Understanding on-farm workplace productivity drivers

Every year, around 5000 people leave the dairy sector, according to DairyNZ research. While turnover rates are similar across the primary industries, dairy sits higher than some of New Zealand’s top-performing sectors.

Staff turnover comes at a cost, not just in dollars but also in time, productivity and team culture. Once recruitment, training, lost time and reduced productivity are considered, replacing a team member can cost anywhere from 30% to more than 100% of their salary.

Improving working hours can support retention. However, adjusting those hours by reducing weekend work or overall load can be challenging without affecting productivity. That’s why it’s essential to understand how time is actually spent on-farm — and how different strategies can unlock both time and productivity gains.

DairyNZ’s Workplace Productivity Study was launched to better understand how time is used on dairy farms, and what drives differences in productivity. Previous surveys have provided useful benchmarks, showing a close link between hours worked and herd size (see Figure 1). But they haven’t explained the drivers behind those hours — such as farm systems, business goals, or what happens when hours are reduced.

One key finding was the wide variation in hours worked on similar-sized farms, and no clear link between hours worked per cow and production per cow. The data also doesn’t reveal how time is spent on core tasks like milking and calf collection versus more discretionary work like repairs and maintenance.

Different farms, different strategies

To better understand workplace productivity on-farm, we developed case studies to explore what work is being done, how long it takes, and why, so we can see how farmers make the most of their time.

We’re working with 10 farms that take different approaches to optimising workplace productivity. They represent a mix of business structures, herd sizes and farm systems. We’re visiting them at key points through the season to gather insights into how much they work and how long different tasks take.

Different strategies are being used across the case study farms. Milking frequency varies, with one farm moving to once-a-day (OAD) milking to help reduce hours. They focus on doing the essentials well, cutting back or removing tasks where possible — for example, using only bulls to avoid artificial breeding and rearing calves for sale while buying replacements. This approach lets them manage 500 cows with two full-time people, with productivity boosted by the owner being hands-on and making quick decisions.

Another farm uses OAD milking and animal movement technology to graze smaller mobs, maximise pasture growth and harvest, and reduce labour.

A third farm, with a strong team culture, is focused on being a great place to work. They run a five-on, two-off roster, hold regular team breakfasts, and employ extra help who live locally and work four days a week. They recently completed the Coast to Coast as a team.

Some farms have areas where they could improve efficiency, but are limited by infrastructure, such as small or ageing sheds, so they have focused on improving their hours by other means or in different areas.

What’s becoming clear is that there’s no one-size-fits-all answer. Workplace productivity optimisation means different things to different farmers. Their reasons vary, from reducing debt and improving cash flow to creating more time for rest, family and personal interests, or growing their farm team.

For those highly productive case study farms, a key theme is hours and team engagement. Are teams focused on doing their best work efficiently in the time available? And how adaptable are they when changes, such as new technology, are introduced?

Time savings bring new opportunities

When farms save time, it can benefit both the business and the team – whether that means more time off or tackling tasks that add value. It all comes down to the farm’s goals and the team’s priorities.

Some case study farms focused on reducing task time to change hours worked. For example, one farm set a policy of no work outside 7am to 5pm.

On another farm, during mid-late lactation the team found that while core tasks took less time, the team sometimes lacked the skills to fill the extra hours productively.

Reducing milking frequency or adding technology isn’t a silver bullet. It’s important to think about how these changes fit within the wider farm system, and take the time to work out how to get the best value from them.

This also opens discussions with the team. Do they prefer more hours in one part of the year and fewer in another, or would they prefer more consistent hours?

If there is less work to do, offering more time off can be a win-win, but there still needs to be a balance to ensure that key tasks are completed to a high standard and not rushed.

Productivity is key to success on dairy farms, but there are multiple levers you can pull to get the best out of your time and team. Whether it’s adjusting milking frequency, incorporating technology, or refining your farm’s organisation, the goal is to maximise efficiency without compromising results.

As part of this project, we’re developing a suite of metrics to measure productivity. Next season, we’ll use this data to design examples of highly productive farms, showcasing the tools and strategies that could work for different farm systems and goals.

Find out more about the workplace productivity study at dairynz.co.nz/productivity-study

There are a wide range of options to help optimise productivity — it’s about finding the ones that work best for your team, goals and system.

Find resources and tools to help you create a productive workplace at dairynz.co.nz/workplaces

Keeping the day on track

At Highveld Pastures, the team sometimes wonder if they’re doing enough – especially when neighbouring sheds are lit up earlier or later. But equity manager Flo Coetzee is confident in their approach: “We get the job done – that’s what matters.”