most of the learning and assessment occurs throughout a normal work day, with the remainder taking place in off job training or classes. AgITO facilitates this training by working directly with employers and managers in workplaces to help them assess the capability and competency of their staff and through contracting tertiary education providers to deliver training and registered assessors to assess it.

AgITO’s standard setting role therefore involves not only setting the standards but also ensuring the standards are being met consistently by all who have been accredited to deliver and assess them. We do this through moderating providers and assessors.

There are nearly 300 providers nationally who are accredited to provide some of the standards within the 44 domains we manage. These include schools, private training establishments and polytechnics. Moderation results are reported to the New Zealand Qualifications Authority (NZQA) and help inform our own ongoing quality assurance processes.

In late 2010, AgITO launched a new quality assurance initiative. AgExcel is a quality mark that recognises and rewards training providers who deliver superior quality agricultural training. It bridges the gap between basic quality assurance standards and the delivery of training and education that meets industry requirements. The quality mark is endorsed by AgITO's industry partners DairyNZ and Beef + Lamb New Zealand.

Training providers must meet a rigorous set of quality assurance criteria to secure the quality mark. The criteria emphasise the quality of the education systems and processes used by the training provider and the capability of tutors delivering the training, including their ongoing professional development.

Training providers awarded the quality mark are able to distinguish themselves as leading educators. AgExcel enables prospective trainees, their parents and employers to identify high quality agricultural training providers and make a more informed choice about training.

Agexcel

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0 2003 2004 2005 2006 2007 2008 2009 2010

Level 2 Level 3 Level 4 Level 5

Training agreements by qualification level



80%

70%

60%

50%

40%

30%

20%

10%

0

Completion rates by sector

Shee

p &

Bee

f Cat

tle

Pest

Man

agem

ent

Rura

l Ser

vici

ng

Dai

ry

Woo

l

Pork

Poul

try

Wat

er

leADersHip The Industry Training Act 1992 requires ITOs to provide leadership within the industry on matters relating to skill and training needs by:

› Identifying current and future skill needs

› Developing strategic training plans to assist the industry to meet those needs

› Promoting training that will meet those needs to employers and employees.

Identifying current and future skill needs

AgITO has a deliberate focus on acting now to ensure the future resource needs of our industries can be met. We do this through our Futures Research project, which seeks to identify key trends and drivers in New Zealand’s water and agriculture industries over the next 20 years. We have also developed a ‘Building Human Capability in Agriculture’ strategy that is being rolled out through our new multi-stakeholder Agriculture Education and Training Policy Group.

AgITO is committed to the ongoing review and testing of our qualifications to ensure they meet the needs of industry and remain relevant, fit for purpose and achievable. This occurs at a local level through our regional committees and at a national level through strategic planning with our industry funders.

AgITO provides our sectors with advice about education and training issues, assisting them to develop appropriate strategies that address their skills needs. This involves working with the sector to identify current and future human capability requirements and providing ongoing assistance to develop those capabilities.

Developing strategic training plans

An analysis of relevant industry strategies has identified a set of common priority areas:

› Improving the perception of the industry

› Developing strong leadership within agriculture around human capability matters

› Ensuring the right people are matched to the right roles

› Providing appropriate training programmes for all those who are engaged in agriculture

› Achieving and maintaining sustainable productivity gains from the people working in the industry, through learning and development

› Developing and maintaining a learning culture in the industry

› Improving skill levels and qualification completions

› Increasing the number of AgITO trained operational managers (at Levels 4 and 5).

These priorities are addressed in the AgITO strategic plan and are key influencers of new initiatives. AgITO reports quarterly to our funders on measurements related to these areas.

We also engage with our funders and other organisations to address more specific training issues. Initiatives that have resulted from this engagement include the ‘Building Human Capability in Agriculture’ strategy and our ‘Literacy and Numeracy’ strategy.

Promoting training that will meet the needs of employers and employees

AgITO training advisers play an integral part in promoting training to employers and their employees. Our national marketing teams and our regional committees assist with the promotion of this training.

Key measurements of this activity are the number of trainees and employers new to AgITO, credit achievement, qualification completion rates and numbers of returning trainees.


2009 2010


farm training plansIn late 2010, AgITO introduced the Farm Training Plan (FTP). The FTP is a tool that will help farm owners and managers assess the training needs of their business, identify skills gaps and create individual training plans for their staff that are tailored to their business needs. The whole team from farm assistants through to the owner or manager are included in the plan.

Working with AgITO’s training advisers, farmers use the FTP to rate core skill levels of each member of the team. Appropriate individual and whole team training to address any skills gaps is then planned out for the next 12 months. At the end of the 12 month period the FTP is used to reassess skill levels and show how training has helped improve the skills of those on farm.

Employers are already reporting to us that they now see training is an essential part of managing a successful business. The value training adds to the farm becomes clear through identifying skills that need to be developed to maximise the potential of the farm business.

Farm name:

Name:

Employer name:

Herd size:

Role on farm:

Supplier number:

Farm size (ha):Courses

People management

• Leadership

• Training staff

• Building a productive team

• HR issues

• Legal responsibilities

Resource management

• Farm policies

• Environmental

• Health and

• Risk

• Effluent

Seasonal management

• Mating and calving plans

• Fertiliser plans

• Pasture management

• Animal health plans and procedures

Business management

• Financial budgeting

• Wealth creation

• Leadership

• Risk management

• Systems and procedures

Date reviewed:

$ -

Farm Training Plan – Skills Analysis (Farm Manager, Operations Manager, Sharemilker, Farm Owner)

MonthCost

Farm objectives:

(next 12 months)

Career goals:

Recommended trainingCompleted

tony

0

Range of skills

(Select skills required to perform role)

Skills to be developed

Review of skills

In progress

Next course

Comments/notes:

Date updated:

Total cost

Training course


new Zealand trade AcademySecondary school students have historically accessed AgITO training solely through undertaking the learning and assessments their teachers have selected – they could not be industry trainees, per se.

An amendment to the Education Act in 2010 allowed for trade academies to be established and for students to simultaneously enrol in secondary school and industry training.

AgITO, in partnership with the NZ Horticulture ITO and FITEC, successfully obtained one of nine approvals granted nationally to establish a trade academy. The New Zealand Trade Academy is a joint agriculture, horticulture and forestry initiative for Year 11 to 13 students.

The New Zealand Certificate in Primary Industries, Level 1, has been developed specifically for this trade academy. Its delivery relies on participants being taught by their teachers and through learning in workplaces.

The Academy will provide opportunities for young people to:

› Gain experience in the workplace and receive a qualification for it

› Have a choice of which industry they will specialise in

› Gain all three NCEA qualifications and the New Zealand Certificate in Primary Industries, Level 1.


In 2010, the year after the global financial crisis, we still saw some reticence from the rural sector to engage in training as pressure remained on discretionary spending.

In 2009 we implemented a new field structure around hub offices, providing more support to our training advisers through the introduction of our customer relationship adviser role. In 2010 this new structure has shown dividends and our teams have been effective, even through a year of change.

We were slightly down on our primary Tertiary Education Commission (TEC) targets of STMs achieved and our own internal targets of credit achievements and completions. By controlling off job training expenditure and reducing travel and other costs, we were able to deliver a positive contribution to the bottom line. We also increased the total number of certificates achieved over 2009 by approximately 5%.

2010 was also the year that the Government provided strong signals about its expectations for training in the public sector. It expressed concerns over:

› Poor educational performance

› Falling cash contributions from industry relative to Government funding

› Increasing provision of low level qualifications relative to Level 4

› Lack of transparency and accountability; and

› Lack of value for money when spending from the public purse.

This provided added challenges for us. We had to take a successful organisation and deliver changes that would result in more people in training, with more credits achieved and greater qualification completions at higher levels of learning – while providing value for money, transparency and accountability.

TEC, our major funding partner, provided the policy and financial incentives for us to grasp this as an opportunity. While we finished 2010 in a strong financial position – all credit to our management team – we have huge challenges before us in 2011. We have laid the foundations for the changes required to deliver what our stakeholders require.

We must always be aware that a substantial

proportion of our funding is from the public purse. We have maintained a strong cash position throughout the year and our cash reserves are comfortably within the expectations of TEC – a balance between what is needed to responsibly govern the operation, while not hoarding public funds.

We are very fortunate in having industry partners that realise the value in training. DairyNZ, Beef + Lamb NZ, Water NZ, NZPork and the Poultry Industry Association of NZ are cornerstone supporters and funders of the ITO.

We met regularly with our funders and other stakeholders throughout the year and their message was simple: how can we deliver better training outcomes with the limited resources available. It is an ongoing challenge for us to meet TEC’s expectations for industry cash contribution. At approximately 23% we are at the lower end of that acceptable to our Government funders and we must seek ways to encourage industry to increase its financial support. An ever present option is to demonstrate the value proposition of training through initiatives such as our Reporting Value Added (RVA) project, to support an increase in trainee fees.

The messages we are getting from all our stakeholders are consistent. What we as a Board have been grappling with is how we can deliver more for less.

As part of our considerations, we have been working closely with the primary sector group of ITOs to find ways to share qualifications, share resources, understand what best practice really is and to collaborate to deliver on our commitments together. We have had successes and positive, closer relationships have developed. This bodes well for the future as all Boards grapple with how they will rise to this challenge.

We do not believe there is a will within Government to mandate structural changes to ITOs, however it has, through TEC, stated that it believes for the size of our country we have too many ITOs and qualifications and there is an opportunity for rationalisation. TEC is therefore supportive of ITOs looking at joint ventures and other co-operative arrangements including mergers and amalgamations with each other. We are working our way through these issues and can provide assurance to all of our stakeholders that any future arrangements will preserve the access to and value of training. Simply put, we must provide more for less.

cHAirmAn’s report

Cliff Tipler Chairman

cHief executive’s report

Welcome to this 2010 annual report. Over the past year the ITO has faced a number of challenges and I am pleased to report that the time and effort we have invested in strengthening our business model means we are able to move forward into a tough economic climate in 2011 with robust systems in place.

In 2010 we continued the realignment of our business as part of our work to ensure we are operating as efficiently and effectively as possible. As part of this our Wellington based national office structure was rearranged to support our new business model operating in the field.

The introduction of a new total information management system (TIMS) presented internal challenges for the organisation as our team came to grips with the changes this required. In addition we faced an altered funding environment as the TEC introduced significant changes to the way industry training is funded. As an organisation we fully endorse these changes – they will ensure better outcomes for industry and effective spending of tax payer money.

Inevitably the impact of these new systems resulted in a loss of productivity for a short period. This combined with an organisational focus to improve qualification completion rates, the continued impact of the recession and a slow uptake of training meant we fell short of achieving our funding targets by 3%. Due to careful cost management we were still able to achieve a small surplus.

TEC and industry strategy places emphasis on the need to achieve more people in training at higher levels of learning. The ITO has traditionally been associated with cadet level learning so in 2010 we rebranded as AgITO in an effort to raise our profile and strengthen our position in the market. The rebrand provides us with the opportunity to build a strong profile for the professional business management qualifications we offer and we will continue our efforts in this area in 2011.

A key part of our success continues to come from our collaboration with our industry partners. In 2010 a number of initiatives were taken to ensure ITO activity is contributing to and aligned with industry strategy. I would like to acknowledge and thank our industry funders – DairyNZ, Beef + Lamb NZ, NZ Pork, the Egg Producers Federation and the Poultry Industry Association of NZ – for their continued financial support and collaboration.

