REVIEW OF VICTORIAN AGRICULTURE COLLEGES

Transcription

1 REPORT TO DEPARTMENT OF EDUCATION AND EARLY CHILDHOOD DEVELOPMENT 28 AUGUST 2014 REVIEW OF VICTORIAN AGRICULTURE COLLEGES

2 ACIL ALLEN CONSULTING PTY LTD ABN LEVEL FIFTEEN 127 CREEK STREET BRISBANE QLD 4000 AUSTRALIA T F LEVEL TWO 33 AINSLIE PLACE CANBERRA ACT 2600 AUSTRALIA T F LEVEL NINE 60 COLLINS STREET MELBOURNE VIC 3000 AUSTRALIA T F LEVEL ONE 50 PITT STREET SYDNEY NSW 2000 AUSTRALIA T F SUITE C2 CENTA BUILDING 118 RAILWAY STREET WEST PERTH WA 6005 AUSTRALIA T F ACILALLEN.COM.AU RELIANCE AND DISCLAIMER THE PROFESSIONAL ANALYSIS AND ADVICE IN THIS REPORT HAS BEEN PREPARED BY ACIL ALLEN CONSULTING FOR THE EXCLUSIVE USE OF THE PARTY OR PARTIES TO WHOM IT IS ADDRESSED (THE ADDRESSEE) AND FOR THE PURPOSES SPECIFIED IN IT. THIS REPORT IS SUPPLIED IN GOOD FAITH AND REFLECTS THE KNOWLEDGE, EXPERTISE AND EXPERIENCE OF THE CONSULTANTS INVOLVED. THE REPORT MUST NOT BE PUBLISHED, QUOTED OR DISSEMINATED TO ANY OTHER PARTY WITHOUT ACIL ALLEN CONSULTING S PRIOR WRITTEN CONSENT. ACIL ALLEN CONSULTING ACCEPTS NO RESPONSIBILITY WHATSOEVER FOR ANY LOSS OCCASIONED BY ANY PERSON ACTING OR REFRAINING FROM ACTION AS A RESULT OF RELIANCE ON THE REPORT, OTHER THAN THE ADDRESSEE. IN CONDUCTING THE ANALYSIS IN THIS REPORT ACIL ALLEN CONSULTING HAS ENDEAVOURED TO USE WHAT IT CONSIDERS IS THE BEST INFORMATION AVAILABLE AT THE DATE OF PUBLICATION, INCLUDING INFORMATION SUPPLIED BY THE ADDRESSEE. UNLESS STATED OTHERWISE, ACIL ALLEN CONSULTING DOES NOT WARRANT THE ACCURACY OF ANY FORECAST OR PROJECTION IN THE REPORT. ALTHOUGH ACIL ALLEN CONSULTING EXERCISES REASONABLE CARE WHEN MAKING FORECASTS OR PROJECTIONS, FACTORS IN THE PROCESS, SUCH AS FUTURE MARKET BEHAVIOUR, ARE INHERENTLY UNCERTAIN AND CANNOT BE FORECAST OR PROJECTED RELIABLY. ACIL Allen Consulting 2013

3 C o n t e n t s Executive Summary 5 Background 5 Findings 5 1 Introduction and project overview This project Project context Project methodology The structure of the analysis and this report 13 2 Overview of the Victorian agriculture sector and current and future skills needs Agriculture in Victoria The Agriculture, Forestry and Fishing industry Future demand for agricultural training 23 3 Training delivery by Victorian agricultural colleges Victorian agricultural colleges VET enrolments and market share of Victorian agricultural colleges Higher education enrolments and market share of Victorian agricultural colleges 42 4 Utilisation at Victoria s agricultural colleges Past, present and future models of agricultural training delivery Assessment of utilisation levels at Victoria s agricultural colleges Current approaches to maximising utilisation Range of potential alternate uses Other agricultural college models Potential barriers to the implementation of alternate uses 58 5 Recommendations for the future The role of Victoria s agricultural colleges in the contemporary education and training market The rationale for government intervention 63 ii

