Appendix II: Taumarunui: Farming-Community Linkages

Social Indicators

Population

The total population of Taumarunui has experienced a steady decline since 1980, with a loss of 1401 people in 20 years. The most significant losses were experienced between 1986-1991, with a reduction of 327 people, and 1996-2001 with 696 people leaving. Changes in age distribution show a generalised reduction in population under 40 years and a relatively stable population in the over 40 year age bracket, with the 60+ bracket showing the only increase. Reasons behind these trends will be examined in later sections.

Maori population shows a significant increase of over 900 people since 1981, while the European population has decreased by over 1900 people (Appendix Figures 17-19).

Appendix Figure 17: Taumarunui Borough Population, 1981-2001

Census Year	1981	1986	1991	1996	2001
Total Resident Population	6540	6468	6141	5835	5139
Population Distribution (Age)
0-14 years	1902	1821	1755	1674
15-19 years	699	573	462	378
20-29 years	1056	1116	924	735
30-39 years	879	909	876	819
40-59 years	1245	1221	1074	1209
60+ years	837	852	960	915
Population Distribution
(Ethnic Origin)
European	4776	4036	3527	2871
Maori	1512	2229	2334	2475
Pacific Islands	45	36	36	39
Asian	42	63	108	93
Other	18	6	3	6
Not Specified	129	123	33	249

Appendix Figure 18: Taumarunui Borough Population —Age/Sex Distribution

Appendix Figure 19: Taumarunui Borough Population —Ethic Distribution

Employment Status

Employment statistics for Taumarunui show evidence of instability, especially between 1981 and 1991, with the level of unemployed rising from 2 percent to 5.6 percent of the resident population. However 1996 statistics show a reduction in unemployment and the addition of 2001 census data will show if this trend is continuing.

The rising unemployment in 1986 and 1991 can be attributed to a process referred to in Kelsey 1995, ‘The New Zealand Experiment-a World Model for Structural Adjustment’ of government restructuring and corporatisation of government operations, such as health facilities, railways and Ministry of Works, as well as changing government agricultural and export policies eg. phasing out SMP (supplementary minimum price) to encourage market liberalisation. In addition world commodity prices were falling and farmers also suffered rising levels of interest and inflation (Wilson 1995). The impact of these changes on the farming sector can be seen with the reduction in unpaid household/family business workers and increase in part-time workers (Appendix Figure 20). This trend is indicative of the need for farming partners, who previously managed the household, to take on off-farm paid work to supplement the farm income (Le Heron et al 1991 in Wilson 1995). The changing balance between self-employed status and wage/salary earner may also reflect employment uncertainty during this 10 year period. It may be explained by the increases in rural contractors and tradesmen, with people searching for alternative means of income (Appendix Figure 23 —1987).

The rate of unemployment is still considered high, especially rates of unemployed Maori, and obvious concern is evident by the addition of local training and education facilities such as, WINZ funded, Challenge training, opened in 1996, and the Maniapoto training agency, established in 1990. Both are designed to deal with long-term unemployed, encouraging motivation, organising C.V’s, interview training and organising work experience positions. Maniapoto also provides work-specific training programmes in forestry, silviculture and agriculture. An interview conducted with Maniapoto management indicates that work-specific programmes have been added to promote local employees within developing local industries. Impediments to success include conflicting employer/employee expectations regarding working conditions, competition from more appealing employment options out of the area and changing methods of industry management eg. Carter Holts’ ‘no pruning’ policy referred to later.

Occupation

Census statistics provide evidence of reduced employment in agriculture following the Labour Government farming subsidy cuts of 1984/85 with 78 less employees between 1986 and 1991. Figures do improve between 1991-1996 with a rise of 60 employees in farm/forestry. This may be linked to diversification into forestry, that provided some short term employment for planting, and other farm restructuring/diversification strategies that may have initiated new employment opportunities. Increases in professional and managerial occupation employment is also likely to be linked to farming diversification as the need to introduce new technologies and management techniques has become an essential part of remaining competitive (Appendix Figure 21). To accurately assess if restructuring, diversification and training schemes are having a positive effect on local employment opportunities it is necessary to add 2001 census figures. This is due to the upturn in the export market in 2000 and 2001 and the stabilisation of the local rural economy. It has been indicated in some interviews that many farmers have only recently begun to ‘break even’ after the rural decline of the ‘80s and ‘90s therefore 2001 statistics will be the best indicator of the assumed positive trend.