AgITO supported the merger of Lincoln and Telford. As CEO I am a member of the Advisory Committee established to assist the transition of Telford Rural Polytechnic into the university. This is an important development towards the integration of vocational learning with academic learning in New Zealand agriculture. We are working closely with Massey and Lincoln universities on developing a single agribusiness diploma for New Zealand and we are a supporter of the Centre of Excellence created as part of the Dairy Primary Group Partnership funded project.

I must acknowledge the support of our employers without whom the vocational education system would not exist. Research proves industry training achieves the best results when three things occur; employees are keen to learn and understand the application of their learning to the workplace, the training is of good quality and the employer is engaged and prepared to actively support the trainee in applying on and off job learning.

As demands increase on ITOs for quality performance we will be working closely with employers and trainees to ensure this happens.

The key to the ITO providing a successful service is having staff who understand the industry and are committed to the vocational training process. I would like to thank our team for their passion and dedication which exists through our whole organisation.

Kevin Bryant Chief Executive


Strategic Goals Action Plans/Measures2007

Actual2008

Actual2009

Actual2010

Actual2011

TargetComments

ope

rAti

on

Al

›S

yste

ms

and

pro

cess

es

› We have systems and processes that

best support our changing business

Standard Training Measures (STMs) meet budget 101% 105% 104% 97% 100%

Operating surplus 4.09% -0.44% 2.83% 0.33% 2.80%

Training cost/STM $2,651 $2,712 $2,812 $2,353 $2,355 STM funding is $2,919 per STM

Total costs/STM $4,210 $3,910 $3,962 $4,079 $4,222 STM funding is $2,919 per STM, increased due to

lower training numbers

Support costs as a proportion of total costs 21% 17% 15% 13% 19% Core support services, finance, IT, administration

and HR

Productivity Index (credits achieved/total cost

per 1000)

12.49 15.76 16.25 13.76 16.79 Fewer credits achieved compared to the total costs for

the ITO

Industry contribution 22% 22% 22% 23% 25% Industry contribution to training is leveraged by

Government contribution through TEC

cust

om

er ›

Pro

du

cts

and

sp

eed

to

mar

ket

mee

t cu

sto

mer

nee

ds

›In

crea

sed

val

ue

of

cust

om

er

rela

tio

nsh

ips

› Understanding our market needs/

outcome focused learning (OFL)

› Customers value our products

› Effective channels to market

› Provider management

› Value of the brand

Programme completions 23% 36% 36% 43% 45% This is full completions including Limited Credit

Programmes (LCP’s)

Credit achievement 253,449 350,372 370,490 324,042 360,493

Number of trainees in training/full time equivalent

staff member (FTE)

56 58

Mix of levels of study 29% 31% 33% Proportion of trainees studying at Level 4 and above,

a priority for government

Speed of qualifications to market 15 months 12 months 12 months 12 months 12 months Ongoing effectiveness of development function

Number of courses 690 948 931 896 787

Average number of people in courses 9.3 9.4 8.5 10 Effectiveness of recruitment into courses, minimum

should be 10

Customer satisfaction survey >80% 95% 85% 85% 85% Level of satisfaction of employers and employees

peo

ple

›H

igh

ly d

esir

able

pla

ce t

o

wo

rk

› Attracting new people

› Retaining people

› Training and developing people

› Leading and communicating with

people

% Ranking in Best Work Places (BWP) 37% 38% 37% 58% 30% Currently in 2nd quartile

Employee turnover 24% 18% 8% 18% 13% Expected to be higher due to realignment in

Wellington

% of salaries spent on training per year 4% 3% 2% 3% 3%

% of staff who feel engaged with AgITO 40% 32% 38% 33% 60% Lower than expected engagement a sign of

nervousness in current environment and a reflection

of internal structure changes

BWP leadership score >80% 74% 73% 80% 77% 80% Indication of how strong staff feel their leadership is

com

mu

nit

y

› Environmental footprint

› Develop future leaders in the rural

and water sectors

› Community support

Environmental footprint monitored CO2 emissions

per FTE

9 9 7.8 7.8 7.8 Higher than expected air travel for the year

Community events 44 38 36 36 35 Includes AgriAwards, Ahuwhenua Trophy, NZ Dairy

Industry Awards, Water Industry Trainee of the Year,

Skills Days and a number of other trainee awards

People involved in leadership development activities 59 64 55 65 65 Reflection of investment in development of

individuals with potential in the sector

Investment in industry good activities including

internal time

$604,940 $474,000 $347,000 $470,000 Expenditure reflecting focus on areas where we

really make a difference

bAlAnceD scorecArD



corporAte GovernAnce AnD representAtion AgITO evolved from the Federated Farmers Cadet Scheme which was initiated in the early 1970s. The Cadet Scheme became the ITO under the name of FETA in 1992 with the passing of the Industry Training Act. The Industry Training Act removed the ITO from any form of legal ownership by an industry or educational body, creating a stand alone organisation with responsibility to its industries to meet skill needs through training.

The ITO was formed as an incorporated society and our Constitution and elective structure recognise the importance of industry wide representation in the governance of the ITO. The constitution recognises two types of members;

› Individuals – who are actively engaged as regional and industry committee members and,

› Corporates – being organisations that represent an industry that has employees with AgITO training agreements.

There are three pathways for industry to participate in the corporate governance of the ITO;

› Regional Committees – 16 regional committees operate at a local level, providing an important link between AgITO management and local communities. Their members are a wide cross section of employers, employees and Iwi involved in agriculture, with a strong interest in training. Reporting directly to the AgITO National Board, the committees provide recommendations and feedback about qualifications and training

needs, organise our AgriAwards and Skills Days and promote training in their local areas.

Each regional committee has 6 – 15 members and a regional committee representative sits on the AgITO National Board. They meet three times each year.

The Chairs of the regional committees represent their members in the process to elect Directors to the AgITO National Board.

› Industry Committees – Our industry committees represent industries who do not have easily accessible regional structures or who tend to operate in a national and corporate manner, for example the water and agrichemical sectors. The industry committees meet as needed but at least once a year.

They provide information on industry needs and are an essential part of the qualification consultation process. The industry committee chairs represent their members to elect Directors to the AgITO National Board.

There are three industry committees (Pastoral, Water, Vet Nursing and Para Veterinary) and two sub-committees (Pork and Poultry).

› Corporate Members – Our corporate members provide a governance pathway primarily for industry good bodies to be represented at National Board level. This allows alignment between industry strategy and targets and the activities of AgITO. Water NZ, DairyNZ and Beef + Lamb NZ are corporate members.

AgITO Regional Committee Chairs – Front row seated (L-R): Peter Wapp (Manawatu), Carwyn Monteith (Hawke’s

Bay), Gaynor Tierney (Waikato), Rachel Roadley (Mid Canterbury), Phil Vallance (BOP). Standing (L-R): Chris Hurlston

(Central Plateau), John Wauchop (Eastland), Colin van der Grest (West Coast), Jason Scown (Taranaki), Colin Muir

(South Canterbury/North Otago), Damien Dixon (Northland), Leo van den Beuken (North Canterbury), Michael Berkers

(Southland), Ted Ford (Top of the South), Grant Love (North Otago), Linda McGinty (Manawatu), Suzanne Butcher

(Wairarapa)

Strategic Governance

The AgITO National Board meets a minimum of four times each year and, in addition, Board members are encouraged to attend the Regional Committee Chair meetings, held in Wellington three times a year. Board members serve three year terms and may be re-elected or re-appointed. All newly elected Board members undergo a five day training course with the NZ Institute of Directors.

The regional and industry committees elect three Directors to the AgITO National Board and the corporate members elect three Directors at the AGM. The elected directors appoint up to four more Directors, ensuring the Board has the required expertise and skill. The appointees do not have to be members as set out in the Constitution.

One of the four Directors appointed by the Board collectively represents the employees of AgITO’s industries to meet the requirements of clause 10 (1) (d) of the Industry Training Amendment Act 2002.

Representing education, industry, employers and trainees, the Board sets the strategic direction of

the organisation. This is guided by an annual cycle of reviewing and gathering information, planning and setting objectives. The resulting annual plans and budgets for the following year set out how we are going to achieve our objectives and what resources are available.

As well as setting the strategic direction, the Board is tasked with ensuring AgITO has systems and processes that enable sustainable performance. It is also ultimately responsible for financial control. It manages these duties through policies and procedures covering finance and expenditure, its Audit and Remuneration Committees, reports to stakeholders, operational measures and management systems.

The Audit Committee sets an audit plan in October that auditors PriceWaterhouseCoopers complete by the following May. Examples of reporting include quarterly and annual reports, trainee information management systems and our Balanced Scorecard.

AgITO BOARD

REGIONAL COMMITTEES

Northland

Waikato

Bay of Plenty

Central Plateau

Taranaki

Manawatu/Whanganui

Eastland

Hawke’s Bay

INDUSTRY COMMITTEES

Agriculture

Pork

Poultry

Water

Vet Nursing and Para Veterinary

BOARD COMMITTEES

Audit

Remuneration and Appointments

Investment Plans

Honorarium

Wairarapa

Top of the South

West Coast

North Canterbury

Mid Canterbury

South Canterbury/ North Otago

Otago

Southland


Key AcHievements 2010

AgITO Board – Front row (L-R): Barbara Kuriger, Cliff Tipler (Chair), Don Seath (Deputy Chair), Leon Black.

Back row (L-R): Wayne McLaughlan, Chris Kelly, Murray Linton and Peter Langford. Absent: Tanira Kingi

CLIFF TIPLER (Chairman) – Cliff joined the AgITO National Board in 1999, representing the water industry and the development of water industry training. He was elected deputy chairman in August 2002. In June 2009 he was elected chairman. Cliff is a past president of the New Zealand Water and Waste Association. He is a senior principal and the business development manager of URS New Zealand Limited in Auckland, practising as a water and waste water consulting engineer.

DON SEATH (Deputy Chairman) – Don joined the AgITO National Board in 2000. He is a member of the Institute of Directors, chairman of the Audit Committee and the Industry Committees of AgITO and director of Agriculture Services Ltd (ASL). Former Fonterra shareholders councillor, director of the New Zealand Dairy Group and Dairy Meats NZ Ltd. Don is currently farming lifestyle blocks and has family dairy farming in the Waikato.

TANIRA KINGI – Tanira joined the Board in 1998. He is a science advisor for AgResearch, a director of NZQA, chair of Waerenga-Pukahukiwi Ltd – the largest dairy farm in the Rotorua catchment and chair of the Rotorua Primary Sector Collective. Tanira is affiliated to Te Arawa and Ngati Awa.

CHRIS KELLY – A former veterinarian, Chris joined the AgITO National Board in 2005. He is the chief executive of Landcorp Farming Ltd and former chairman of AgVax Developments Ltd. He is a member of the Massey University Council.

WAYNE MCLAUGHLAN – Wayne joined the AgITO National Board in 2006 as a representative for employees working in the industries covered by AgITO. Wayne represents

the Amalgamated Workers Union as a full time union organiser who has thirty years experience. He is a member of the Institute of Directors. Wayne is very passionate about ITO training and its benefits and is a qualified tradesperson through his own apprenticeship training.

MURRAY LINTON – Murray joined the AgITO National Board in 2007. He is a Fonterra Shareholders Council member and former Bay of Plenty AgITO Regional Committee chairman. He farms 500 dairy cows with his wife Fiona.