4 5.3 The role for government and industry 65 List of figures Figure 1 Employment in Agriculture, Forestry and Fishing in Victoria 19 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Age profile of the Agriculture, Forestry and Fishing workforce in Australia 20 Occupational characteristics of the Agriculture, Forestry and Fishing workforce in Victoria 20 Occupation share in the Agriculture, Forestry and Fishing workforce in Victoria 21 Qualification profile of the Agriculture, Forestry and Fishing workforce in Victoria (2012) 22 Regional share of industry employment and VET enrolments (2011) 23 Growth in agriculture-related VCE/VCAL unit completions, compared with population, (indexed to 2005 = 100) 24 Figure 8 Growth in agriculture-related VCE enrolments, (indexed to 1995 = 100) 25 Figure 9 Figure 10 Growth in Victorian course enrolments in agricultural production qualifications (2004 to 2013, indexed to 2008=100) 34 Growth in agricultural production course enrolments by content area and qualification level (2004 to 2013, indexed to 2008 = 100) 35 Figure 11 Distribution of Agricultural VET enrolments by providers (2012) 36 Figure 12 Figure 13 Figure 14 Figure 15 Figure 16 Figure 17 Market share of the agricultural colleges in their main region of delivery 37 Delivery by the agricultural colleges in broad and narrowly defined qualification groups, ) 41 Distance travelled by students of the four agricultural colleges delivering VET qualifications 42 Growth in Victorian enrolments in agriculture-related higher education qualifications by category (EFTSL, , indexed to 2008 = 100) 44 Market share of Victorian higher education providers in agriculture-related qualifications, 2008 and Growth in agriculture-related EFTSLs ( , indexed to 2008 = 100) 45 Figure 18 Range of potential alternate uses 53 Figure D1 Figure D2 Figure E1 Figure E2 Delivery by the agricultural colleges in broad and narrowly defined qualification groups, ) D-3 Distance travelled by students of the four agricultural colleges delivering VET qualifications D-4 Market share of Victorian higher education providers in agriculture-related qualifications, 2008 and 2013 E-0 Growth in agriculture-related EFTSLs ( , indexed to 2008 = 100) E-1 List of tables Table 1 Research questions for the review 12 iii

5 Table 2 Victorian agricultural colleges 26 Table 3 Top ten enrolments in agricultural qualifications (2013) 32 Table 4 Table 5 Table 6 Separation of 36 agricultural production qualifications into content areas 33 Market share of agricultural colleges in the qualifications they deliver (2012) 37 Market shares of the agricultural colleges and other providers of agricultural training 39 Table 7 Victorian enrolments in agriculture-related qualifications (2013) 43 Table 8 Table 9 Overall market shares of Dookie College, Burley campus and other Victorian providers of Agriculture-related higher education 47 Enrolments and land area of the agricultural colleges and two comparator examples 51 Table 10 Examples of agricultural high schools around Australia 55 Table B1 VET agricultural production qualifications in scope of the review B-1 Table C1 Stakeholders consulted with as part of the review C-2 Table F1 Table F2 Overall market shares of Dookie College, Burley campus and other Victorian providers of Agriculture-related higher education F-2 Overall state-wide market share of Longerenong, McMillan Warragul, Glenormiston and the six largest other providers of agricultural training (2012) F-3 iv