The large decline in three of the occupation categories, clerical, sales and production (Appendix Figures 20, and 21) are likely attributed to hospital and railways restructuring and the works depot closure. The more recent freezing works closures (1997/98) are likely to have further reduced employment in these areas as workers and families have had to leave the area in search of employment. These assumptions are verified in a recent study by Joseph et al 2001, ‘Dealing with Ambiguity: On the Interdependence of Change In Agriculture and Rural Communities’. Interviews with hospital management and business/economic development spokespeople for the area say that the loss of these jobs has had a huge impact on the local community and it is the focus of development groups to encourage new employment ventures, especially in tourism. As recognised in Bedford et al. 1999 there is a growing acknowledgement by the community that agriculture alone can no longer provide sufficient employment and income to ensure the continued viability of the community.

Community motivation toward increasing business and employment opportunities in Taumarunui is made evident in the strong local interest in MAF’s ‘Sustainable Farming Fund’ offer. Sixty-four project applications were submitted to the newly formed district council partnership that combines Wanganui, Rangitikei and Ruapehu. These individual applications have been combined into eight wider scope projects, in an attempt to benefit the majority, with long-term benefits that will be applicable in some way to all the individual projects. Project ideas identified by the Economic Development Officer for the district include tourism ventures, identification of possible areas of horticulture/agriculture diversification by creation of an extensive soil/climate evaluation for the area, and new marketing strategies for the local area that encourage tourism, outsider investment and continued local support. All these projects are expected to provide increased employment opportunities for the area.

Appendix Figure 20: Taumarunui Borough: Employment Distribution, 1981-1996

Income Support

Census figures show a substantial increase in the number of unemployment beneficiaries over the past 20 years. The most significant rise of 450 people is recorded between 1986 and 1991 and is likely to be due to the combination of Government restructuring, subsidy cuts etc referred to earlier. The reduction in family-related benefits, after 1991, is likely to have contributed to falling population in the under 40 years age bracket, with local unemployed being forced to move out of the area to find work, in order to support their families, because benefits alone became inadequate.

Appendix Figure 21: Taumarunui Borough: Employment, 1981-2001

Employment Status	1981	1986	1991	1996	2001
(Taumarunui borough)
Full-time in Labour Force	2727	2514	1935	1438
Part-time in Labour Force	192	480	474	501
Non-Labour Force	1698	1659	1932	1692
Self employed with employees	144	189	171	138
Self employed no employees	123	165	138	174
Wage/Salary earner	2310	2391	1698	1542
Unpaid Worker in Family
Business/Household Duties	1029	24	30	78
Unemployed/Seeking Work	132	216	348	291
Occupation
Professional/Technical	312	372	396	381
Administrative/Managerial	63	66	207	201
Clerical and related	414	456	252	204
Sales and Service	531	597	309	300
Agriculture/Forestry/Fisheries	150	189	111	171
Production/Transport/Labourers	1131	1077	744	648
Income Support Receipt
Unemployment	99	258	708	543
Family Benefit	N/A	999	1146	N/A
Family Support	849	411	504	N/A
Domestic Purposes	9	168	306	279
National Superannuation	762	831	855	768
Sickness/Invalids	33	96	114	237
Student Allowance	N/A	N/A	42	63
ACC	N/A	N/A	84	111
None	2577	2184	-	-
Other	93	3	96	144
Total	4422	4950	3856	2145	2428
					WINZ '00
Past Tertiary Education/Qual.
University Degree	111	171	138	108
Teachers College/Nursing Cert.	63	243	213	258
Polytechnic/Trade Cert.	387	486	534	378
Other	279	192	318	258
Still at School	240	96	81	-
No Qualification	2586	2037	1836	1980

Source-Statistics NZ-Census
Data 1981-2001

Education

Census figures show a decrease in the Taumarunui population with no formal qualification between 1981 and 1991, and this period also sees an increase in polytechnic and alternative education providers over universities and teacher/nursing training. 1996 figures show people with no qualifications beginning to increase again and a reduction in university and polytechnic qualifications. Teacher/Nursing training qualifications, however, have increased, probably due to increased government incentives in these areas (Appendix Figure 21). An interview with management of the Taumarunui regional polytechnic indicates a reduction in interest in farming courses since 1997 and an increase in automotive and administration/computing courses. This is due to the establishment of other education providers as well changing attitudes of youth toward the agricultural/forestry sector as a career.