LEON BLACK – A director of the Meat Board, Beef + Lamb NZ and Ovita Ltd, Leon joined the Board in 2008. He farms a 330 hectare intensive sheep breeding property in Southland.

BARBARA KURIGER – Barbara and husband Louis have farmed together for 31 years and have won several farming competitions, including the AC Cameron Rural Excellence Award in 1999. They, with their family, own two dairy farms in Taranaki and hold an equity stake in a Manawatu dairy farm. Barbara is a member of the DairyNZ Board and chairs the Dairy Industry Awards Trust. She has also been a member of the Fonterra Shareholders Council including Governance and Ethics Committee chair and chaired the Livestock Improvement National Council for two years.

PETER LANGFORD – Peter joined the Board in 2009. He was born and raised on his parent’s dairy farm in Golden Bay. Prior to returning to farming, he worked as contractor, agriculture tutor, sales/marketing executive and company branch manager. Peter has chaired Karamea Area School’s Board of Trustees and the AgITO Regional Committee. Peter and his wife Debbie currently farm in Karamea.



leADersHip AnD collAborAtion AgITO takes a leadership role in education for our industries and believes leadership is an essential part of developing human capability on farm. This extends beyond education to engagement with key industry and government stakeholders, enabling the ITO to influence decisions and policy for the benefit of the industries we represent.

During 2010 AgITO participated in a wide range of activities from industry and education forums to membership of projects and committees. Our key achievements are outlined as follows.

tHe primAry sector Group (psG) of itos AgITO, NZ Horticulture ITO, FITEC, Seafood ITO, NZITO, Equine ITO and NZ Sports Turf ITO have been working towards rationalisation and the potential merging of our activities in a way that will be of benefit to all our industries. By taking this approach in advance of any directive by TEC the group is able to further demonstrate leadership in the tertiary education sector.

pipeline The Pipeline project has been initiated by New Zealand Young Farmers and is part of a larger DairyNZ project to bring cohesiveness to human capability development in the agriculture industry. The project addresses promotion of agriculture in schools, career pathways, leadership development, mentoring and the linking of experience and qualifications. Beef + Lamb NZ, Lincoln University, Massey University and Federated Farmers are also involved in the project.

strAteGy for vocAtionAl eDucAtion The Strategy for Vocational Education seeks to address the lack of an overarching strategy for all vocational training in the agriculture industry. By developing such a strategy, industry and government will have an objective basis on which to invest in human capability development. DairyNZ, Beef + Lamb NZ, MAF, Massey and Lincoln Universities have been consulted in the development of the strategy. Promotion of the strategy as an industry plan is being undertaken. It is the intention to have the strategy universally accepted by government and industry as the blue print for future investment in agriculture education.

futures reseArcH Futures Research is important to AgITO to ensure we are in a position to have greater control of our destiny and gain the knowledge to participate in meaningful future-based conversations with our stakeholders.

Futures Research ensures that AgITO:

› Is informed and ready to respond to market, environmental, political, social and technological trends

› Has a platform on which to speak authoritatively with regard to the future needs of our industries

› Has a place at the table for Government and industry policy development.

Futures Research is supported by a database that to date contains more than 1200 articles. Articles and reports are logged in the database via a group of scanners. Weavers then meet each quarter to discuss the items and identify trends and issues that will affect the future of our industries.

2010 was the second full year for the Futures Research project. In this time we have consolidated the process, brought in external organisations and identified a range of themes that will affect the future of our industries.

The themes identified for the 2010 Futures Research Annual Report are:

› Water, or the lack thereof

› The mismatch between the human capital requirements of our primary industries and what is currently available

› Transforming our research creativity into real production

› Making choices, taking chances: New Zealand’s future in the global market.

It is important that the research is robust and covers a wide range of view points, that the debate is vigorous and that the focus is on the future. To this end a number of external organisations have been represented in both the scanning process and weaving sessions. During 2010 the following organisations participated in the Futures Research project:

› DairyNZ

› Beef + Lamb NZ

› Ministry for Agriculture & Forestry

› Ministry for the Environment

› Tertiary Education Commission

› Water NZ

› NZ Trade and Enterprise

› AgResearch.

During 2010 AgITO also introduced a weaving session for our staff. This proved to be valuable as it created an opportunity for people to think beyond the imperatives of today and this year and discuss the possibilities that the future may hold for the agriculture and water industries and their education needs. The strategic business development team also produced a comprehensive environmental scan from the futures database to assist AgITO’s strategic planning process.

Initially, external consultants Lost Ark Discoveries and McCrone Strategic were contracted to assist AgITO in establishing our Futures Research capability. However, in 2011 all facilitation and writing will be undertaken by AgITO staff. External input into the scanning and weaving processes will continue but any work will be unpaid.

“it’ll (nAtionAl DiplomA) AccelerAte your pAce tHrouGH tHe inDustry by GivinG you tHe KnoWleDGe you neeD About finAnciAls AnD tHe fArminG inDustry” brADy mitcHell - fArm mAnAGer



climAte cHAnGe projects During 2010 AgITO was involved in four Climate Change projects which were part of the MAF climate change technical transfer work plan. The ITO has been the lead contractor for two of these projects and a partner in the others.

The project to ‘Formulate an implementation plan for building climate change into long term vocational training’ was completed in June 2010. AgITO was the lead contractor for this project supported by FITEC and the NZ Horticulture ITO. In order to understand how climate change challenges could be addressed through vocational training four key messages were developed.

1. ADAPT TO PROSPER › Our climate is changing and land based

industries need to adapt to remain resilient and prosper in this changing environment.

2. GREENHOUSE GAS RESEARCH IS KEY › The options for reducing methane

emissions from pastoral farming are limited.

3. TREES MAKE A DIFFERENCE › Planting trees is an important option to

reduce greenhouse gas emissions.

4. CUT COSTS AND CARBON PRODUCTION › Land managers will need to respond

to a number of drivers for improving productivity and lowering carbon production.

From these key messages the skills and knowledge that land managers need were determined. A gap analysis of all FITEC, NZ Horticulture ITO and AgITO qualifications was completed and a process developed to ensure these gaps are addressed. This process is ongoing and is being applied to the development of new and revised qualifications.

DairyNZ was the lead contractor for the ‘Building climate change issues into land management training’ project which focused on providing a comprehensive resource for all tutors and teachers of agriculture, horticulture and forestry subjects. AgITO was responsible for reviewing the resource and ensuring that it was suitable for use as an educational tool. The resource has been distributed to all DairyNZ consulting officers for use as a climate change reference.

DairyNZ also led the project ‘Train the Trainers’. This project involved professional development of our tutor and teacher network. AgITO was responsible for arranging and facilitating five workshops for tutors and teachers. At these workshops participants were given a comprehensive understanding of the background behind key climate change messages as well as helping them to develop their capability to communicate these messages.

AgITO is currently undertaking a fourth MAF funded project entitled ‘Evaluate the current skills development and training provided for Iwi/Māori’. This project is detailed in the Engagement with Māori section of this report.

Through the climate change projects AgITO has taken an education leadership role in an area which is both complex and contentious and, at the same time, remained neutral in the whole climate change debate, by focusing on skills and knowledge that will add value to our industries.

sustAinAbility report

“tHe informAtion Will be vAluAble in AssistinG WitH presentinG tHe impActs of climAte cHAnGe on fArm business” mArK Goss - tutor

In 2008 we started measuring our environmental impact and wider sustainability performance using the Greenhouse Gas (GHG) Protocol.

We started with a carbon footprint of 9.0 tonnes of carbon dioxide equivalent emissions per full time employee (tCO2e/FTE). We identified that the largest part of our carbon footprint was as a result of air travel and vehicle usage. We set ourselves a target of 8.0 tCO2e/FTE for 2009 and through cutting back on air travel and progressively changing our fleet to diesel vehicles managed to achieve 7.8 tCO2e/FTE. For 2010 we hoped to

achieve a further reduction to 7.4 tCO2e/FTE. The actual result for the year was 7.8.

Whilst we didn’t achieve the reduction we aimed for we still managed travel and vehicle costs effectively and were able to maintain the positive position we achieved in 2009. The vehicle fleet is now almost completely replaced with diesel vehicles and we continue to manage travel costs very closely, especially through the use of video conferencing. Our aim is to maintain our footprint at 7.8 for 2011.



literAcy, lAnGuAGe AnD numerAcy AgITO has developed a comprehensive strategy

to address the problem of low literacy, language

and numeracy (LLN) skills across the industries

we represent, primarily focusing on the

agriculture sector, including wool harvesting.

Implementation of this strategy commenced in

late 2009 and was ongoing during 2010 achieving

promising results.

The strategy was developed in response to the Adult Literacy and Life Skills (ALLS) Survey, conducted in New Zealand in 2006 on behalf of the Ministry of Education in conjunction with the OECD and a range of international agencies. ALLS is an international comparative assessment that provides information about the literacy and numeracy skills of adults aged 16 to 65 years old.

In the agriculture and fisheries group:

› 55% of workers were found to have low literacy, compared to the 40% of workers nationally who have low literacy

› 61% of workers were found to have low numeracy compared to the 46% of workers nationally who have low numeracy.

LLN skills provide the essential base for building a competitive, highly skilled and productive workforce. In addition to the many economic benefits of higher literacy, language and numeracy skills, social benefits include improved health, housing and community participation.

Workplace literacy describes the skills needed for effective performance in today’s workplaces including: speaking, listening, maths, using

technology, reading, writing, problem solving and critical thinking.

The Tertiary Education Strategy 2010-2015 has a specific focus on assisting adult learners to gain the LLN skills for high level study or skilled employment. The Tertiary Education Commission (TEC) has committed to working with providers and ITOs to embed LLN in Level 1 to 3 qualifications, requiring clear pathways towards advanced trade qualifications at Level 4 and above.

Embedding is the systematic approach to building literacy and numeracy skills while also building vocational skills. The ITO is embedding LLN skills across all learning programmes as standard practice. This includes:

› Incorporating good literacy practices into resources

› Working with training providers to ensure their tutors use good literacy practices in their Level 1 – 3 programmes

› Working with employers to provide a greater understanding of LLN and its relevance in the workplace

› Establishing a mentoring programme to support ITO learners specifically in LLN.

Another significant part of the strategy is to reconnect people in our industry with ongoing training and education and support them to gain educational credit, not only in relation to the industry based learning programmes they are undertaking but also with their NCEA (school) qualifications.

This is our Value Added Training (NCEA) project. “trAinees GAin quAlificAtions AnD confiDence in tHeir oWn leArninG Abilities, fArmers GAin employees cApAble of better performAnce on fArm.” miKe styles – Agito lln ADviser



vAlue ADDeD trAininG (nceA) project AgITO has developed a new initiative to enable

learners to retrospectively gain their NCEA

qualifications using the credits they have

achieved through our training along with some

additional LLN learning requirements.

In the five months the initiative has been active, AgITO has helped nearly 4,500 trainees in the water and agriculture industries to gain their NCEA qualifications. We are the first industry training organisation to take this step.

Using NCEA as a vehicle for improving LLN gives this work an identity that avoids the stigmas of literacy and numeracy deficiencies.

Reconnecting trainees with ongoing education helps us meet our commitment to improve credit achievement, qualification completion, and qualification progression rates.

In addition to supporting these goals, embedding NCEA into our programmes demonstrates our responsiveness to industry stakeholder expectations and the achievement of their goals.

