Cornwall Council is the largest Rural Unitary Authority in England with a population of 573,299.  With a higher-than-average age demographic, sea on three sides, a low population density and an economy that does not benefit from the agglomeration impact of a large municipal area we therefore have a more limited local labour market than many other areas of England.

Our concerns relating to access to labour in many sectors of the Cornish economy have been fed in previously to Government on numerous occasions and have recently been discussed with our MP’s in September 21.  In common with many areas of England Cornwall faces acute labour shortages in  sectors of our economy (health and social care, hospitality, distribution, etc) but this response relates specifically to the agricultural and horticultural[1] sector which represents a greater percentage of our economy than most areas of the UK, see table below.

Currently over 95% of field operatives are EU nationals with pre settled status or migrant workers who are in the UK under the current Seasonal Agricultural Workers Scheme (SAWS- which is still a pilot and has yet to be confirmed beyond 2021 and does not currently cover non-food crops).  The jobs on offer tend to be manual in nature and very seasonal and there have been many local and national press reports on this issue that help to illustrate the seriousness of the issue.  A selection of these are included in Appendix 1.

In Cornwall the crops involved (predominantly cauliflower, cabbage, daffodils, bulbs, potatoes and courgettes) have long growing periods (e.g. daffodils can be 2 years between planting and harvest and Cauliflower can be up to a 12 month process from seed purchase to harvest) and so the industry has to plan ahead to meet their supply contracts. Doing so when there is no certainty over labour supply for the 2021/22 harvest period is challenging at best and a gamble at worst. 

Increasing evidence from businesses in Cornwall would illustrate the seriousness of the situation and the potential long-term impact if access to non-UK based seasonal workers is not resolved. Further background and quotes from businesses can be found in Appendix 1. 

After the closure of the governments “Pick for Britain” campaign the DWP and the NFU have teamed up to try and promote jobs in the sector to UK residents Farmers with labour vacancies told to ask DWP for help - FarmingUK News but as yet it is uncertain how successful this has been and the general view is that it will not generate sufficient numbers in the short term. Evidence from local business during 2020 would demonstrate that despite significant initial interest in the roles on offer the number of UK residents who took actually progressed to interview was very low with the number taking up the roles on offer being even lower.  One large grower in Cornwall stated that they had over 250 initial enquiries, of which 100 people progressed to interview, of which 33 took up the offer of employment, of which 10 remained in the roles for the harvest season.  In addition, it was noted that the productivity of UK resident workers fell below that of migrant workers by a considerable margin.

NFU Vice President Tom Bradshaw has also recently stated that "For the past 18 months food and farming businesses have been working hard to keep shelves and fridges full of nutritious and affordable food, but businesses throughout the supply chain in a wide variety of roles are really feeling the impacts of the workforce shortages.  At the very start of the supply chain, farm businesses are feeling the pressure. For example, horticulture farms are struggling to find the workforce to pick and pack the nation's fruit and veg, with some labour providers seeing a 34% shortfall in recruitment”.   

He also stated that "Farm businesses have done all they can to recruit staff domestically, but even increasingly competitive wages have had little impact because the labour pool is so limited – instead only adding to growing production costs. It is simplistic to argue that the end of furlough will see many more people meeting this shortfall, but furloughed workers are concentrated in urban areas and not where many agri-food roles are located. A solution to this crisis will need the right people with the right skills and training available in rural areas where many roles are based”.

To address these concerns the NFU, in partnership with the Food and Drink Federation has called on Government to introduce a short term Covid Recovery Visa, alongside a permanent Seasonal Workers Scheme as an effective route to help the pressing needs of the industry. They suggest that this would give the industry time to invest in the skills and recruitment of a domestic workforce that will help to provide long-term stability.  Whilst some UK residents will find roles in the sector the industry view is that they will not replace the bulk of the labour force especially in the short term.  With crops in the ground awaiting harvest in the 2021/22 winter period this is represents a significant business risk.  Pay rates on offer often exceed other opportunities in the labour market (with £20 an hour possible) but the seasonal nature of the work, the fact that the work is manual/physical in nature and is outdoors are often cited as reasons why UK residents do not want to take up the employment opportunities on offer. 

