Run rings to cut labour costs
Run rings to cut labour costs
HARD-PRESSED Welsh producers are flocking to offer their labour either on or off the farm via machinery rings. And the Welsh Development Agency, which is involved in administering the rings, is urging more producers to follow suit.
"Machinery and labour account for as much as 60% of a farms costs. It is important for producers to look at farms in a more business orientated way. When there are opportunities for them to reskill and do part-time work off the farm, they should consider them," says WDA agri business manager Bryan Edwards.
Non-agricultural part-time work on the machinery rings database includes factory work, HGV driving, and waitressing, says WDA administrator Jill Lloyd. "These jobs can be fitted in around the farm. Producers may decide they want to work two days a week or perhaps for a three month period at a quiet time of year."
Labour accounts for 80% of transactions for the north Wales ring, according to Dewi Jones who manages all three rings. "Over the last three years we have moved from having £15,000 worth of labour on the database to £100,000 worth. This includes relief milkers and lambing staff.
"Farmers are keen to use staff when they need them rather than having to retain them full time whether it is a busy time of year or not. Keeping a farm worker full-time may cost £7.50/hour: Even if it costs this much an hour to employ someone on a part time basis it still works out cheaper."
Each ring member must pay an annual membership fee of £50 and is charged 2% commission whether they are offering or buying services or machinery.
Employing part-time staff through machinery rings offers an economic way to source labour when it is needed, says Dewi Jones.