6 Executive Summary Background This review was commissioned in response to the recommendation of the Parliamentary Inquiry into Agricultural Education and Training to look at the feasibility of how Victoria s agricultural colleges could be better utilised to deliver agricultural education to school, VET and higher education students. The Department commissioned ACIL Allen Consulting to undertake a 10 week study into six colleges/campuses: Dookie and Burnley which are the responsibility of the University of Melbourne Longerenong, McMillan, and Gilbert Chandler which are leased to WorkCo, Community College Gippsland, and GOTAFE respectively Glenormiston, which was recently vacated by South West Institute of TAFE. Findings An important sector for the Victorian economy Skill requirements are increasing, and there is difficulty attracting sufficient skilled workers Overall labour and training demand is reducing, but industry still reports skill shortages The data analysis and consultations conducted reaffirm that agriculture plays an important role in the Victorian economy both in terms of economic value and employment, and that the skills within the sector are critical to its competitiveness. It contributed $11.3 billion to Victorian Gross State Product in , and plays a particularly significant role in the regional economies of Victoria, employing on average over 11 per cent of the State s regional workforce. Its importance to both the Victorian and national economies is further evidenced in predictions of its growth. ABARE predicts strong growth in Agri-food exports could experience real growth as high as 2.1 per cent to Given the importance of the agricultural workforce, skills shortages at all levels are an ongoing concern, from lower level, more practical qualifications to higher level Diplomas, Advanced Diplomas and Bachelor degrees. Specific shortages in technical areas such as Agricultural Scientists and Agronomists have resulted in some levels of international recruitment in recent years. Agriculture training in Victoria is facing challenges similar to those interstate and internationally. Production is seeing increasing capital and technological intensity, leading to reductions in the base demand for labour and the need for changed models of training delivery. There is a clear need to improve participation generally, promote a positive industry image, improve awareness, and improve participation in schools to counteract the declining interest in careers in the sector. Even following some strong growth in VET student numbers following the introduction of the VTG, enrolments in agriculture-related qualifications are no higher than they were 10 years ago. Most areas of agriculture-related higher education are also experiencing a long-term decline in enrolments. While precise utilisation rates are not available for the six historical agricultural colleges, measures of enrolments show that for the qualifications considered relevant to agricultural education and training these colleges account for less than 10 per cent of VET enrolments, and less than 9 per cent of higher education enrolments. 5

7 Agriculture education and training is now being met by a wider range of providers The key issue is employer and student demand, not education and training supply No clear case for a supply-driven solution Under-utilised assets remain an issue to be addressed Industry, employer and student preferences indicate that demand for agricultural education and training is now being met by a wide range of TAFE institutes, universities and private providers, and reflects the general finding that the agricultural colleges are no longer the distinctive and significant providers of education and training for the sector. In particular campuses like Gilbert Chandler and Burnley are highly specific facilities providing little or no training in agricultural production. As such, the future of these agricultural colleges should not presume that they are or need to be distinctive and significant providers of education and training, but rather be based on industry and employer need and commercial viability. The starting point therefore for investigation of the level and extent of issues around attracting sufficient supplies of skilled labour to the agricultural workforce should be the needs of industry and employers, and any barriers to meeting those needs, rather than the utilisation of specific training infrastructure. The review did not find evidence of any significant unmet demand for education and training that was specific to the agriculture colleges. Industry bodies and employers did report some lost opportunities to attract and develop careers in agriculture, and some variability in training quality across the range of course being offered was also raised, but it was beyond the scope of this study to examine or quantify the extent of these issues. As such, there is no clear case for any government intervention for a supply-driven solution. Within the current demand-driven settings, any intervention risks perverse consequential impacts. There is also an important balance to consider between encouraging thrivers and allowing failures in an open system. This must be viewed through the lens of industry policy and an assessment of any market failure(s). Notwithstanding this, the immediate issue of some under-utilised assets remains for the colleges (and government). Longerenong College appears to be relatively well utilised for agricultural VET, as well as accredited and non-accredited training in other areas. It has secured a strong industry partnership with Bayer CropScience, and has a long-term strategic plan in place. McMillan (Warragul) has become provider of a wide range of VET delivery by Community College Gippsland, with some of its former dairy activities now being provided by the GOTAFE / NCDEA partnership facilities at Warragul. While its focus on agriculture has declined, there does appear to be potential to reaffirm and expand into some areas of agriculture delivery, particularly horticulture with recent Trade Training Centre investments in the area. Gilbert Chandler is operated by GOTAFE and co-located with the NCDEA and Dairy Innovation Australia Limited, and while utilisation appears to be in decline, there may be opportunities to strengthen links between research, education and the dairy industry. Glenormiston College has been vacated by South West Institute of TAFE and has not attracted any interest from the other TAFE institutes. It is the subject of a separate review which is canvassing options for ongoing use. Given its remote location and the high concentration of tertiary infrastructure in the Warrnambool area, that review should carefully consider whether it has any future prospect as an education and training facility. Dookie and Burnley are primarily the responsibilities of the University of Melbourne and would require detailed departmental level discussions with the University. Dookie appears to be underutilised, while the review has not been able to consult with Burnley. 6