George Eustice MP was quoted in an article in The Times in early January 21 about how he was “pleased that the SAWS scheme was extended in duration into 2021 and of his intent to ensure that it was extended into 2022 and that non-food crops should be included” but this commitment has yet to be delivered and therefore we are concerned that due to the lead times involved in securing staff for the 21/22 Autumn/Winter season any further delay will limit their availability to secure staff. 

Key points for the inquiry to consider: -

• The NFU/Food and Drink Federation intervention is useful to the food crop sector, but this intervention does adequately cater for the needs of the non-food crops sector which is of significant value to Cornwall and the Isles of Scilly.  We therefore believe that the EFRA inquiry needs to consider the needs of the non-food crop sector in their deliberations as often a grower of food crops is also a grower of non-food crops (or they rent land to a non-food crop grower) as part of their rotational choices.
• To prevent unharvested crops in the 2021/22 harvest period and the related contraction of the contribution that the agricultural and horticultural sectors make to the Cornish economy there is an urgent need for the Government to extend the current SAWS pilot scheme beyond 2021 as soon as possible.  Any expansion has to include both the numbers of workers who can participate in the scheme (noting the wider demands for migrant labour in other sectors) and expand it into the non-food crop sectors.  This will provide industry with a degree of certainty that will allow them to plan future crop rotations and to recoup the costs (and generate a profit) from the investment they have already made in planting/raising the crops.
• Cornwall Council is and will continue to work with industry stakeholders and other stakeholders (e.g. DWP, Job CentrePlus, etc)  to promote the roles on offer to UK residents in order to reduce the reliance on seasonal/migrant workers in the longer term.  More details of work in progress can be found in Appendix 1.

In terms of how cross-border trade flows with the EU are affecting the food supply chain whilst we recognise the integrated nature of our food supply chains and the need to ensure seamless trade flows in the food supply chain, we are concerned that the revised timetable for the introduction of checks on SPS imports from the EU will mean that checks on our exports will continue to remain in place whilst imported goods will continue to flow without reciprocal checks being in place.  At best this position creates additional costs for UK exporters which can reduce their competitiveness in EU markets and at worst it can close export markets for certain goods e.g. shell fish.  Therefore, the delay on introducing SPS checks on imports is of concern and any extension should be kept as short as possible. 

An important point to note is that if access to seasonal workers for the 2021/22 harvest season is restricted the likelihood will be that cauliflower, cabbage, etc will be imported from the EU to fulfil UK demand whilst UK grown produce is left to rot in the fields due to the lack of harvest staff.

I would be more than happy to provide verbal evidence to the inquiry if that would be useful.

Regards

Councillor Stephen Rushworth

Economic Portfolio Holder

Cornwall Council

Appendix 1

Agriculture and Horticulture is more important to Cornwall than other areas.  Whilst the sector is a 365 day a year operation the bulk of our crops are grown and harvested when other areas of the UK are unable to do so (i.e. in the Winter months where our average temperatures, low frost incidence and rainfall allow us to use our climatic conditions to our advantage).  The reduction/loss in productive capacity in Cornwall will lead to increased imports of vegetables from the EU with the resulting reduction in food security and increase in Carbon footprint. 

EU workers with settled status who used to work in agriculture have moved to other sectors that can offer better conditions, higher wages and all year-round employment thus reducing the number available to fulfil seasonal roles.  The industry has participated in schemes such as the “Pick for Britain” campaign (now closed by Government) but have reported a very low success rate. 

One grower said that they had 250 people express an interest through that scheme.  They contacted them all with details but only 100 responded.  Of those they were only able to secure 33 people over the summer months and that was to keep a “gang” of 17 in the field at any one time. Once the hospitality sector opened up again, they lost 10 on one day.  In addition, the work ethic/rate of this UK gang was in marked contrast to gangs made up of migrant labour.  During a 44 day period the UK gang only made the piece rate (i.e. harvested enough crop to get a piece rate that was higher than the minimum wage) on 4 days whereas the gangs that were made up of migrant labour exceeded the minimum wage threshold on every day.  The constant change of staff, the failure of some to turn up for work on a regular basis and the need to retrain new staff meant that the UK “gang” also took significantly more management time to manage than their seasonal/migrant colleagues.  The conclusion is that the productivity of the UK gang was lower than the other gangs and that as a result the business overall was less productive.