Supporting trainees to achieve NCEA Levels 1, 2 and 3 distinguishes us as an ITO with vision, that recognises the importance of investing in the

trainee as an individual.

As an example of the success of those NCEA/LLN pilots, feedback from farm managers at various levels notes improvements in productivity from the pilot graduates. The most noticeable improvements have been in money saved because the staff now understand concepts like:

› Ratios (e.g. teat spray)

› Measurement and the difference between hectares and acres

› Filling in mastitis charts, diaries and reports accurately

› The importance of reading (and comprehending) chemical labels and working out weights and averages.

Working with our trainees to enable them to achieve NCEA has had an incredibly positive impact on their confidence and self esteem. Restoring confidence means they can take a larger role in the industry, stay longer and go further, knowing they are capable of succeeding in their chosen career.

Many people who were not motivated in a school setting are much more motivated in a setting where the learning has a vocational context and therefore they are much more likely to achieve.

james mcDiarmid – assistant herd manager, Takapau

Originally a city dweller from Auckland James McDiarmid is now the assistant herd manager of a Takapau dairy farm in the Hawke’s Bay.

Bouts of illness meant he left school without a qualification, but his participation in AgITO’s literacy and numeracy pilot has enabled him to earn his NCEA at Levels 1 and 2.

“It’s awesome,” James says when asked how earning his NCEA qualification through AgITO makes him feel.

James attended a specially designed block course where he completed theory work towards his National Certificate in Dairy Farming, Milking, Level 3, and his Level 2 Staying Alive certificate, as well as his NCEA.

“I had to do a few assessments – a couple of maths papers and a couple of English papers at the course,” he says.

“They were always there to help if we needed it. The tutors thought outside the box and were very open minded and experienced.”

James has special praise for his AgITO training adviser, Mia Jane, and project leader, Gloria McGirr (AgITO literacy adviser). “They pushed us,” he says. “They are very good at what they do.”

Around 15% of people leave school without any NCEA qualifications. “Agriculture has mistakenly been seen as a low skilled industry, when in fact it is a dynamic, sophisticated industry that increasingly requires skilled and highly trained staff,” Mike Styles, AgITO literacy, language and numeracy adviser says.

Many farm staff must gain higher qualifications in management and supervision in order to move up the career ladder.

“Research evidence is conclusive – people without the basic literacy and numeracy skills required to engage in ongoing learning are often excluded from promotion at work and participation in society more widely.” says Mike.

“Qualifications are becoming increasingly important in the agriculture sector. If three people apply for a job, the successful candidate is likely to be the one with some qualifications alongside his or her name. NCEA is crucial to this”.

James wants others in his industry to take up the opportunity to gain their NCEA through the ITO. “I’d push it,” he says. “I’m more confident now and I hope people open their eyes up to what they can achieve.”

“i KnoW my stAff Are tHrilleD WHen We present tHem WitH tHeir certificAtes. i WoulD liKe to conGrAtulAte tHe WAter inDustry trAininG orGAnisAtion for mAKinG tHis HAppen”. DeAn HAmmonD - nApier city council



enGAGement WitH māori

Governance

AgITO’s strategic relationships team is working closely with Māori organisations – the Federation of Māori Authorities (FoMA), the office of the Māori Trustee, Te Puni Kokiri, NZ Trade and Enterprise (NZTE) and other aligned organisations to look at an appropriate governance training package designed to meet the needs of Māori in agribusiness, especially (but not exclusively) for trusts and incorporations.

The work is overseen by a working group chaired by a member of FoMA. The work to date has clearly identified the need to embed Te Ao Māori within learning programmes and to investigate tailoring the delivery of training. As at December 2010, three informal pilots and one formal pilot have been completed by an external contractor and will inform our plan for 2011.

It is proposed to seek external resourcing in 2011 and the launch of the training package(s) is expected to take place in September/October 2011.

Climate Change

AgITO is currently undertaking a fourth MAF funded project titled ‘Evaluate the current skills development and training provided for Iwi/Māori.’ This project has four phases:

1. Confirm the appropriateness of the Climate Change Key Messages Framework for the management of Māori/Iwi land.

2. Establish what land based skills development and training is occurring amongst collectively owned Iwi/Māori businesses and who is conducting this training.

3. Evaluate training identified in the previous phase against the uptake including barriers, regional differences in uptake and delivery and the gaps in training. This phase is being undertaken through eight case studies of Māori owned land based businesses.

4. Draw conclusions and make recommendations for the future based on findings.

This project has been undertaken in partnership with FoMA and in consultation with the NZ Horticulture ITO and FITEC. A small team has attended seven Hui o Rohe, at which we consulted with Māori land owners to gauge their perceptions of climate change, how it will impact on them and what their needs are for information, knowledge and education. Phases one and two of the project were completed in 2010. This information has been used to formulate a case study approach to phase three which is being undertaken during April and May 2011.

The project is due for completion in June 2011.

Working with the Primary Sector Group of ITOs (PSG)

As a direct result of developing cross sector relationships, the PSG ITOs have been developing training packages in consultation with Te Puni Kokiri that will lift Māori participation and completion in training. This aim is to pilot at least two initiatives in April 2011.

An estimated 1.3 million hectares, or 4.9% of

Aotearoa New Zealand’s total land area, is under

Māori ownership and governance. The estimated

$6 billion of land based assets managed and

owned by Māori is significant to New Zealand’s

agriculture industry.

AgITO recognises this significance with its strategic relationship role, through which we engage directly with various agencies, Māori farming entities and Māori representative organisations to determine their needs and how we may help to meet them.

Ahuwhenua Trophy BNZ Māori Excellence in Farming Awards

AgITO, Te Whakangungu Roopu Ahuwhenua Ahumahi, supports the Ahuwhenua Trophy BNZ Māori Excellence in Farming Awards and, as a bronze sponsor, continues to build sustainable long term relationships with Māori agribusiness entities.

The awards acknowledge and celebrate business excellence amongst Māori in New Zealand farming.

The competition alternates each year between the dairy and the sheep and beef cattle sectors.

The Waipapa 9 Trust were the winners of the 2010 Ahuwhenua Trophy for Excellence in Dairy Farming. AgITO enjoys a multi-tiered relationship with the Waipapa 9 Trust at all levels including governance, management and operations. The Waipapa 9 Trust, through its management practices, is an avid trainer of its employees and is also the host of a pre-entry/apprenticeship training unit based on its property.

In recognition of our commitment to training AgITO is involved in assisting in the development of a Young Māori Trainee/Cadet award that is proposed to be launched in June 2011 at the Ahuwhenua Trophy finalists awards ceremony.

AgITO now participates in the judging processes of the Ahuwhenua competition, confirming our organisational commitment to developing and recognising Māori in farming.

our people – oku iwi He mana ohooho our land – oku Whenua He mana takatu our future – Whakamaua ki a tina

2010 Ahuwhenua Trophy winners. Front row (L-R): Mrs C Jackson, Craig Jackson (Manager, Takapau, Waipapa 9),

Ngarau Tarawa (Trustee, Waipapa 9), Claire Chapman (AgITO), Tohu (Dawson) Haa (Chairman, Waipapa 9), Matt and

Louise Pepper (Sharemilkers, Okuhaerenga) Second row (L-R): Peter MacGregor (AgITO), Cliff Tipler (Chairman, AgITO),

Kevin Bryant (Chief Executive, AgITO), Nick and Leonie Pepper (Sharemilkers, Marae Manuka) Back row (L-R): Dalwyn

Tarawa, Abe Seymour (AgITO). Photo By Alphapix.

“Agito trAininG reAlly HelpeD me. WHen people founD out i WAs DoinG business mAnAGement stuDies it WAs A biG plus.” WAyne frAser - fArm mAnAGer



inDustry GooD Activities

2011 Goals

› Continue to work with PKW to develop tailored farm training plans and training solutions.

› Complete remaining pilots for Te Ao Māori governance training and roll out a final training solution.

› Continue to build the PSG ITOs Māori capability relationships with government and non-government agencies.

› Build up Māori participation and success in training.

› Tailor LLN solutions to meet specific requirements of Māori trainees.

› Continue with our sponsorship of the Ahuwhenua Trophy for Farming Excellence.

AcHieveD

pArtiAlly AcHieveD

pArtiAlly AcHieveD

pArtiAlly AcHieveD

AcHieveD

pArtiAlly AcHieveD

pArtiAlly AcHieveD

Goals and Outcomes

Design and agree a training plan for Ngati Porou inclusive of agriculture, horticulture and forestry with assistance from Te Puni Kokiri and other aligned entities.

The joint venture with Ngati Porou, Skills Active and AgITO has resulted in the Iwi supporting the Ruatoria Māori Farm Managers training course. In addition, it is recognised that there needs to be a more collective and collaborative ITO approach to addressing the training needs of the region.

Assist Turanga Ararau with recruiting and mentoring planning.

There is an identified need for a more collaborative approach to be applied in the area across the ITO sectors.

Work with Paranihi ki Waitotara Inc (PKW) and assist in design of an agricultural training solution for the Iwi of Taranaki.

Continuing into 2011. Agreement reached to formalise the relationship in 2011 with input and guidance from AgITO territory managers.

Work with Māori representative organisations and Government and non-Government agencies to develop governance training strategy.

FoMA, NZTE, TPK, MTO are involved in a formal working group to assist the development of an appropriate training programme for Māori in agribusiness. This goal continues for 2011.

Work with identified PTEs, polytechnics and universities to support Māori and Pacific peoples into higher level training.

To be adjusted in 2011 with focus on cross ITO initiatives.

Ongoing external collaboration There is an ongoing programme of collaboration and consultation to be continued into the foreseeable future.

Continue to engage with Māori farming enterprises and industry organisations.

Staff time and resources being adjusted and applied to meeting the demands of climate change, governance and cross ITO initiatives and design of the same.



AgITO is proud to foster and celebrate the passion and commitment of our farming communities

through our support of key industry events. Opportunities for growth and learning extend beyond

training and our involvement in industry good activities is an important part of developing the future

leaders of New Zealand’s agriculture industry.

In 2010 AgITO was proud to support a number of agricultural events including the New Zealand Dairy Industry Awards, our own AgriAwards, Skills Days and Farming to Succeed programmes as well as the 2010 Merino Shearing Competition in Alexandra, the Golden Shears in Masterton and the NZ Shearing Championships in Te Kuiti.

farming to succeed – fast track to successSupporting the development of future leaders in agriculture is an important part of our role at AgITO.

The Farming to Succeed programme sponsored by FIL New Zealand is offered each year to AgITO trainees studying at Level 3 and above. Farming to Succeed runs once yearly over five days, during which participants go through a structured series of workshops, farm visits and discussion groups.

Participants work with course facilitator Grant Taylor and other leading agribusiness practitioners to explore the key ingredients required for the achievement of personal and business success. Only 25 participants are accepted to each course in the North and South Islands.

Topics covered include career development, staged capital growth and asset management, goal setting

and motivation, successful business partnerships, financial development, time management and managing stress.

In 2010 we received 141 applications to attend and once again, feedback from participants was very positive. This practical and intensive programme opens the eyes of attendees to the possibilities in their career and starts them thinking about building sustainable, profitable businesses of their own.

AgriAwards + skills Days

“GrAnt openeD my eyes to my full potentiAl AnD HelpeD me reAlise fArm oWnersHip is A reAl option. We DiscusseD iDeAs, HoW to Get AHeAD AnD HoW to AcHieve GoAls.” stepHen tAylor – 2010 fArminG to succeeD AttenDee

AgriAwards | celebrAtinG success

skills Day | cHAllenGinG fun

AgITO celebrates the achievements of our trainees and employers through our regional AgriAwards.

