Peak industry body AusVeg produced a study using data from the Australian Bureau of Agricultural and Resource Economics and Sciences. According to this study, vegetable growers can increase their productivity by producing a single commodity and investing in labour that is specialised for a single crop.
The analysis presented productivity estimates for the lettuce, carrot, green pea and potato industries. The results showed that the largest returns from crop specialisation occur within the carrot industry, as these farms could benefit from an increase in efficiency by an average of 88 kilograms of production for each additional week of labour.
AusVeg Economist Andrew Kruup said the results from the economic analysis indicated farms that specialise in growing fewer crops were likely to have much more productive employees.
“One explanation for the enhanced productivity is the fact that employees are able to specialise in completing routine tasks,” said Mr Kruup.
“This is in contrast to other farms that produce multiple crops, where employees may be expected to complete multiple tasks for different crops.
“The effect of these additional work requirements can create complexities for the employee that can stifle their productivity.
“Some growers typically like to diversify their crop production by producing many different crops.
“A benefit from this approach is the ability to diversify away from market price fluctuations. However, this study shows that one potential cost of crop diversification is a significant fall in labour productivity.”
Source: weeklytimesnow.com.au