Whilst on the one hand the high unemployment expected due to the Covid 19 pandemic and the end of the Furlough scheme does create a theoretical labour pool for growers none of them relish the thought of using UK based labour as their motivation, physical fitness and commitment is lower than they have experienced with migrant labour.  There are exceptions to this rule of course but the following quotes have been received from businesses during August 2021 which illustrates their concerns based on their experiences in 2021: -

• “if we have to run our business based on the UK resident labour pool and people with pre settled status (i.e. no harvest staff available from the SAWS scheme) we would be out of business within 18 months”.
• “We have used Settled/Pre settled status workers this summer to work on our bulb grader as have two other growers that I have spoken to. Between us normally we would have employed a total of 20 people over 10 weeks.  Due to the shortage this year collectively, we had 14 and some weeks this fell to as low as 11 (it is worth mentioning that over the three farms 35 different people have come and gone to provide the 14 as more of the staff pick and choose where they work). This has meant that we have been approximately 35% down on our requirement. The partners in our business have on most weeks been working 80+ hours to get through the work and over 10 weeks places a monumental strain on all of us and our families”.

The industry in Cornwall and across the UK is still very concerned that the seasonal/migrant labour issue is being caught up in Government discussions relating to immigration when it should be treated separately in their view as an economic issue.  DEFRA is fully aware of industry concerns and direct discussions have been had with George Eustice MP who is supportive of their concerns.  However, it appears, from the outside at least, that DEFRA’s voice is being crowded out by the Home Office, DWP and the Treasury.  The industry in Cornwall is very concerned about the future and they are keen to reiterate that it will take time to reduce the reliance on migrant/seasonal workers.  They are also very keen to point out the following key points: -

• No pickers/field operatives no business
• Automation of picking operations unlikely in the short to medium term
• The majority of the crops are sold via supermarkets and whilst the cost of labour over the past 6 years has gone up by 38% (the cost of other inputs will have also increased) the price paid by supermarkets to growers has not changed in that period. 
• It is difficult to identify local workers to fulfil the roles on offer.  It’s easier in the pack house and management roles but in the field local workers represent less than 5% of the total.

Governments current immigration policy focusses primarily skills (i.e. qualifications) and key workers but field operatives are not considered for visa’s as they are not an exceptional case, a key worker or possess the sufficient skill levels to justify the minimum salary thresholds. As the roles on offer are seasonal it is not possible to pay the minimum salary rate and as field operatives are often paid on a “piece rate[2]” basis the actual wage paid varies significantly. The industry also suspects that with unemployment rising DWP will not be keen on allowing migrant labour to fill roles that can (in theory at least) be filled by UK residents. 

Recent press activity would also support the need to address this matter as a matter of urgency: -

• Ministers in immigration row over raising cap on seasonal farm labour | News | The Times
• UK farmers warn time running out to find labour for 2021 harvest | Financial Times (ft.com)
• Post-Brexit labour shortages deal blow to UK cannabis production | Financial Times (ft.com)
• Surplus pigs may be culled because of staff shortages, says meat industry | Farm animals | The Guardian
• Business leaders call for relaxation of post-Brexit visa rules | Brexit | The Guardian

What are we doing about this issue in Cornwall?

Discussions are already underway in Cornwall between farmers, Cornwall College, the LEP skills team, DWP and others to see what can be done with an agreement to pursue the following objectives: -

1. To develop an extended Seasonal Agricultural Workers Scheme that includes non-food crops in its scope and has a 10-year duration as this will give the industry a degree of certainty, they need to plan future cropping and investment decisions. 
2. To work with local employers on a promotional campaign that promotes the employment opportunities that exist in the 2021 planting and harvest season in Cornwall to the UK resident population. This should focus on the roles available, expected salary and working conditions/patterns (including whether there is accommodation provided), etc and will include targeting key cohorts of potential workers such as: -
1. Ex service personnel
2. UK residents who may have been made redundant due to the impact of Covid 19 who are looking for short term employment opportunities before they re-start their careers once the economy recovers
3. Post 16 students who are leaving School/College and are looking for work before moving into apprenticeships or further and higher education in September 2021
4. University students looking for work in the summer holidays whose “normal” employment opportunities may be diminished by the impact of Covid 19 (e.g. hospitality and retail)
5. Graduates who are leaving University in June 2021 and who are facing a challenging job market where graduate roles may be scarce
6. Residents of Hong Kong who are moving to the UK either as part of the visa scheme or on humanitarian grounds
7. UK residents who have been out of work for more than 12 months – as part of the restart initiative and other programmes that support people who have been unemployed for any length of time

3. To work with local employers to promote the employment and career opportunities that exist in the sector in the 2022 planting and harvest season in Cornwall and beyond to the UK resident population whilst also improving the employability of those furthest from the job market so that they can access the employment opportunities on offer. 