17 AgriAwards are held annually in 16 regions throughout New Zealand. These awards recognise the successes of our top achievers, employers and graduating trainees and rewards them for their commitment to training.

AgriAwards are a key event for AgITO to raise the profile and prestige of farm training in our communities.

AgITO Skills Days test our trainees’ practical farming skills and give them the opportunity

to learn new skills and compete for local awards.

We encourage our trainees to have a go, meet other local farmers and challenge themselves.

Skills Days modules have included challenges in areas such as dairy hygiene, first aid, ATVs, tractors and chainsaws, fencing and animal husbandry.

AgriAwards and Skills Days are organised through the support of regional committees and local AgITO field teams.



new Zealand Dairy industry AwardsAgITO is the proud industry partner of the New Zealand Dairy Industry Awards which celebrate the achievement of our dairy farmers in three main categories:

› Sharemilker/Equity Farmer of the Year

› Farm Manager of the Year and

› Dairy Trainee of the Year.

As industry partner we are responsible for promoting and administering the Dairy Trainee of the Year Award. For the 2010 competition there were 206 entrants. New Zealand has some exceptional young people working in the dairy industry and some inspirational role models. Our relationship with the NZ Dairy Industry Awards links these people together in a visible way, with a high percentage of the Dairy Trainee, Farm Manager

and Sharemilker/Equity Farmer of the Year finalists being current trainees, graduates and/or farmer trainers with AgITO.

The field days and awards evenings associated with the Dairy Industry Awards are an important opportunity for AgITO to engage with our local stakeholders. These events were well attended and supported by local AgITO staff.

NZDIA 2010 National winners – (from left) Blake Korteweg (Dairy Trainee of the Year) , Carwyn Monteith (Farm Manager

of the Year), Annalize du Plessis and Stefan du Plessis (Sharemilker of the Year).

sector reports



modern apprenticeship helps young matamata sheep and beef farmer step up

“Modern apprenticeships are a great way to meet your career goals”, AgITO sheep and beef trainee, Philip Wadey says.

After two years on his employer Craig Alexander’s Matamata sheep and beef farm, the keen young farmer is now 2IC of the 500 hectare farm – an impressive achievement for someone only just 18.

Philip is nearly finished his Level 3 modern apprenticeship and is a big supporter of the scheme. He thinks the extra mentoring he received as a modern apprentice gave him an advantage.

“The training plans are good,” he says. “The deadlines help you focus on what you need to do. I’m not a paperwork person, so it really helped, and I’ve always got this qualification to fall back on.”

Philip’s training adviser, Anna Yarndley, is impressed with his work ethic. “Philip’s employers think he’s wonderful. He really stepped up last winter when his supervisor left and he has been working long hours without a complaint. He is an example of someone who

has really taken on the challenge.”

Philip’s employer, Craig Alexander, agrees. “Philip really took it in his stride. I give him jobs and he just goes through with them, I don’t need to follow up. The modern apprenticeship is a good way to get basics right and the sessions with Anna have been great in giving Philip something to aim towards.”

Anna notes that as the visits with Philip and his employer were quarterly they could discuss topics and goals related to the seasons, like calving and mating.

“Modern apprenticeships are a fantastic way for young people to achieve in their industry and progress their careers,” she says. “They receive additional mentoring and guidance around career planning and learning.

“Meetings are held at a scheduled time every three months and allow our employer and our modern apprentice to focus on their contributions to learning and to the business. They get a lot out of it in terms of relationship and business development.”

moDern ApprenticesHips AgITO offers a range of modern apprenticeship pathways up to three years in duration. Modern apprenticeships help us attract, train and retain high calibre people in our industry.

Modern apprenticeships are a work based initiative, sponsored by the New Zealand Government, for 16 – 21 year olds in industry employment. The initiative allows trainees to learn while they earn and gain nationally recognised NZQA qualifications.

Participants in the scheme receive personalised support through three monthly visits, training plans and goal-setting sessions with a modern apprenticeship coordinator. This extra mentoring support gives the scheme a significant advantage over other training options.

For employers the modern apprenticeship scheme can help their staff stay motivated, improving staff retention. Employers also find their modern apprentices progress more quickly in their level of responsibility.

In 2010, 597 trainees were enrolled as modern apprentices and 120 modern apprentices completed their qualifications, many with Level 3 or Level 4 National Certificates.

We ran three development days for modern apprentices in 2010, providing extra inspiration and motivation to trainees involved and we hope to expand that offering in 2011.

MA completion numbers

140

120

100

80

60

40

20

0 2007 2008 2009 2010

Modern apprentices by sector

100%

95%

90%

85%

80%

75%

70%

65%

60% Dairy Sheep Wool Pork Poultry Rural Water & Beef Cattle Harvesting Servicing


Proportion of all trainees who are MAs

100%

95%

90%

85%

80%

75%

70%

65% 2007 2008 2009 2010

MA Trainees

MA Trainees


DAiry 2010 was a year of highs and lows in the dairy sector. The Fonterra payout was good and milk supply has been slightly up overall. However production levels in different regions have varied, largely due to challenges created by the weather.

AgITO trainee numbers in the dairy sector were 6,945 down from 7,093 the previous year.

On a positive note completion rates have increased in 2010 to 44% for this sector versus 38% in 2009.

We continue to offer training that is relevant and delivers real outcomes on farm and we see the positive impact of this on a daily basis.

We know that our training helps farms maximise production when faced with challenges – e.g. droughts, floods, and level of payouts. People with a strong grasp of the theoretical knowledge and practical skills associated with farming are better able to make quality and timely decisions, minimising negative impacts and maximising opportunities.

Wide ranging and relevant training options are available to support them in this. For example:

› Milk Quality workshops – increased returns on farm from reduced somatic cell counts

› Dealing with Dairy Farm Effluent/Effluent Management Planning – maximising the nutrient value and minimising disposal issues

› Level 4 and Production Management courses – increased returns on farm through feed growth, utilisation, animal health, breeding, etc.

› Rural Staff Management – confidence in being a good employer which in turn increases farm productivity.

Changes made to the qualifications for Level 3 training (farm assistants) have been well received by trainees and employers. The changes broke down the qualifications to increase focus on topics specific to dairy farming, feeding and pastures, health and husbandry, breeding and milk production. This modular approach has enabled those employed for very specific roles to train in the area directly related to their current position on farm. This approach has achieved excellent results – 883 certificates were achieved in 2010.

We strongly value the relationship we have with industry stakeholders DairyNZ and New Zealand’s dairy companies, and very much appreciate their support. Their collaboration ensures our course development and delivery is in the areas that really do make a difference in the industry, so along with our farmer and trainee feedback, their voice is important to us. Our field staff now share regional offices with DairyNZ in Invercargill and Rotorua. Collaborative work plans have been developed in every region. This is proving to be a successful model and we will be building on this work in 2011.

Trainees Credits achieved Certificates achieved

2009 2010 2009 2010 2009 2010

7,093 6,945 254,233 211,011 3,947 3,915

Level 2 3 4 5

Agreements 3,639 6,170 2,918 837

Trainee ethnicity

71% European

9% Māori

6% Not stated

13% Other

1% Pacific Island

Completion rates

45%

40%

35%

30%

25%

20%2008 2009 2010


sHeep AnD beef cAttle After low returns in the industry, 2010 saw a much needed lift in commodity prices for this sector. The 2010 lambing season received a strong profile in the media with storms resulting in high death rates of lambs and ewes, testing the resilience of our farming community.

Despite feedback from our trainees that AgITO qualifications are valuable to developing their skills, knowledge, career progression and dollar returns from the land, we traditionally have struggled to engage a large number of participants in training in this sector.

It is pleasing therefore that in 2010 trainee numbers in this sector increased with 944 people engaging in training versus 872 in 2009. The qualification completion rate also increased to 26%.

Written assessment is a barrier to learning for some people and we are carrying out work to provide alternative and equally credible methods of assessment that reduce reliance on lengthy written work.

Competency is gained through repetition and practical experience – the ‘know how’ and the ‘can do’.

Our observation is that programmes assessed in the natural environment by industry assessors with minimal written work are far better suited to the needs of our learners, particularly in the lower level courses. In 2011 we will continue to seek opportunities where we can actively apply this concept to our training as qualifications and programmes are reviewed and developed. We expect that this will improve completion rates across all our learning programmes.

Block courses clustering Level 3 (shepherds/farm assistants) or Level 4 (stock managers) trainees have been held successfully in Turangi, Canterbury and Otago, providing an alternative form of delivery to our trainees. Block courses are a valuable way to enable geographically remote trainees to come together and undertake off job learning in a supportive environment and we have received positive feedback from those who have participated.


2009 2010 2009 2010 2009 2010

872 944 26,290 23,665 335 345

Level 2 3 4 5

Agreements 374 454 655 194

Trainee ethnicity

78% European

15% Māori

5% Not stated2% Other

Completion rates

30%

25%

20%

15%

10%

5%

0%2008 2009 2010


sHeArinG AnD Wool HArvestinG

collaborating for success

Approximately 5,000 skilled and experienced shearers and wool handlers are required by the industry to shear the New Zealand wool clip each year, plus a large number of transient workers (one season to one year workers).

Given the physical nature of the work, around 15% of skilled and experienced workers leave the industry each year. In addition, many seasonal workers need entry level training to participate productively within the industry.

Using Tectra as the common delivery provider and promoter of wool harvesting careers to new entrants – AgITO, Telford Rural Polytechnic and secondary schools combined to deliver entry level and staircased training to ensure labour demands are met. This coordinated approach manages the complete process, from recruitment and training to ongoing development of higher level skills resulting in

increased productivity and improved individual performance levels.

In total, around 700 new entrants are recruited and trained into the industry each year – a number the shearing industry has determined is consistent with their requirements. Of these around half are employed at the time of training (AgITO trainees) while the other half are trained prior to employment. Tectra also has a contract to deliver post-employment training to AgITO trainees who wish to become self employed and employers in their own right.

This shows a clear pathway from secondary to tertiary education that benefits trainees and the wool harvesting industry from initial recruitment to leadership through the collaboration of a range of Training and Education Organisations (TEO’s).


2009 2010 2009 2010 2009 2010

1,592 1,453 44,591 23,393 800 655

Level 2 3 4 5

Agreements 1,268 674 317 10

Trainee ethnicity

41% European

Shearing and wool harvesting training has had another very strong year and remains our second largest pool of trainees after those in the dairy sector.

We are pleased to report that a fee increase has had little to no impact on training uptake, with increased market penetration and qualification completions – a clear indication that training is valued by businesses and trainees within the sector.

An independent research project instigated by Tectra, (our wool harvesting training provider) reported that trainees and employers see a direct relationship between productivity improvement and training. According to the research, shearing contractors see, on average, an increase in shearing throughput of 40 sheep per day per trainee as a direct result of training. This figure is consistent across all levels of training from entry level through to Level 4. In the current market this increases profitability by approximately $60 per day for shearers (trainees) and $120 per day for employers. This is a direct result of increased shearer throughput, higher productivity from wool handlers and pressers and lower operating overheads by cutting out sheds faster.

Completion rates

75%

70%

65%

60%

55%

50%2008 2009 2010

59% Māori



poultry The Poultry Industry Association of New Zealand and Egg Producers Federation of New Zealand have continued their strong partnership and support of this sector with AgITO.

