The Australian government has re-opened the international border to backpackers, however, the emergence of the new COVID-19 variant Omicron has many wondering if international border restriction will be reinstated.

The effects of COVID-19 on the Australian agricultural workforce have been most directly felt in the horticulture sector. A key concern in the short term is the extent to which labour markets can adapt to the restrictions put in place to control the spread of COVID-19 and therefore whether horticulture producers will have access to sufficient seasonal workers to harvest crops.

Backpackers coming to Australia on a 417 working holiday visa can enter NSW, the ACT and Victoria without quarantining if they meet strict criteria. This includes proof of vaccination with an approved vaccine or a medical certificate explaining why they are unable to be vaccinated. Given COVID-19 is raging again in Europe, farmers were hoping travellers will come to Australia in droves relieving Australian farmers from labour shortages.

As summer approaches Tasmania’s farm labour requirement is about to peak. Under the current border restrictions, international travellers including workers in the agricultural sector are unable to enter the state. With the emergence of the Omicron variant of COVID-19 there are concerns that international borders may remain closed throughout this season.

Will workforce shortages influence the productivity of the horticultural industry?

Surprisingly when looking at evidence that ABARES has collected on the productivity of the horticultural industry with closed borders it would appear that workforce shortages have had little effect on the industry.

ABARES has been surveying farmers about their labour use (including Australian residents and overseas workers) for several years. In 2021, data describing the use of labour on farms and the profile of farmworkers has been collected through ABARES Horticulture labour force survey. The survey results are based on a weighted sample of 3,429 horticulture farms across Australia. The survey found that the number of workers employed in horticulture dropped by 8% or 11,000 in 2020-21 from the previous year. However, the overall horticulture output levels are estimated to have remained stable. It is thought that the reason output levels have been able to remain stable is due to an improvement in seasonal conditions.

Over 50% of farmers reported having more or much more difficulty recruiting in 2020-21 compared to 2019-20, with only 2% reporting less difficulty.

How many international workers are needed on Tasmanian farms?

According to ABARES data in the peak month of January 11,000 workers are used on farms in Tasmania. Of these 2500 are working holidaymakers and 1800 arrive under the Pacific Australia Labour Mobility (PALM) Scheme. Therefore, international workers make up approximately 40% of Tasmania horticultural labourers in the peak months.

However, it appears Tasmanian farmers are confident they can handle whatever comes their way with Rabobank’s latest quarterly Rural Confidence Survey showing that Tasmanian farmers remain among the most confident and optimistic in the country.

Information from the Australian Government Department of Agriculture, Water and the Environment. https://www.awe.gov.au/abares/. Australian Broadcast Corporation https://www.abc.net.au/