8 The role for government is to monitor the market and remove barriers Strong industry and employer involvement is a necessary condition for training growth The role for government is therefore to continue to monitor through established processes the agricultural education training sector for emerging market failures, and investigate the appropriate action to address market failures if and when they emerge. As part of this future intent and usage plans should be developed, if not already, by the operators of Government-owned facilities at Longerenong and McMillan Warragul. Given the long term significance of Dookie, the Government could initiate a senior-level discussion with the University of Melbourne regarding its future. Where required, government should assist in removing or addressing any barriers to increasing the utilisation of the agricultural college assets, or equally to the orderly closure or disposal of unwanted assets. A significant finding is that where there has been growth in education and training delivery, this has been associated with strong industry and employer involvement. The broader issues therefore of whether current agriculture education and training overall is fit-forpurpose, and whether the current agriculture colleges can be part of future growth of education and training in the sector need strong engagement from industry and employers. An important first step is the establishment of dialogue between relevant industry bodies, employers, regional communities and tertiary education and training providers, informed by government industry and regional development objectives. The focus should be on increasing the attractiveness of careers in agriculture, and should include identifying appropriate training pathways, successful models of training and how they can be applied more broadly, and the most appropriate roles of the various stakeholders. 7

9 Recommendation 1 That the Government note that whilst the Victorian agricultural colleges once served as a critical supplier of skills and knowledge to the agriculture workforce, they are no longer distinctive and significant providers of agricultural education and training. That, as such, the starting point for any analysis of demand and supply of agricultural education and training should be the broader agricultural education and training sector, rather than select individual providers. Some colleges like Gilbert Chandler and Burnley can be excluded on the grounds that there is little to no training in agricultural production being delivered. While they may not have been agricultural colleges historically, other VET and higher education providers with significant agricultural education and training delivery should be included in future analysis of education and training provision. Recommendation 2 That Government note that the key requirement identified is to increase the attractiveness of careers in agriculture, and that this cannot be addressed through a supply side training response. As such there does not appear to be a strong case for government intervention to address the low levels of utilisation or to re-establish education and training delivery at any of the Victorian agricultural campuses at this time. Further, that Government should not intervene to address low levels of asset utilisation unless there is a clear and compelling industry policy rationale, so as to ensure that all providers compete on a level playing field, and that the independence and autonomy of the current college operators is maintained. That Government should also continue to monitor through established processes the agricultural education training sector for emerging market failures, and investigate the appropriate action to address market failures if and when they emerge. This includes requiring that future intent and usage plans be developed (or communicated, if already developed) by the operators of Government-owned facilities at Longerenong and McMillan. Recommendation 3 That a key role of Government is to remove or address any barriers, as identified, to increasing utilisation of the agricultural college assets, or equally to the orderly closure or disposal of these assets. That, in the event of the closure of an agricultural college campus, the Government take a wellstructured and inclusive approach to identifying all the attributes of the site and the full range of commercially viable alternative uses, including possible disposal of the asset. This should include consideration of proximate TAFE campuses, university campuses and TTCs. That Government take the opportunity to develop this structured approach through the current process with the Glenormiston campus, while also drawing on the experience with other TAFE or university campuses that have been vacated. Recommendation 4 That the Government release this review and communicate its findings with the agricultural colleges. That the Government facilitate a structured dialogue led by DEECD between DEPI, Regional Development Victoria, industry associations, agricultural colleges and other significant providers of agricultural education and training to share best practice and learnings on what models of delivery are required by industry, employers and students, what models are currently working, and what models might work best in the future. The focus of this dialogue should be on increasing the attractiveness of careers in agriculture, and should include identifying appropriate training pathways, successful models of training and how they can be applied more broadly, and the most appropriate roles of the various stakeholders. 8

