EXECUTIVE SUMMARY
70%
$25,538
On average, dairy processors spend $25,538 on training annually
The most prominent HR challenge identified in the sector is applicants with too high compensation expectations, viewed as at least somewhat of a challenge by 53% of respondents.
Processors reported recruitment challenges have increased over the past year, while the majority (58%) reported these challenges have remained unchanged
More than a quarter (26%) of dairy processors reported experiencing immediate or persistent challenges recruiting and retaining workers, while an additional 53% of processors reported occasional/ seasonal or ongoing challenges.
Most processors reported making concerted efforts to recruit youth under 30 and women, while fewer processors reported making similar efforts for indigenous, new Canadians, people with disabilities and workers over 50.
16% of processors reported utilizing the Temporary Foreign Worker Program and 11% reported using the Provincial Nominee Programs
The average starting hourly wage for entry-level frontline workers in the dairy sector is $16.10
The majority of processors have reported a decline in customer orders and cash flow and have responded by laying off employees and issuing work from home policies
METHODOLOGY AND RESPONSES
89 Dairy processors responded to this survey and participated either online or by telephone between February and May 2020. The extended time in field was due to COVID – 19 pandemic. It wasn’t possible to ask as many questions in the phone version of the survey as opposed to the online version. As such the number of respondents is indicated by N for every chart and ranges from 29 to 89 depending on the question.
Who we surveyed:
N= 89 Dairy processing employers surveyed
| Region | Survey Responses |
| BC | 16 |
| AB | 6 |
| SK/MB | 4 |
| ON | 34 |
| QC | 26 |
| Atlantic Canada | 3 |
| Not Specified | 1 |
| TOTAL | 89 |
The majority of the questions in this report were asked to food and beverage processors across the country, there were 740 responses in total to the survey. The findings of the overall survey are available on the fpsc website (https://fpsc-ctac.com/reports/)in the report titled: 2020 Labour Market Information Survey Report – Canadian Food & Beverage Manufacturing Industry Report.
DAIRY PROCESSORS SURVEY
Overview
- Industry Profile
- Workforce Profile
- Workforce Availability and Recruitment
- Wages and Benefits
- Training and Skills Development
- Impact of Covid-19
OTHER FOOD PROCESSING INDUSTRY PROFILE
In a Snapshot
- 66% of facilities process cheese, 25% process fluid milk products and yogurt and 24% process butter
- The vast majority of facilities (85%) produce products internally, 12% of facilities produce products both internally and externally
DAIRY PROCESSING INDUSTRY PROFILE
Employment Size
- The “average” processor in Canada has 76 paid positions, including both filled and vacant positions
- 72% of processors reported fewer than 50 paid positions at their facility
- 9% of processors reported 200 or more paid positions are their facility
* Includes both filled and vacant positions
Size of Processing Facilities, Paid Positions*
- The “average” dairy processor has 76 paid positions at their facility
- On average, nearly half (45%) of these paid positions are filled by women
- A significantly lower portion are filled by workers with disabilities (2%) or Indigenous Peoples (1%)
Employment by Occupation
Average number of people employed
- On average, entry level labourers account for the highest number of positions, vacancies and new hires
- Most processors employ fewer than 10 workers across occupation groups
Highest level of Education Required
- 46% of Skilled/semiskilled process control & machine operators (46%) are only required to hold a high school diploma
- Four-in-ten (41%) say at least a university degree is required for management, finance, sales & administration positions
Only a high school diploma is required for most entry level dairy positions
| High School Diploma | College Diploma / Trade School | University Undergraduate Degree | University Postgraduate Degree | Certificate of Qualification – Skilled Trades / HACCP | None | Not Applicable | Don’t Know | |
|---|---|---|---|---|---|---|---|---|
| Entry level labourers (n=80) | 69% | 4% | – | 1% | 1% | 18% | 6% | 1% |
| Skilled/semi-skilled Process Control & Machine Operators (n=76) | 46% | 37% | 5% | 1% | – | 5% | 4% | 1% |
| Management, Finance, Sales & Administration | 8% | 28% | 41% | 13% | – | 3% | 5% | 3% |
| Quality Control & Assurance (n=75) | 19% | 40% | 20% | 13% | – | 3% | 5% | 3% |
| Any Other Occupation (n=38) | 39% | 16% | 11% | – | – | 13% | 11% | 11% |
Business Outlook
- Dairy processors are optimistic about the outlook of their business, as most (68%) anticipate an increase in revenue over the next year
- Only 5% anticipate revenue will decrease, while nearly a fifth (19%) anticipate revenue will remain unchanged
Business Challenges
- The availability of labour is the most significant challenge within the industry, as approximately two-thirds of dairy processors identified this as at least somewhat of a challenge
- Consumer trends (39%) and implementing new technologies (38%) were also viewed as challenges by a large share of processors
WORKFORCE AVAILABILITY AND RECRUITMENT
Recruitment Challenges
- A further 25% reported experiencing occasional or seasonal challenges
- All together, 88% report some form of challenges recruiting or retaining qualified workers.