Companies such as Inghams and Tegel engage with AgITO in training their staff in a range of qualifications. Our Level 2 qualifications are widely accepted as the minimum standard for meat growers and table egg producers. This training is now beginning to level out as the market reaches saturation.

Higher level qualifications are provided where suitable employees are identified within organisations.

These organisations engage in AgITO’s training with a clear understanding of the value training will deliver to their business.

porK The New Zealand pork industry is facing a number of well publicised challenges. Training is recognised as a core component of successful pork farming that will help the industry improve productivity and enhance its public profile. AgITO has addressed certain aspects of training in the pork industry (such as falling numbers of trainees and rising costs of training delivery) by the commission of a review of pork qualifications. This review was designed to bring a fresh perspective on training in the New Zealand pork industry by considering:

› Effectiveness of current training services › Process and structure of current delivery models › Reasons for falling numbers of trainees › Opportunities for new services/delivery models › Future opportunities for AgITO in the pork industry.

An outcome of the review was a training pathway of NZQA approved National Certificates leading to a National Diploma in Pork Production. The new training pathway provides training for all career stages and a career pathway from entry level to unit management.


2009 2010 2009 2010 2009 2010

71 44 951 935 9 2

Level 2 3 4 5

Agreements 8 19 26 3


2009 2010 2009 2010 2009 2010

185 197 4,509 3,005 65 46

Level 2 3 4 5


Trainee ethnicity

73% European13% Māori

5% Not stated

6% Other3% Pacific Island

Completion rates

25%

20%

15%

10%

5%

02008 2009 2010

Completion rates

65%

60%

55%

50%

45%

40%

35%

30%2008 2009 2010

Trainee ethnicity

75% European

7% Māori

7% Not stated

9% Other

2% Pacific Island


pest mAnAGement The Animal Health Board (AHB) employs contractors to monitor and control bovine tuberculosis vectors (carriers). AgITO partners with AHB to provide training to staff and contractors in this sector with a high level of success.

Assessment of skills and experience through job evidence collection assists in the completion of National Certificates within the pest management sector.

Engagement of training strands relevant to their role has been successful with contractors of rabbits, mustelids, avian pests and rodents.

rurAl servicinG This sector, includes traditional rural servicing organisations such as RD1, PGG Wrightson, Elders, Goldpine, CRT, Farmlands and Allied Farmers along with non-traditional business such as banks, fertiliser companies, rural professionals and energy companies.

The focus of rural servicing training is on delivering the knowledge and skills required to work effectively in a retail store environment in the rural sector.

Rural servicing organisations are taking a more structured approach to training. PGG Wrightson has reactivated its Training Academy. RD1 is currently working on a strategic approach to training. Farmlands have developed an in-house training system.

Traditional rural servicing organisations are engaged in AgITO training but numbers in this sector have declined, possibly as a result of the recession.


2009 2010 2009 2010 2009 2010

440 355 9,344 4,251 225 126

Level 2 3 4 5



2009 2010 2009 2010 2009 2010

516 569 6,859 5,743 135 231

Level 2 3 4 5


Trainee ethnicity

88% European

3% Not stated 1% Other

Completion rates

55%

50%

45%

40%

35%2008 2009 2010

8% Māori

Completion rates

50%

45%

40%

35%

30%

25%

20%2008 2009 2010

Trainee ethnicity

86% European

3% Not stated

11% Māori


2010 was a year of consolidation for training in the water industry. The number of trainees in formal agreements at year end was 815, down from 842 in 2009.

The number of modern apprentices dropped slightly from 74 in 2009 to 52 in 2010, reflecting the relatively low numbers of people who qualify by age to be modern apprentices and the fact that most people stay in the water industry their entire careers.

Of the 177 certificates issued 25 were diplomas and 12 were for completion of modern apprenticeships.

Water Industry Training is focused on developing human capability in human and environmental health. This is vital for an industry workforce that is ageing and an industry that is demanding more technical knowledge of its employees.

WAter inDustry trAininG


2009 2010 2009 2010 2009 2010

842 815 21,758 25,545 210 177

Level 2 3 4 5


Water Calendar

Over the last few years Water Industry Training has printed a calendar for customers which includes photographs submitted as part of a photo competition. Every year the standard of the photos has been fantastic and 2010 was no exception. The winner for the 2010 year was Jim Evans from New Plymouth District Council.

Trainee ethnicity

71% European

16% Māori

4% Not stated

4% Other

5% Pacific Island

Completion rates

50%

45%

40%

35%

30%

25%2008 2009 2010


focus on industry training benefits united WaterUp skilling staff through industry training adds value to organisations in the water industry as well as to trainees’ career prospects, says United Water general manager NZ, Ian Cathcart.

“Training keeps staff challenged, rewarded and evolving on their career pathway,” he says. “We have contractual obligations with our district council clients to train our staff – you’ve got to make sure everyone is up to speed under health and safety legislation.”

United Water currently has 38 staff members completing qualifications through Water Industry Training. The organisation provides water and wastewater services in seven regions in New Zealand, from Papakura in the North Island, through to Queenstown in the south. Finding skills gaps and eliminating them through training is all part of their strategy for new staff members.

“We do a training assessment when staff first come in and assess them to find out what they need to do the job,” Ian says.

Water Industry Training manager, Ashley Chisholm, says that the way United Water has integrated staff training into their business sets a standard for the water industry.

“United Water sees the benefit of investing in their staff through training and helping them to obtain recognition for their skills and competencies through industry recognised National Certificates and Diplomas,” he says.

“Training is a tool that assists United Water to maintain a high standard of work, help with succession planning and maintain staff morale and motivation,” Ashley continues.

“Organisations like United Water can use training as a value-add when quoting for new work – they can show that a commitment to training and skills development is part of their corporate culture.”

United Water’s advocacy of industry training resonates with their employees. Jeremy Harris, leak detection technician for United Water in Queenstown, says seizing the opportunity to up skill himself was easy.

“I started in the water industry in the UK,” he explains. “My work experience in the UK wasn’t recognised over here, so it was great when United Water said they were happy to help me get qualifications that are recognised.

Jeremy is also aware of how qualifications can help him meet his career goals. “I’d like to go into water treatment and do a qualification in that area,” he says. “I’m aspiring to move up – I’d like to be up in the management area of the contracts we have here.”

Ian Cathcart believes up skilling his employees increases their confidence and self esteem.

“From a risk perspective it reduces both our risk and the client’s risk by having trained individuals who are able to carry out their tasks competently and meet their obligations to public health,” he says.

“Even in the recession, we haven’t dropped our focus on training – I have great people working for me and I want to make sure they enjoy where they work and that they’re fully empowered every day they come to work,” Ian says.


Agriculture Services Ltd (ASL) is a wholly owned subsidiary of AgITO. The focus of ASL within the group is to:

› Operate as a commercial business undertaking consultancy, business development and project management assignments. In New Zealand our business activities predominantly support and build on the strategic objectives and industry leadership platforms of AgITO

› Explore and develop international business opportunities that focus on developing human capital in the primary industry, using both capacity-building frameworks and formal vocational training solutions

› Create commercial returns from business activities that can be reinvested in New Zealand for the benefit of the New Zealand agricultural industry and farmers.

ASL has a Board of Directors appointed by AgITO with wide experience in agribusiness, farming and training and development.

AGriculture services limiteD

CURRENT PROJECTS

Agriculture Human Resource Project

ASL is managing a project on behalf of AgITO to help farmers target areas where they can improve the management of their staff. The project involves developing a diagnostic and benchmarking tool that can help farmers understand where improvements in the management of human resources may help the development and performance of their business. By assisting farmers to identify and target those specific areas, the opportunity to improve productivity is considerable. The project is linking closely with the human resources component of the DairyNZ Whole Farm Plan initiative.

Professional Land Manager Association

ASL are co-investors in the dairy industry Primary Growth Partnership programme. This programme is a partnership between industry and the Government targeting long term growth in the sector.

Through its investment, ASL is contracted to DairyNZ to manage a project to develop a Professional Land Manager Association.

Good land managers are vital to the growth and success of our industry and this initiative is about recognising the importance of land based managers as ‘professionals’ within the industry and providing a framework for their ongoing learning and development.

MAF Climate Change Technology Transfer Programme

ASL has been involved in the delivery of three significant climate change technology transfer programmes for MAF:

› Integrating climate change principles into tertiary education and sector training

› Building climate change into long term vocational training

› Evaluating the current skills and development of training provided to Iwi/Māori in the context of sustainable and resilient land management.

The projects involve working with AgITO on its leadership platform and integrating this with our knowledge, expertise and networks in extension and agricultural science.

Reporting Value Add (Economic return from training)

ASL has expanded its RVA work with new studies in the pork and water industries and further studies will be undertaken in the services sector in 2011. The methodology is showing good results from training particularly where the training systems are well integrated with management systems. The studies confirm that when considering the value of training there is a need to think beyond the training event and the acquisition of discrete skills and knowledge, to the alignment with business goals, integration of training with performance and operating systems and supportive management systems.

GrowSafe

ASL has developed and manages the national database for GrowSafe certification on behalf of the New Zealand Agrichemical Education Trust (NZAET). During 2010 5,100 GrowSafe certificates were recorded and issued. Over the next two years this volume is set to increase as five yearly certificate renewals are sought by current certificate holders.

FarmSafe

ASL manages AgITO’s interests in the FarmSafe Consortium. FarmSafe is at the forefront of farm safety training and rural safety initiatives in New

Reticulation Qualifications Review

Water Industry Training and InfraTrain worked together with industry to review the qualifications structure for water reticulation training. The final round of consultation was finished late in the year and the working group finalised the details of a number of new unit standards for the redesigned qualifications. This means there will be some changes to the qualification pathways and Level 3 and 4 reticulation qualifications.

New Developments

Three new development projects were commenced during the year – irrigation operations, environmental monitoring and water meters.

Irrigation OperationsWe are working with Irrigation NZ and our industry partners to develop unit standards and national qualifications for people who operate or manage irrigation. This will mainly be for users on farms and may also be an optional stream for other agricultural qualifications.

Environmental Monitoring (Hydrology) We are working with industry through the Hydrology Working Group to establish a new qualification for environmental monitoring technicians/officers working in the field of hydrology. Unit standards are currently being designed for this qualification.

Water MetersWater Industry Training together with Irrigation NZ, has developed unit standards for the installation and verification of water meters. These standards are for people who are;

› Responsible for the selection, and installation of water measurement devices and systems

required for permit holders to meet their obligations

› Responsible for the verification of the water meters.

We have developed the standard for installation and there is an industry expert group developing guidelines for verification from which that standard will be developed.

Off Job Training

During the year Water Industry Training worked with the New Zealand Water and Environment Training Academy (NZWETA) to provide 70 block courses/workshops for our trainees. NZWETA has been part of the water training landscape for nearly ten years, providing NZQA approved education and training for the water and wastes industry. NZWETA is a joint venture between Water NZ and Opus International Consultants, whose Environment Training Centre designs and delivers the training. NZWETA’s drive to deliver relevant industry training mean that they spend time and resources on building industry relationships and gathering and responding to feedback.

Industry Involvement

During the year Water Industry Training issued five newsletters and was active within the water and waste industries through visits and attendance at industry conferences and meetings. Staff took active roles in Water NZ and Water Industry Operations Group, the two primary organisations in the industry.


