Labour biggest cost for farmers
Labour productivity is dependent on various practices like training, labour relations, communication, remuneration, health and safety, as well as the use of technology.
Labour is the biggest cost factor on commercial farms, as it constitutes 22% of total expenses.
This is according to an Agricultural Employers Association (AEA) user manual on labour productivity on Namibian farms, which provides hints and guidelines for farmers.
“As costs are the main factor to influence the profitability on the farm, labour productivity on farms impacts the success of farming activities and the profitability on the farm,” the manual said.
It says that according to the Namibia Agriculture Union (NAU) Production Cost Index, labour is the largest cost factor on farms and on average constitutes 22% of the total farming expenses.
The manual starts with a definition of labour productivity and says that the term productivity is often used incorrectly to merely mean product output.
“Rather, productivity measures the efficiency of production factors, or in other words, productivity is the ability of a system to produce more economically and effectively.”
The manual pointed out that labour productivity is dependent on various practices like training, labour relations, communication, remuneration, health and safety, as well as the use of technology.
The manual says that employees who have the required skills are better equipped to be productive than without skills.
In the first place, employers should be on the lookout during recruitment for employees with the required skills, it said.
“As in any other industry, the use of technology on farms is also directly related to increased labour productivity. Using technology empowers employees to increase their output without working longer hours.”
According to the manual, healthy labour relations are a prerequisite for productivity.
“A worker who enjoys his job and is content with his work conditions will, on the whole, be more productive than one who is discontent.”
The manual also contains a section on how to measure productivity, which changes from simple to more sophisticated methods. A sophisticated measure is, for example, where one can measure productivity in kilogram live weight produced per annum, and divides it by the total working hours of workers per year. It said southern Africa is very unproductive in this regard with an average of two to five kilograms live weight per hour in comparison with Australia where labour productivity is 80 kilograms of live weight per hour.
ELLANIE SMIT
This is according to an Agricultural Employers Association (AEA) user manual on labour productivity on Namibian farms, which provides hints and guidelines for farmers.
“As costs are the main factor to influence the profitability on the farm, labour productivity on farms impacts the success of farming activities and the profitability on the farm,” the manual said.
It says that according to the Namibia Agriculture Union (NAU) Production Cost Index, labour is the largest cost factor on farms and on average constitutes 22% of the total farming expenses.
The manual starts with a definition of labour productivity and says that the term productivity is often used incorrectly to merely mean product output.
“Rather, productivity measures the efficiency of production factors, or in other words, productivity is the ability of a system to produce more economically and effectively.”
The manual pointed out that labour productivity is dependent on various practices like training, labour relations, communication, remuneration, health and safety, as well as the use of technology.
The manual says that employees who have the required skills are better equipped to be productive than without skills.
In the first place, employers should be on the lookout during recruitment for employees with the required skills, it said.
“As in any other industry, the use of technology on farms is also directly related to increased labour productivity. Using technology empowers employees to increase their output without working longer hours.”
According to the manual, healthy labour relations are a prerequisite for productivity.
“A worker who enjoys his job and is content with his work conditions will, on the whole, be more productive than one who is discontent.”
The manual also contains a section on how to measure productivity, which changes from simple to more sophisticated methods. A sophisticated measure is, for example, where one can measure productivity in kilogram live weight produced per annum, and divides it by the total working hours of workers per year. It said southern Africa is very unproductive in this regard with an average of two to five kilograms live weight per hour in comparison with Australia where labour productivity is 80 kilograms of live weight per hour.
ELLANIE SMIT
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