The majority (63%) of Canada’s dairy processors reported not being able to fill positions or chronic recruitment challenges.
Workforce Availability
36%
Experiencing immediate and persistent challenges throughout the year recruiting and retaining qualified workers and cannot fill vacant positions
27%
Experiencing ongoing challenges recruiting or retaining qualified workers to successfully fill positions
25%
Experiencing occasional or seasonal challenges recruiting orretaining qualified workers. Cannot fill vacancies during peak periods
12%
Experiencing no significant challenges in recruiting or retaining qualified workers
Question: How would you describe the general availability of workers you need?
Recruitment Challenges
- 58% reported these challenges have remained constant
- Only 5% reported recruitment challenges decreased over the past year
35% of Dairy processors reported an increase in recruitment challenges over the past year, with 18% indicating a significant increase.
Dairy Roles Most Difficult To Recruit For
- A clear majority (66%) of dairy manufacturers think production-related positions are the most difficult to recruit for
- One-third (33%) find kitchen positions to be the most difficult to recruit for, while slightly fewer (22%) claim that administrative positions are most difficult
- The most difficult roles to recruit for include cheese makers (25%) and skilled process control & machine operators (26%)
Human Resource
- A lack of qualified applicants was viewed as somewhat of a challenge by 71% of dairy processors, the highest proportion across food & beverage sub-sectors
- Applicants with compensation expectations too high (57%) and lack of applicants with proper training (56%) were also viewed as pressing issues
Immigration Programs
16% of Dairy processors reported utilizing the TFWP, while 11% reported utilizing the PNP program.
Underrepresented Groups
- The majority of dairy processors reported making concerted efforts to recruit Youth under 30 Women 58% 53% youth under 30 (58%) and women (53%)
- Recruitment efforts lagged behind for Indigenous Peoples (24%) and people with disabilities (22%)
WORKFORCE WAGES AND BENEFITS
In a Snapshot
- Average hourly starting wages for frontline workers ranged from a low of $13/ hr to a high of $28/hr across processors
- Only 6% of processors pay front line workers $20/hr or more
- The majority (55%) of processors reported average hourly starting wages to be between $15-$17 per hour
The majority (62%) of dairy processors reported offering benefits at their plant or organization
- Nearly all processors (97%) provide employees with extended health or drug plans, paid days and sick leave were also frequently reported by 76% of processors
- Nearly half of processors reported offering RRSP matching (45%) and pension plan (45%), while about one-third (34%) reported offering tuition reimbursement
- Less traditional incentives such as workplace perks, free products and allowances for safety shoes/boots were less frequently offered
Benefits Offered
97%
Extended health or drug plan
76%
Paid days or sick / family leave
45%
RRSP matching
45%
Pension plan
34%
Tuition reimbursement
7%
Bonus
3%
Other
3%
Workplace parks
3%
Free products / discounts
3%
Safety shoes / boot allowance
TRAINING AND SKILLS DEVELOPMENT
In a Snapshot
- On average, dairy processors allocate $25,538 in training per annum.
- On average, this works out to approximately $334 for each paid position
- On-the-job training and in-house training are the most common training tools used in the sector
Automation in the Dairy Sector
- 38% of dairy processors reported moderate integration of automated production processes
- 8% of processors reported no integration, significantly lower than the total sample
Perceived Threat
- The majority of dairy processors surveyed (92%) think COVID-19 poses at least some threat to their business, the majority which (50%) feel highly threatened by it
- Dairy processors reported feeling higher threat levels than most other food and beverage processing subsectors
IMPACT OF COVID-19
Production Volumes
- The majority of dairy processors surveyed (59%) reported reduction in production due to COVID-19
- A fifth (21%) reported an increase in production volume due to COVID-19
- Dairy processors have been impacted in many ways by COVID-19
- Decline in customer orders has been the most notable impact, as reported by 66% of processors
- Decline in cash flow was also reported by the majority of processors (52%)
- Dairy processors also took different approaches to dealing with COVID’s impact
- Approximately half of processors reported reducing workers hours (52%), allowing employees to work from home (48%) and conducting layoffs (45%)
- Just 7% of processors reported and increase in outsourcing
Impact of COVID-19
Action Taken