Economic data

Daffodil Industry in Cornwall

• The daffodil industry is worth around £100 million (retail value) a year to Cornwall and a key point of difference to food crops is that VAT is charged on flowers so it contributes £20 million a year VAT to HM Treasury (important to help pay down the national debt).  VAT is also charged on ornamentals and we do have a significant ornamental sector in Cornwall and the wider SW.
• The picking season is January to April with the bulk of the flowers picked in a 2-month period between the middle of Jan to the middle of March.
• The Cornwall Bulb Growers Association (represents all the flower growers) estimate that they employ a total of 2,700 people during this period.  They are paid a piece rate for their labour and if they work hard average salaries can be well above the Cornish average.  Recent research undertaken by the group has identified that the average hourly rate paid is £12 per hour. 
• Currently they would estimate that the proportion of this workforce that is UK resident is below 5% with many not employing any local labour for field picking operations.
• The tax take from these employees is significant as is the wider benefit to the economy as they spend their disposable incomes locally and many are accommodated in holiday parks which would normally be empty during this time of the year.
• The sector is trying to access migrant labour that have “settled status” but many of these have gone to work in other sectors so are no longer available to the daffodil industry.
• Daffodils are a long-term crop with bulbs in the soil for 3 to 4 years.  Therefore, the ability to make quick changes in the production cycle is almost non-existent.  They could decide not to pick in any given year without any real detriment to the crops, but this would have a significant impact on the profitability of the businesses involved.
• Automation of the picking process very unlikely in the short to medium term.
• Cornwall is the largest grower of narcissi bulbs (and daffodils) in the world and there has been significant growth in recent years (both domestic and export).  The quality of the bulb stock is high which delivers a small but high value export market to the EU and the USA.

Brassica Sector (Cauliflower and cabbage as these are the largest elements of vegetable sector.  However, courgettes, strawberries, blueberries and potatoes also factor in the mix): -

• The Brassica industry is worth around £200 million (retail value) a year to Cornwall.
• The picking season is almost all year round but with the bulk of employment in the November to May period.  Employment contracts tend to be 6 months in duration.
• The two largest Brassica Growers (who represent over 60% of production) estimate that they employ a total of 1,000 people throughout the year, but they also use 50+ local contractors for field work (cultivation, spraying, etc).  On top of this there are a number of smaller growers that employ another 400 to 500 staff between them.
• Field operatives are paid a piece rate for their labour and wage rates range from £8.72/hr to £20/hr+ depending on speed and skill levels.  Both the larger businesses also have significant pack house operations to grade, pack and distribute the crop and wage rates in this part of the business can range from £23k to £40k for junior/middle management.   
• Currently they would estimate that the proportion of the field operatives that are UK resident is below 5% with many not employing any local labour for field picking operations. In the packhouse the proportion of local workers is higher although many of the senior roles are now filled by migrant workers with settled status who have worked their way up the ranks.
• The tax take from these employees is significant as is the wider benefit to the economy as they spend their disposable incomes locally and many are accommodated either on site or in local rented housing.
• As Brassicas are a food crop the sector can access labour from the Seasonal Agricultural Workers scheme (SAWS) which is currently in pilot phase. 
• The decision to plant Brassicas has a significant lead in time as if you want to harvest the crop in December 2021 you would have to have ordered the seed in January 2021, contracted a plant raiser to plant the seed and grow them to a seedling by June 2021 and transplant them in the field in July 2021.  In short, it’s a 365-day operation.
• The sector is trying to access migrant labour that have “settled status” but many of these have gone to work in other sectors so are no longer available to the sector.
• Automation of the picking process is very unlikely in the short to medium term although through the Cornwall Agritech project the sector is working with the University of Plymouth to develop robotic harvesting machines.  Unfortunately, the commercial roll out of this is at least 5 to 10 years away. Automation of the planting process is in place but is expensive and is only being used by the largest growers.
• Cornwall is one of the largest Brassica growing areas in the UK and the area grown in Cornwall has increased by over 80% in the last 10 years.