10 1 Introduction and project overview 1.1 This project The Victorian Department of Education and Early Childhood Development (DEECD) has engaged ACIL Allen Consulting (ACIL Allen) to undertake a Review of Victorian Agricultural Colleges. The focus of this review is on the ability and future capacity of the six agricultural colleges once part of the Victorian College of Agriculture and Horticulture to efficiently meet the skills needs of the agriculture sector. It will consider current provision of agriculture education and training in Victoria (both VET and higher education), industry and employer preferences for education and training delivery and the contribution of the colleges to meeting sectoral skills needs. The review assessed the extent of delivery by and utilisation at Victoria's agricultural colleges and their importance in the context of the broader agricultural education and training market and the skills needs of the agricultural industry and employers. It makes recommendations for government in regard to the agricultural education and training sector generally, and the future of the agricultural colleges specifically. 1.2 Project context The national challenge of agricultural education and training The education and training needs of the agriculture sector are complex. There is significant variation in skill requirements across industries, as well as in the recognition of the value of VET to industry productivity and profitability. Changing patterns of demand according to regional economies and patterns of industry, and varying qualification levels required across both VET and higher education add to this complexity. Over the last two years, a number of inquiries have been conducted into agricultural education and training at both the state and Commonwealth. These inquiries have investigated the supply of, and demand for, skills in the agriculture sector amid concern about the decline in the agriculture workforce and in enrolments in post-secondary agriculture and agriculture-related courses; clear and consistent themes have emerged. Appendix A briefly outlines the focus of each inquiry, its findings and recommendations The Victorian Parliamentary Inquiry into Agricultural Education and Training The report on the Education and Training Committee s Parliamentary Inquiry into Agricultural Education and Training was tabled in Parliament on 14 November The purpose of the inquiry was to evaluate the provision of agriculture-related courses, the effectiveness of those courses and whether the workforce training needs of the agriculture sector were being met. The inquiry found that there has been declining enrolments at the senior secondary and higher education level but that enrolments in agricultural VET qualifications had been increasing. The Committee found that the focus of VET courses on a flexible and consultative training system supported the needs of the sector, though more 9

11 government flexibility was required to fund and deliver Skill Sets, the sector s preferred form of training (Parliament of Victoria, 2012). The Inquiry also emphasised the need for industry leadership in encouraging young people to take up careers in agriculture, and the benefit of engaging more closely with training providers to lift the quality and relevance of the agricultural subjects and courses that are already being delivered by schools, training providers and higher education institutions. The recommendations of the inquiry focused on attracting people to agricultural careers, the pipeline of education and training in agriculture from school through to tertiary education, and strategies to support the continued development of Victorian agricultural education and training. It contained 45 recommendations to government and industry. The whole of government response to the inquiry was tabled on 19 September In relation to Victoria s agricultural colleges, the key findings of the inquiry were: Victoria s agricultural colleges are an important asset and have enormous potential to contribute to the future of agricultural education in the state. Some facilities within Victoria s agricultural colleges are not being utilised to their full potential. Government investment and support, as well as new commercial opportunities, are required to revitalise these facilities. Education and Training Committee (2012), p. 149 Building on these findings, the inquiry recommended that the Victorian Government commit to delivering agricultural training at the agricultural colleges and maintaining the facilities at the agricultural colleges (Recommendation 33). In addition, Recommendation 34 of the inquiry requested that a feasibility study be undertaken to examine how agricultural colleges could be better utilised to deliver agricultural education into the future. Recommendation 34: Exploring new opportunities for Victoria s agricultural colleges That the Victorian Government work with the operators of the agricultural colleges and the industry associations within the agriculture sector to: conduct a feasibility study into how the colleges could be better utilised to deliver agricultural education to school, VET and higher education students revitalise the college facilities through attracting new investment. Education and Training Committee (2012) In responding to the inquiry, the Victorian Government reiterated its commitment to creating opportunities to access agricultural education and training in Victoria and expressed its commitment to maintaining agriculture colleges. In response to the specific recommendation 34, the Government supported the recommendation, and has committed to investigating how these important assets can be used most effectively into the future (Victorian Government 2013). This project specifically addresses the recommendation to conduct a feasibility study into how Victoria s agricultural colleges could be better utilised to deliver agricultural education to school, VET and higher education students. The project s terms of reference are shown in Box 1. 10