Overall role numbers have remained relatively stable for tertiary providers, however, the primary sector has suffered role reductions and subsequent closures due to local unemployment increases. For example the closure of three primary schools that can be attributed partly to the closures of Affco meatworks and Tangiwai sawmill (NZ Herald Jan.1998) that resulted in job losses and families leaving the area in search of work. Childcare education facilities, for example Kindergartens and Kohunga Reo, have remained stable and statistics in no way reflect the reduction in population in the youth category. The recorded increase in playgroups and play centres, from nine to fifteen, between 1981 and 1987 could be linked to the increased need for farming households to seek off-farm employment during this period, and hence the need for extra child supervision.

Appendix Figure 22: Taumarunui Hospital Restructuring, 1981-2000

Taumarunui Hospital 1981

: 140 beds

: Taumarunui Hospital Board

: Full 24 hr surgical and emergency.

Facility

: Specialty orthopaedics servicing

the wider region

: 96 Nursing staff

: 5 Medical officers (Taumarunui Borough)

: 5 G.P's "

: 2 Specialists "

1991

: 40 beds

: Crown Health Enterprises

: Day elective surgery

: 24 hr limited emergency facility. – serves

mainly as transfer point to Waikato Hospital

: 68 Nursing staff

: 3 Medical officers (Ruapehu district)

:11 G.P's "

: 2 Specialists "

: 9 Other Health Professionals "

2000

: 21 beds

: CHE

: Further reconfiguration - removal of

unnecessary buildings

: 43 Nursing staff

: 1-3 Medical Officers (Ruapehu district)

: 8 G.P's "

: 1-2 Specialists "

: 14 Other Health Professionals "

Source: Ministry of Health Records 1981-2000

Healthcare Provision

The changes that have occurred at Taumarunui Hospital have arisen because of the reduction in the local population that makes it uneconomical to continually upgrade the facility to match advancing technologies, according to Hospital management (Appendix Figure 22). Another limiting factor is the difficulty experienced in adequately staffing the facility, due to Taumarunui’s isolated, rural image that remains unappealing to many medical specialists and hence leads to staff shortages and over-work (Sunday Star Times 17 Oct.1999). Attempts have been made to limit inconvenience to the community such as, a free bus service to Waikato hospital, provision of visiting specialists and provision of 37 community service staff (eg. public health nurses and occupational therapists). Improved roading also makes the travel to Waikato easier but there remains mixed opinion as to whether or not the present situation is adequate. For self-employed or those with family commitments, for instance, the travel to Waikato can cause major inconvenience. Unfortunately, the impacts of population decline have already done the damage and it is unlikely that any kind of economic upturn in the near future will alter healthcare provision at this level. The diminishing population isn’t necessarily resulting in reduced demand for healthcare. The emergency workload at Taumarunui Hospital is recorded to have doubled between 1999-2001 (Waikato Times, 7 Sept, 2001). Health providers such as the Taumarunui Community Kokiri Trust have also recorded increased demand for services in childcare/plunket, family planning etc that has resulted in expanded service provision and staff increases from three to forty since 1990.

Sports/Social Clubs and Volunteer Activities

Clubs have continued to show a strong presence from 1980 till the present day, according to the clubs and organisations listings in the Ruapehu A-Z, with the period between 1992 and 1997 being the only noticeably unstable time shown by 10 club closures. Interviews with local farming families indicated that increased stress and workloads, resulting from the rural decline of the 1980s and 1990s, affected the ability of many to participate in extra activities and voluntary services. This may explain the reduction in clubs because many survive on funding from memberships and are often reliant on volunteers to provide organisation and management skills to ensure their continued viability.

