Food and Beverage Manufacturing

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Detailed pathways for Food and Beverage Manufacturing

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Who's this plan for?

Dairy processing

Meat processing

Retail meat (butchery)

Baking, beverage manufacturing

Food manufacturing

Alcohol manufacturing (excluding wine)

The food and beverage manufacturing sector employed 87,023 in 2023, with a highly diverse workforce. However, forecasts show, the sector will need to fill over 28,000 job openings over the next five years to 2029, an average of 5,600 per year, to meet the industry's needs to grow and ensure continued productivity (Infometrics 2024). Our industries face global talent competition, particularly in areas of technical skill.

Overview

What matters to Industry Matters to us

Hanga-Aro-Rau engages with the sector through our Industry Stakeholder Group (ISG) and National Industry Advisory Group (NIAGs) composed of industry leaders from around the country. This is supported by regular site visits and engagements with sector associations, business owners and key stakeholders annually. We have heard what issues the food and beverage manufacturing sector is facing specifically and below have outlined our planned actions to address each priority.

Strong Workforce Pipeline

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Attracting and retaining talent in the food and beverage manufacturing sector presents several challenges. One key obstacle is the perception of the sector itself. Often, it's seen as offering limited career advancement opportunities or lacking clear pathways for professional development. In addition to the Cross-Sector Action Plan, which identifies the common pain points and actions identified across the nine sectors, there are several significant challenges to attracting and retaining talent in the food and beverage manufacturing sector, including:

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Lower-skilled jobs: 60% of the food and beverage manufacturing workforce is employed in lower-skilled roles. (Infometrics 2024).
Leadership training needs: There's a significant need for greater leadership training and support across all industries within the food and beverage manufacturing sector.
Competitive global stage: New Zealand food and beverage suppliers are racing to compete on a global stage, necessitating the replacement of historical products, strategies, and systems.
Top 5 skills shortages: According to insights gathered through our Industry NIAG, the following are the key skills lacking within the workforce:
- Effective workplace communication skills.
- Skills in leadership, line management, and decision-making.
- Lack of proficiency in data analysis, hindering effective decision-making and strategic planning.
- The ability to solve problems and think critically.
- Training in quality assurance is needed across all levels of the sector to ensure compliance with standards and regulations.

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What action is Hanga-Aro-Rau taking?

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In addition to the actions outlined in our Cross-Sector Action Plan, specific actions aligned with the food and beverage manufacturing sector to support a strong workforce pipeline are:

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Youth employment support: We are engaging with Auckland City Council’s Youth Employer Pledge and regional Inspiring the Future events to promote youth employment.

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‍Leadership feedback and development: Empowering existing leaders to provide direct feedback via the National Industry Advisory Group (NIAG), engaging them in qualification reviews and development, particularly focusing on Level 4 and Level 5 qualifications.

Qualifications and Recognition Challenges

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In addition to the Cross-Sector Action Plan which identifies the common pain points and actions identified across the nine sectors, there are a number of significant challenges to qualifications and recognition in the food and beverage manufacturing sector, including:

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Engagement: Limited training flexibility and recognition of skills leading to slow engagement and low motivation among learners.

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What action is Hanga-Aro-Rau taking?

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‍Micro-credentials development: Supporting the development of micro-credentials to offer flexibility in training, recognize skills gained, and allow for faster engagement and motivation among learners. Advocating for improved funding for these initiatives through advice to the Tertiary Education Commission (TEC).

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Hanga-Aro-Rau is undertaking several qualification reviews for the food and beverage manufacturing sector – you can find more information about these and how to get involved here. And follow the links to find out more about interim rulings, or quals reviews coming up from Hanga-Aro-Rau.

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Size of the sector

GDP: In 2023, Food and Beverage processing industries contributed $10.5 billion to the GDP - 2.8% of the total economy.

No. of businesses: (2023) 5,547, baking 29%, dairy processing 8% and meat processing 6%.

Māori-owned businesses: (2020) The sector had 15, or 2% (in 1/3 where ownership data was available).

Employment and people

Employment: F & B employment continues to grow and is forecast to reach around 95,000 in 2029, around 8,000 more than 2023.

Number of Māori employed

Ethnicity data for sector

Age breakdown:15 to 24-year-olds stayed at around 16% (2015-2020), 55+ age group grew from 18% -19% over the same period

Gender split: Slightly over a third (37%) of the workforce is female, up from 35% in 2015.

Trends and Forecasts

New entrants: From 15,000 to 18,000 between 2015 and 2021. Most from other industries, showing opportunity for attraction.

Retention of new entrants: Of the 2015 new entrants, the proportion of each age group who remained after 5 years is as follows:

Overall retention: Of the 2015 workforce, 41% remained in the industry after 5 years, and 35% were in the same job after 5 years.

Forecast: 28,000 openings over the next 5 years (average 5,600 p/a) 23% due to growth and 77% due to workers leaving/retiring.