12 Box 1 Terms of reference 1. Gather, analyse and summarise best practice management of agricultural education in Victoria to provide an evidence base to inform whether or not Victoria s existing agriculture colleges are the most effective method of delivering agricultural education at the vocational and higher education levels. Particular focus should be placed on the Longerenong and Warragul facilities given Government s existing lease arrangements with training providers. 2. Consider: The relative contribution agriculture colleges make to the skilled agriculture workforce versus contributions made by other education providers How the different models of agricultural higher and vocational education are working (and alternative models where the existing model is not working) The nature and outcomes of any industry investment in and relationships with agriculture colleges Opportunities for existing agriculture colleges to partner with cooperative research centres / vocational or higher education providers / industry specialist hubs to improve delivery in the region and strengthen their business models Opportunities for an existing agriculture college or other training provider to partner with other educational / industry stakeholders to support a dedicated agricultural high school for Year 11 and 12 students The extent to which agricultural campus capacity can be expected to be utilised in the future, given demographic shifts in regional areas and the age at which farmers pursue agricultural education and training Whether other mechanisms for Government investment in agricultural education exist which would more effectively meet the needs of students, trainees, industry and employers. 3. Offer considerations to HESG for the most efficient and effective method of provision of agricultural education in the future, including considerations relating to specific colleges or considerations relating to the utilisation of colleges in general. Source: DEECD project specifications 1.3 Project methodology Key research questions The review has been driven by clear research questions, specifically tailored to address the terms of reference of the review and guided by a framework of analysis focused on the factors influencing sustainable provision of agricultural education and training (shown in Figure A1). The research questions that guided the review are provided in Table 1. 11

13 Table 1 Key factors Industry support Research questions for the review Research questions A C I L A L L E N C O N S U L T I N G 1. Relevance What skills and qualifications do employers in Victoria s agricultural sector require? Are the skills and qualifications being provided relevant to industry? How are the skills requirements of the industry likely to change in the coming years? Are the skills and qualifications being delivered by Victoria s agriculture colleges aligned with current and future industry needs? 2. Quality How does the quality of education and training delivered meet the needs of industry? What are the opportunities for improved education and training delivery to better meet the needs of industry? Student demand 3. Future income What are the future income and employment prospects in the sector? How are current and future income levels and employment prospects likely to influence student demand? 4. Lifestyle What are the lifestyle factors influencing demand for agricultural employment? How are these lifestyle factors impacting on the demographic profile of agricultural students? Revenue 5. Government subsidy What are the Government subsidy levels for agricultural qualifications? How would variations to the subsidy levels impact on the revenue of Victoria s agriculture colleges? 6. Tuition fees What are the current tuition fees for agricultural qualifications? What are the opportunities for increased fee for service activities? Cost of delivery 7. Delivery model What are the current models of delivery of agricultural qualifications? What alternative models of education and training delivery appear prospective in the agricultural sector? Are there opportunities for improving the effectiveness and efficiency of delivery through alternative delivery models? 8. Units What are the units delivered by agricultural education and training providers? What are the teaching and infrastructure requirements associated with the delivery of these units? Available infrastructure 9. Asset utilisation What is the level of campus utilisation of Victoria s agriculture colleges? How does the utilisation of assets compare with that of other types of providers? 10. Asset condition Potential partnerships 11. Schools and communities 12. Providers and R&D organisations Source: ACIL Allen Consulting 2013 What is the general condition of the campuses of Victoria s agriculture colleges? At a high level, are the available assets in a condition appropriate for alternative uses? What options are there for each of the agriculture colleges for partnering with schools, or establishing networks of feeder schools? What options are there for each of the agriculture colleges for partnering with community training organisations in the region? What other providers of agricultural education and training exist in the catchments and industry areas of the five agriculture colleges? What options are there for each of the agriculture colleges for partnering with other providers? What options are there for each of the agriculture colleges for partnering with research organisations? Consultation process The process for undertaking consultations with key stakeholders involved the Department of Education and Early Childhood Development writing to agricultural providers of education and training and industry and employer stakeholders. This provided information regarding the genesis and purpose of the review with an invitation to participate. The stakeholders consulted during the review are listed in Appendix C. Visits were made to Longerenong College, McMillan Warragul, Dookie College and Gilbert Chandler. The review did not visit Glenormiston College due to the concurrent review taking place specifically of that College. No response was received from Burnley. 12