Zealand and continues to deliver a suite of high quality training programmes that target safety in rural workplaces. During 2010 FarmSafe has evolved into online learning solutions including agrichemical Approved Handler and GrowSafe renewal training. FarmSafe is progressively exploring new and innovative delivery options to better meet client needs and help make rural workplaces safer.

Focus on the Future

On the national front, 2011 attention will focus on the Land Manager and Human Resources projects to get these to a point where they make a difference within our industries.

It is a widely held view that New Zealand agriculture is well positioned to leverage its expertise to support the growing global demand for food production. ASL sees the opportunities for providing skill development solutions in developing countries where commercial farming is expanding. Within this context, ASL will continue to develop its international portfolio, including working with New Zealand agribusiness companies who are operating globally.

INTERNATIONAL

China

ASL is working with Fonterra to provide the people development processes to support their widely publicised farm expansion in China. ASL General Manager Dennis Radford visited the China farm in June 2010 and assisted in the development of a strategic training plan and health and safety

risk assessment and training interventions. More detailed interventions will follow in 2011.

Chile

ASL is involved in developing a project to assist the red meat supply chain in Chile. The project was initiated by meat processors in Chile and is funded by the Chilean Government. The project involves both training and extension and incorporating New Zealand ‘know how’ and systems to assist in the development of the sector.

Fiji

ASL are contracted with Goodman Fielder International, Nausori, Fiji, to deliver poultry production training to their staff and growers. The programme has now been running for four years and is a mix of on job practical and off job theory based units that are delivered in house by trained trainers/assessors. The programme is moderated by AgITO under licence by NZQA and New Zealand National Certificates are awarded to successful graduates.

A programme evaluation was completed during the year using the value add methodology. This indicated a 4.6:1.0 return on the training investment, clearly delighting the customer and demonstrating the value of well trained employees.

finAnciAl reports

��



› Government Revenue

STM revenue accounts for 72% of the ITO’s total revenue. STM’s achieved for 2010 were 5,767 which was slightly higher than the 2009 achievement of 5,763 but 194 STM’s lower than contracted from Tertiary Education Commission (TEC). This was caused by a combination of factors including the recession and a greater emphasis on completions.

Overall total government revenue was $0.549 million higher than 2009 and this was largely due to additional leadership funds provided for special projects, e.g. Literacy, Language and Numeracy (LLN).

› Other Revenue

Trainee fee income remained fairly static for the year. Industry revenue reflects the grants received from our industry partners. With the loss of the wool levy funding industry grants decreased by $0.23 million in 2010.

Two years ago the ITO created an in house print room. This was in response to the development of in house resources and after thorough

investigation was felt to be the most cost effective way to produce the resources. The print room has capacity to do some external work and specialises in ITO resource printing. The print room has been successful as reflected in the increase in revenue from $0.315 million in 2009 to $0.691 million in 2010.

AgITO is a not for profit organisation and these financial statements represent the financial performance of AgITO (the ITO), its wholly owned subsidiary Agriculture Services Ltd and the share of profit from the FarmSafe joint venture.

Training activities reflected in Standard Training Measure (STM) revenue and trainee fee income are the key drivers for revenue in the ITO. These activities are supported by core staffing and provider delivery of training.

Changes in the reporting standards require the ITO to report total comprehensive income for the year attributable to the incorporated society. This decreased by $0.187 million in 2010. Total surplus for the year was $0.568 million (2.3%) and operating surplus (which excludes depreciation, interest and joint venture income) for the year was $0.448 million or (1.8%). Results for the year reflect the following key drivers:

finAnciAl results commentAry

20

18

16

14

12

10

8

6

4

2

0 2005 2006 2007 2008 2009 2010

Government revenue Industry revenue Trainee fees Print Room revenue Consulting Other

Revenue resources

Nu

mb

ers

in t

ho

usa

nd

s

› Expenditure

People Costs

The AgITO group staffing level at 31 December 2010 was 132 compared to 119 in 2009. Staff costs increased as we filled vacant positions in the field and reorganised our Wellington office functions, incurring some redundancy costs. Contractor costs also increased as we contracted people to assist in delivering projects associated with leadership funds, e.g. two people for LLN. We also contract in support for development of relationships with Māori and carrying out moderation and assessment.

Operating Costs

The establishment of the new field hub structure added regional office costs which were fully realised for the first time in the 2010 year. Also included in the operating costs are the direct costs of $0.402 million associated with the print room yielding a gross profit of 41.8% for the year. Other areas of operating costs have remained relatively static for the year.

Training Costs

Provider costs for most industries were lower than last year in line with underachievement of STMs and fewer trainees than expected. However there was an increase in wool training ($0.28 million) as we were able to recruit greater numbers into this area.

Balance Sheet

Working capital increased by 3.2% to $6.323 million. TEC guidelines suggest cash reserves should be between 4 and 6 months of total expenditure, and the ITO is currently just under 4 months. The higher the level of cash reserves the less likely TEC would be to fund additional projects.

Fixed asset purchases totalled $0.887 million with most of this being the new Total Information

Management System (TIMS). Expenditure on the TEC’s Industry Training Register (ITR) and associated enhancements to TIMS were included in this result.

Summary Financial Statements

A summary of the ITO Group’s (“the Group”) and the ITO’s (“the Organisation”) audited financial statements for the year needed 31 December 2010 which were authorised for issue on 13 May 2011 is shown on pages 57 and 58.

The summary financial statements have been prepared in accordance with FRS 43 – Summary Financial Statements.

The financial report summary has been extracted from the full financial statements (prepared in accordance with NZ IRFS as appropriate for public benefit entity) dated 13 May 2011, which have been audited and on which an unqualified opinion has been issued. Therefore the financial report summary cannot be expected to provide as complete an understanding as provided by the full financial statements.

The full financial statements are prepared in New Zealand dollars.

The Group has made an explicit and unreserved statement of compliance with NZ IFRS in its full financial statements.

A copy of the full financial statements can be obtained from the finance manager.

The Auditor has examined the financial report summary for consistency with the audited financial statements and has issued an unqualified opinion.

8

7

6

5

4

3

2

1

0 2005 2006 2007 2008 2009 2010

Working capital

Nu

mb

ers

in t

ho

usa

nd

s

12

10

8

6

4

2

0 2007 2008 2009 2010

People costs Operating costs Training costs Depreciation

Expenditure categories

Nu

mb

ers

in t

ho

usa

nd

s


STATEMENTS OF COMPREHENSIVE INCOME For the year ended 31 December 2010

Agriculture ITO Group Agriculture ITO

2010$000

2009$000

2010$000

2009$000

INCOME

Government Revenue 18,681 18,132 18,681 18,132

Industry Revenue 1,805 2,035 1,805 2,035

Interest 337 333 288 291

Trainee Fees and Other Income 3,836 3,102 3,124 2,716

Dividend From Associate – – 317 197

TOTAL INCOME 24,659 23,602 24,215 23,371

EXPENDITURE

People Costs 10,550 9,977 10,486 9,527

Operating Costs 6,710 6,355 6,639 6,076

Training Costs 6,614 6,341 6,422 6,719

Depreciation/Amortisation 517 391 507 387

TOTAL EXPENSES 24,391 23,064 24,054 22,709

Share of Profit from Associate 300 217 – –

SURPLUS ATTRIBUTABLE TO THE OWNERS OF THE PARENT 568 755 161 662

OTHER COMPREHENSIVE INCOME

Other Comprehensive Income – – – –

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

ATTRIBUTABLE TO THE INCORPORATED SOCIETY

568 755 161 662

STATEMENTS OF CASH FLOWS For the year ended 31 December 2010


2010 $000

2009$000

2010$000

2009$000

Net Cash Flows from Operating Activities 1,356 1,739 923 1,617

Net Cash Flows from Investing Activities (2,561) (465) (2,076) (462)

Net (decrease)/increase in cash held (1,205) 1,274 (1,153) 1,155

Cash at beginning of the year 2,335 1,061 1,960 805

CASH AT END OF THE YEAR 1,130 2,335 807 1,960

STATEMENTS OF CHANGES IN EQUITY For the year ended 31 December 2010


2010$000

2009$000

2010$000

2009$000

Net Equity Brought Forward – Retained Earnings 7,290 6,535 6,166 5,504

Add: Comprehensive Income – Surplus 568 755 161 662

NET EQUITY CARRIED FORWARD – RETAINED EARNINGS 7,858 7,290 6,327 6,166

PricewaterhouseCoopers , 113 – 119 The Terrace, PO Box 243, Wellington 6140, New ZealandT: +64 (4) 462 7000, F: +64 (4) 462 7001, www.pwc.com/nz

Independent Auditors’ Report on the SummaryFinancial Statementsto the stakeholders of Agriculture Industry Training Organisation Incorporated

We have audited the accompanying summary financial statements of Agriculture IndustryTraining Organisation Incorporated (‘the Organisation’ or ‘Agriculture ITO’) and the Group,which comprise the summary statements of financial position as at 31 December 2010, thesummary statements of comprehensive income, summary statements of changes in equity andsummary statements of cash flows for the year then ended, which are derived from the auditedfinancial statements of the Organisation and Group for the year ended 31 December 2010. Weexpressed an unmodified audit opinion on those financial statements in our report dated 13 May2011.

The summary financial statements do not contain all the disclosures required for full financialstatements under generally accepted accounting practice in New Zealand. Reading the summaryfinancial statements, therefore, is not a substitute for reading the audited financial statements ofthe Organisation and Group.

National Board’s Responsibility for the Summary Financial StatementsThe Directors are responsible for the preparation of a summary of the audited financial statementsin accordance with FRS-43: Summary Financial Statements.

Auditors’ ResponsibilityOur responsibility is to express an opinion on the summary financial statements based on ourprocedures, which were conducted in accordance with International Standard on Auditing (NewZealand) 810: Engagements to Report on Summary Financial Statements.

Other than in our capacity as auditors we have no relationship with, or interests in theOrganisation or Group.

OpinionIn our opinion, the summary financial statements derived from the audited financial statements ofthe Organisation and Group for the year ended 31 December 2010 are consistent, in all materialrespects, with those financial statements, in accordance with FRS-43.

Restriction on Distribution or UseThis report is made solely to the Organisation’s stakeholders, as a body. Our audit work hasbeen undertaken so that we might state to the Organisation’s stakeholders those matterswhich we are required to state to them in an auditors’ report and for no other purpose. To thefullest extent permitted by law, we do not accept or assume responsibility to anyone otherthan the Organisation and the Organisation’s stakeholders, as a body, for our audit work, forthis report or for the opinions we have formed.

Chartered Accountants Wellington13 May 2011


orGAnisAtionAl informAtion


STATEMENTS OF FINANCIAL POSITIONAs at 31 December 2010


2010$000

2009$000

2010$000

2009$000

ASSETS

Current assets

Cash and Cash Equivalents 1,130 2,335 807 1,960

Term Deposit 6,251 4,240 5,251 3,710

Trade and Other Receivables 1,280 1,618 1,122 1,424

Investment in Associate 200 217 - -

Inventory 22 24 22 -

Total Current assets 8,883 8,434 7,202 7,094

Non-Current assets

Intangible Assets 1,002 577 938 577

Fixed Assets 533 588 530 575

Total Non-Current assets 1,535 1,165 1,468 1,152

TOTAL ASSETS 10,418 9,599 8,670 8,246

LIABILITIES

Current liabilities

Trade and Other Payables 1,807 1,495 1,660 1,325

Employee Entitlements 701 644 648 609

GST Payable 52 170 35 146

Total Current liabilities 2,560 2,309 2,343 2,080

TOTAL LIABILITIES 2,560 2,309 2,343 2,080

NET ASSETS 7,858 7,290 6,327 6,166

EQUITY

Retained Earnings 7,858 7,290 6,327 6,166

TOTAL EQUITY 7,858 7,290 6,327 6,166

The Directors have authorised these financial statements for issue.