Economic Indicators

Business Data – rural

Rural business statistics emphasise the increase in farm/forestry consultants and management (Appendix Figure 23). This change has been emphasised by all interviewees involved in the agricultural sector. One person interviewed, who is responsible for management of combined trust land holdings of approximately 16,000 ha, explained the need for ‘smarter farming’ to survive. He suggests that the ‘scatter-gun approach’ employed by many traditional farmers is no longer suitable for effective management in an industry heavily reliant on it’s flexibility to adapt to changing economic and political climates. A ‘collective-progressive approach’ is now necessary and in many businesses this is achieved by the input of outside specialists. This may be on a short-term basis for implementation of new strategies and techniques or as permanent management. A farm consultant interviewed confirmed the increased need for consulting services. He has experienced ongoing change however regarding the services required and attributes this to farmers’ increased ability to access information and to continually advance their skills. ‘Consulting fifteen years ago was very generalised, whereas today’s farmers are generally experienced managers and look to consultants for more specialised services that they cannot access for themselves’. The majority of Taumarunui farms today have computerised records/accounting systems to meet the requirements of high quality, high security exporting specifications. This takes planning and organisation that was not as essential 20 yrs ago.

The increase in rural contractors again emphasises farm restructuring and the increasing tendency to employ staff on a contract basis. This enables staff to be employed that are suitably qualified for the job required and it also allows for flexibility in staff numbers to suit the workload and economic climate. This trend toward contract employees is also confirmed in Appendix Figure 23, with a reduction in wage/salary earners and an increase in self-employed workers.

Agricultural Machinery and servicing businesses appear to be the main sufferers during the mid-1980s downturn with a drop to just one provider in 1987. Farmers interviewed confirm this trend and attribute it to the need to reduce expenditure on any non-essential goods and services, during this period, in order to survive. Agricultural suppliers’ statistics show more stability during this period. This is probably due to two factors, firstly many are part of nation-wide companies (e.g. Wrightsons) that are better equipped to survive a downturn and secondly smaller suppliers have noted that the ability to diversify into new products and services helped to retain viable businesses. The two other categories listed Agric. Products-processing and purchasing and Carriers appear relatively stable except for the 1987 period when business numbers saw significant increases. A possible reason for this could be farmers attempting to supplement their income by trying other business ventures, this is purely speculatory however, but increases in these businesses at a time when the economic situation was so unfavourable is difficult to account for.

Business Data – Domestic

Domestic retail data appears to show trends more suitably linked to the general population decline than to the changing rural climate (Appendix Figure 23). Retail businesses have shown a relatively steady decline and numbers are, so far, unaffected by the improving economic situation local farmers are experiencing, due to continued increases in stock value for the second year in a row (Ruapehu Press, 16 Jan, 2002). Retail business numbers prove to be an inadequate indicator of linkage between the rural economic climate and community retail sector because the improved rural economic situation is so recent. An interview with a Taumarunui Enterprises Inc organiser and local residents provides more relevant indication of the strength of rural-community linkages. It is noted that the first business’s to benefit from the economic up-turn are rural suppliers because farmers’ first spending priority is on fencing maintenance and fertiliser inputs. Domestic service providers are also recording increases in business, for example one local kitchen cabinetry business and a local mechanic have both got backlogs of work due to a recent increase in demand. It is clothing, food and electrical suppliers that are less likely to experience an increase in business and this is due to improved roading and more competitive prices at Hamilton stores that makes it difficult for small local businesses to compete. Rural machinery suppliers also suffer this market trend, with the abandoned local A&P show no longer providing an easy marketing point, many farmers are said to save their purchasing for the out-of-town field days where they are assured latest equipment and competitive prices. Breakdowns in the rural-community linkages such as these appear to be best repaired by specialisation and improved customer services. Local domestic retailers comment in a Waikato Times feature article (26 October, 2001) that specialisation has helped to keep a business profitable and has attracted regional customers from Wanganui, New Plymouth etc who will make a point of stopping as they pass through. Others have survived by increasing services such as catering to special orders.

The restaurant data appears to reflect the downturn of the mid 1980s and an upturn since 1997. The upturn is likely to be largely due to the increase in marketing of the area and the expansion of tourism ventures. This trend is also seen in accommodation statistics, however, the recent numbers are somewhat inflated due to the inclusion of booking agents based in Taumarunui that serve the Ruapehu ski area.

Appendix Figure 23: Taumarunui Business Structure, 1982-2002

Business Data	1982	1987	1993	1997	2002
(Taumarunui borough)
Rural:
Rural Contractors	11	18	15	20	26
Farm/Forestry: Consultants
or Management	1	4	4	5	8
Agricultural Products:
Processing or Purchasers	2	9	4	4	4
Agricultural Suppliers	3	6	6	6	7
Agricultural Machinery and
Servicing	4	1	4	2	3
Carriers-transport	4	10	6	7	5

Domestic:
Retail	63	55	56	52	40
Restaurants/Cafes/T.Aways	15	12	13	16	18
Car/Bike/Boat Sales and
Service	30	33	30	30	25
Accommodation	7	7	13	21	22
Tourism Operators	1	1	1	4	7
Tradesmen	13	33	24	22	24
Professional Services	1	5	9	8	8

Source-Ruapehu A-Z
Business Directories
1982-2002

Environmental Indicators

Rural Land Use

The most significant change apparent in the farming statistics in Appendix Figure 24 is the reduction in grazing/pasture land and the large increase in forestry land. This trend has been mentioned by most people interviewed and is, in general, seen as a negative change for the area. A forestry advisor interviewed stated that the diversification into forestry on marginal land is undoubtedly beneficial to the farmer and for local employment because small scale planting and pruning ventures are often serviced by local workers. The large scale land purchases, by Carter Holt in the early to mid 1990s that have led to the large increase in forestry in the area, have not served to benefit the local community. These purchases resulted in the loss of farmland and associated employment, and the majority of the employment that was created replanted, was contracted to companies from out of the area. The Carter Holt ‘no pruning’ policy further reduced employment opportunities for the area.

Other land use changes, identified by those interviewed, are an increase in small lifestyle farms sought by retired migrants from Auckland and other cities and an increase in farm tourism operations.

Appendix Figure 24: Ruapehu District Farming Statistics, 1981-2000

Farming Statistics	1981	1987	1991	1994	2000
(Ruapehu District)
No.of Farms	626	656	793	827	1177
Land Use: hectares
Grazing/Pasture	455,300	226,990	278,660	281,850	315,042
Horticulture/Crops	766	421	753	826	916
Forestry	8190	10,210	26,390	26,770	51,633

Working Owners	717	678	801
Full-time Staff	266	208	291

Source-Agricultural Statistics1981-1994
Source-Agribase 2001 (created from volunteer census response, approx. 90% coverage)

Farm Restructuring

Some of the restructuring trends for Taumarunui have already been covered such as increased use of farm management and consultants and computerisation of records and accounting. The idea of diversification into forestry has also been discussed but farm diversification in the last ten years has also included deer farming, tourism ventures and new types of horticulture.

A former sheep farmer, now deer farmer and game park tourism venturer, explained his reasoning for diversification. It was triggered by the downturn in lamb prices, when he received a cheque for $1.04 for a prime lamb that in today’s market would be over $100. Deer farming initially proved to be a profitable enterprise, but Government legislation has proven to impede both economic and social profits. Requirements for possum control, for instance, have proven extremely costly and changes in staffing liabilities have made it too risky to provide the preferred, apprentice type, scheme. Specialised staff are now employed on a contract basis resulting in less chance for employment from within the local area. The move into tourism is seen by this interviewee and others as being the most profitable form of land use in Taumarunui, given the availability of land and the price, and it’s centrality to so many existing tourist destinations. It is also seen as the most likely way to maintain effective rural-community linkages that have diminished since the closure of local rural processing plants, the change to contractors and the increasing competition from Hamilton suppliers. There is also a strong interest in finding other methods of utilising the land and new horticultural ventures are being established such as growing lavender. Impediments to these ventures are seen to be the lack of current research into soil and climate in the area that creates risk for investors. Problems such as this are being dealt with by the Economic Development Officer appointed by the Ruapehu District council in October 2000 to develop farming production and tourism in the area. Initiatives such as the Sustainable Management Fund (referred to earlier) are seen as a means to remove some of these impediments and thus attract business investors into the area that will lead to increased employment opportunities and help maintain some farm-community linkages.

Contact for Enquiries

Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND

Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
Contact this person