For, and on behalf of, the National Board:

Signed: ______________________ Signed: ______________________ Date: 13 May 2011 Date: 13 May 2011


orGAnisAtionAl structure

SEE REGIONAL FIELD MAP ON PAGES 62 – 63

Stephanie Robertson – Comm

unications

Adviser

Heleen Smith – Administrator

Emily Byrne – Events Coordinator

Dorothy Opai – Multimedia Designer

Claire Spiers – Brand Manager

Brendan Maxwell – Print Room Assistant

Alastair McLellan – Print Room Supervisor

Suzie Chang – Management Accountant

Kate Patterson – Accounts Receivable Officer

Robyn McLaughlin – Accounting Assistant

Karyn Kearney – Contracts AdministratorVinod Pratap – Finance ManagerAlastair Parkkali – Helpdesk Administrator

Peter Lister – Systems Specialist

Matthew Cooley – Systems Engineer

Nigel Campbell –

Inform

ation Analyst

Lyndon A

llott

– IS M

anag

er

Lucy Haberfield –

GM Corporate

Services

Charlotte Steel – Strategic Business Adviser

Ruth McLennan – Business Development

Adviser

Judi

Rob

son

– EA

, Cor

pora

te S

ervi

ces

Just

in B

lakie

– Stra

tegi

c Mar

ket A

naly

st

Gra

eme

Cou

per

– Ed

ucat

ion

Qua

lity

Adv

iser

An

dre

w D

on

oh

ue

– Q

A M

anag

er

Kar

en T

hom

son

– Q

ualit

y C

oord

inat

or

Fion

a Be

ards

lee

– Se

nior

Pol

icy

Ana

lyst

Vani

ta H

urnd

ell –

Edu

catio

n A

dvis

er

Nicki W

illiamso

n – E

A, N

ation

al Field

Rich

ard Law

rence – E

xecutive O

fficer

Judi Fleck – Service C

entre Manager

Kate A

lexander – Territory Manager

George Schuler – Territory M

anager

Jenny Vandenberg – Territory Manager

Kevin Scannell – Territory Manager

Andrew Shepherd – Territory M

anager

Trac

ey S

heph

erd

– Po

licy

& Q

ualit

y M

anag

er

Carrie Graham – Learning & Development

Adviser

Jenna Roberts – HR Adviser

Michelle Hansen – Executive Assistant

Karen Keeley – HR ManagerMelissa Gill – HR/Payroll Officer

Peter MacGregor – Strategic Relationships Manager

Murray Linton – Corporate Sales M

anager

Kathryn van den Beuken –

Key Accounts

Manager

Doug Macre

die – Key A

ccounts

Manager

Sharon O

rr – K

ey A

ccounts

Man

ager

Adria

n O

sbor

ne –

Key

Acc

ount

s M

anag

er

Kylie

Mac

Don

ald

– A

dmin

istr

atio

n Su

ppor

t

Water

Key Accounts

Marketing

Brand

Prin

t

Claire C

hapman –

National Field M

anager

Mitasha M

urabi – Resource Coordinator

Toni Collins – R

esource Designer

Anna D

ouglas – Resource W

riter

Joh

n B

ou

rke – Prod

uct D

evelop

men

t Ad

viser

Ch

rissy William

s – Prod

uct D

evelop

men

t A

dviser

Tony M

ord

aun

t – Prod

uct M

arketing

Ad

viser

Denise W

illiams – Im

plementation A

dviser

Tan Huynh – Production M

anager Pastoral

Asharie Perera – Product M

anager

Corporate Key Accounts/W

ater IT

Paul Cording – Marketing &

Product

Developm

ent Manager

Pastoral

Information

Finan

ce

& Product Development

Room

Services

Vyv H

od

gkin

– MA

Co

ord

inato

r

Fred Hardy – Business

Development Manager

Kevin Bryant Chief Executive

Agito stAff 2010

1 Kellie Weatherston

2 Vyv Hodgkin

3 Maryanne Hearn

4 Pauline Aitken

5 Ange Cates

6 Karen Wightman

7 Andrew Karl

8 Andrew Shepherd

9 George Schuler

10 Richard Lawrence

11 Kevin Bryant

12 Tony Mordaunt

13 Cliff Tipler

14 Tan Huynh

15 Martyn Simpson

16 Helene Smith

17 Maryse Dinan

18 Michele Kuriger

19 Sharon Orr

20 Sarah Barr

21 Sue Hall

22 Adrian Osborne

23 Judi Robson

24 Matt Cooley

25 Doug Macredie

26 David Check

27 Vicki Martel

28 Fred Hardy

29 Andrew Donohue

30 Murray Linton

31 Philip Aldridge

32 Vinod Pratap

33 Frances Wilson

34 John Bourke

35 Robyn McLaughlin

36 Marzanne Krogmann

37 Tanya Ingram

38 Tracey Shepherd

39 Russell Stuck

40 Annie Yeates and Tabitha

41 Eleri Williams

42 Kylie MacDonald

43 Kate Alexander

44 Marianne Farrell

45 Jock McKeown

46 Karyn Kearney

47 Toni Collins

48 Claire Chapman

49 Michelle Taylor

50 Stephanie Robertson

51 Kevin Scannell

52 David Barton

53 Kathryn van den Beuken

54 Jenny Vandenberg

55 Tania Matheson

56 Nigel Campbell

57 Chrissy Williams

58 Rebecca Fox

59 Karen Thomson

60 Yvette Palmer

61 Bev Jackson

62 Anna Douglas

63 Rose Anderson

64 Sarah Searle

65 Emily Byrne

66 Emma Collins

67 Nicki Williamson

68 Staz Davey

69 Shona Wapp

70 Margo Robertson

71 Rebecca Dawkins

72 Lisa Dunn

73 Kara Harvey

74 Asharie Perera

75 Denise Williams

76 Graeme Couper

77 Charlotte Steel

78 Carey Blue

79 Ashley Chisholm

80 Annie Sparrow

81 Vanita Hurndell

82 Wendy Fisher

83 Karen Keeley

84 Melissa Gill

85 Justin Blakie

86 Carrie Graham

87 Claire Spiers

88 Shona Manuel

89 Erin Todd

90 Carol Waghorn

91 Stacey van den Beuken

92 Michelle Hansen

93 Dorothy Opai

94 Judi Fleck

95 Kathleen Perry

96 Jenny Sellers

97 Robyn Patterson

98 Mia Jane

99 Fiona Beardslee

100 Lizzy Wilding

101 Linda Wilkinson

102 Mitasha Murabi

103 Jenna Roberts

104 Ruth McLennan

105 Jewel Matheson

106 Anna Yarndley

107 Lucy Haberfield

108 Jo Boocock

109 Lucie Whittaker

1

2 3 4

5

6

7 8

9

10

11

12

13

1416

17 18 1920

21

22

23

24

25

2627

28 2930 31 32

33

34

3536

37

39

40

41

42

43

44 45

46 4748

4950

51

52

53

5455

56

5758 59 60 61

62

63

65 6667

6869

70

7172

73 74

75

76

77

7879

80

81

82

83

8586

87

88

89

90

9192

93

94

95

96

97

98

99

100

101

102

104

103

105106

107

15 38

64

84

108

109

Agriculture Services Limited (ASL) Structure

› Dennis Radford – General Manager

› Susan Turu – Executive Assistant

› Jeremy Neild – Consultancy Manager

› Jane Mitchell – Consultant

› Jenny Sellers – Growsafe Database Operator


Ashley Chisholm – Water Industry Training

Manager

Rebecca Fox – Water Industry Training Adviser

Martyn Simpson – Water Industry Training

Adviser

Nigel Hesford – Water Industry Training Adviser

Marzanne Krogmann – Water Administrator


NORTHLAND & WAIKATO

Kate Alexander, Territory Manager

reGionAl fielD teAms

Northland – 519a Kamo Road, Kamo 0112, (09) 435-0425

› Jewel Matheson › Sarah Searle › Tania Matheson

Waikato – Innovation Centre, Tetra Park Building, Ruakura Road, Hamilton, (07) 853-0604

› Anna Yarndley › Eleri Williams › Frances Wilson › Kara Harvey › Karen Wightman › Maryse Dinan › Michele Kuriger › Rose Anderson

Wellington

Christchurch

Timaru

Mosgiel

Feilding

HastingsStratford

Hamilton

Rotorua

Whangarei

Otago

Southland

Canterbury/ North Otago

West Coast

Kaikoura/ Selwyn

Northland

Waikato

Taranaki East Bay Central

Lower North Island

Invercargill

Top of the |South

Ashburton

Hub Offices

National Office

Territory boundary (approx)

Key

Hub office boundary (approx)

SERVICE CENTRE

Judi Fleck, Service Centre Office Manager

Unit 2, 585 Wairakei Road, Harewood, Christchurch 8053, (03) 357-1308

› Carol Waghorn › Linda Wilkinson › Rylin Devi › Stacey van den Beuken › Yvette Palmer

WEST COAST/CANTERBURY/NORTH OTAGO

Kevin Scannell, Territory Manager

South Canterbury/North Otago – 57a Theodosia Street, Timaru 7910 (03) 683-1520

› Erin Todd › Jock McKeown › Staz Davey

Ashburton – Corner South and East Streets, Ashburton 7740

› Elizabeth Levermore › Jo Boocock

West Coast/Kaikoura to Selwyn

› Annie Sparrow › Carey Blue › Kathleen Perry › Lucie Whittaker › Wendy Fisher

As at 31 December 2010

LOWER NORTH ISLAND/TOP OF THE SOUTH

Jenny Vandenberg, Territory Manager

Feilding – 75 South Road, Feilding 4702, (06) 324-0705

› Ange Cates › David Check › Marianne Farrell › Shona Wapp

Top of the South

› Dani Donovan › Robyn Patterson

Stratford – 379 Broadway South, Stratford 4332, (06) 765-8956

› Bev Jackson › Emma Collins › Michelle Taylor

OTAGO/SOUTHLAND

Andrew Shepherd, Territory Manager

Otago – Invermay Agricultural Centre, Puddle Alley, Mosgiel 9092 (03) 489-8430

› Kellie Weatherston › Russell Stuck › Sarah Barr

Southland – Federated Farmers Building, 70 Forth Street, Invercargill 9810, (03) 214-1352

› Angela Ryder › David Barton › Pauline Aitken › Rebecca Dawkins

EAST BAY CENTRAL

George Schuler, Territory Manager

Rotorua – 69 Marguerita Street, Rotorua, (07) 348-2013

› Andrew Karl › Jennifer Mossman › Lisa Dunn › Lizzy Wilding › Mel Weston › Sue Hall

Hastings – 101 Stoneycroft Street, Camberley, Hastings 4120, (06) 870-3127

› Mia Jane › Shona Manuel › Vicki Martel

64 | AgITO Annual Report 2010www.agito.ac.nz | 0800 691 111

agito - annual report 2010

Documents

industry training act

worldclass industry

industry sectors

training providers

training needs1

training quality

agriculture ito agito

chairmans report