14 1.4 The structure of the analysis and this report As implied in the terms of reference (Box 1), the brief for this review takes the six agricultural campuses in Victoria as the starting point for the analysis. In line with the recommendations of the Parliamentary Inquiry, the terms of reference seek further investigation of the generally low levels of utilisation of the agricultural college assets and whether this warrant government intervention. They terms of reference suggest that the utilisation of the six agricultural could be improved, whilst at the same time leading to better education and training outcomes for the agricultural industry and employers. While all of the issues have been canvassed and analysed through the lens of the future of six agricultural colleges, this report recognises that the six agricultural colleges exist within a much broader agricultural education and training landscape. As such, the future of the Victorian agricultural colleges needs to be considered against this broader backdrop of other providers, assets and delivery models that are all looking to meet the current and future skills needs of industry and employers. While the six agricultural colleges remain the focus of this review, their future is considered in this broader context. The terms of reference seek analysis of the market for agricultural education and training, and whether needs of industry and employers are being met by that market. While supply of skilled labour to the agriculture industry is not explicitly included, some commentary is made on that issue. The review therefore analyses the market for agricultural education and training within the context of demand driven provision of subsidised education and training in both the higher education and VET systems, and whether there is evidence of market failure that warrants government intervention. The report is structured as follows: Chapter 2 provides an overview of the Victorian agriculture sector and current and likely future skills needs and training trends that will need to be met by the marketplace of VET and higher education providers in Victoria. Chapter 3 analyses the current provision of agricultural education and training in Victoria, including the role of the six agricultural colleges, competition in the sector and the colleges market shares. Chapter 4 compares the utilisation of assets at other providers of agricultural education and training with that of the Victorian agricultural colleges and provides a summary of the range of alternate approaches that have and could be implemented to improve levels of utilisation. Chapter 5 makes recommendations for the role of government and industry to ensure that any relevant market failures can be explicitly identified and interventions are appropriately justified. 13

15 2 Overview of the Victorian agriculture sector and current and future skills needs 2.1 Agriculture in Victoria The importance of agriculture to the Victorian economy Agriculture plays an important role in the Victorian economy. Victoria s temperate climate, high quality soils and clean water support a variety of world-class agriculture industries including dairy, beef and sheep meat, grains and horticulture. In Victorian Agriculture contributed over $11.3 billion to Victorian gross state product. 1 With more than 12 million hectares of agricultural land, Victorian agricultural industries produce valuable food and fibres for both domestic consumption and export. In addition, the agriculture, forestry and fisheries industry employed over 80,000 people during Significantly, employment in these industries has a multiplier effect, with direct linkages to food processing, transport and various other industries. In addition, the sector is a major employer in regional areas, with food and fibre accounting for 1 in 6 regional jobs. As with many developed economies, the agriculture sector s relative economic contribution declined over the last century as other sectors in the Australian economy grew and global agricultural production increased. Nonetheless agriculture remains an important part of Victoria s economy and society. Over the past decade perception has started to shift from agriculture being in long-term decline being an industry in renaissance in light of growing global demand for food and fibre, particularly high-value products. The associated challenges and opportunities are reasonably well understood and articulated in documents such as the Environmental Scan of the AgriFood Industry, National Farmers Federation Blueprint for Australian Agriculture and the Commonwealth Government s Agriculture Competitiveness White Paper Victorian Government initiatives In March 2014, the Victorian Government released the Food to Asia Action Plan and the Goulburn Valley Industry and Employment Roadmap. The Action Plan focuses on putting more Victorian food and beverages on Asian tables [by supporting] Victoria s food and agriculture sector to be a key driver of economic growth and jobs, especially in regional and rural Victoria. Among other actions such as reducing barriers to trade, launching trade missions to open new premium markets, increasing freight efficiency to Asian markets, reducing regulatory burden and improving the targeting of innovation, the plan aims to build a workforce with 1 Australian Bureau of Statistics 2013, Value of Agricultural Commodities Produced, Australia, , Catalogue Number , Canberra. 2 Australian Bureau of Statistics 2013, Labour Force, Australia, Detailed, Quarterly, Aug 2013, Catalogue Number , Canberra. 14

16 The skills, knowledge and insights to increase premium food exports to Asia by working with Victoria s food and agriculture industries to develop leadership, management and exporting skills and working with the Commonwealth Government to overcome seasonal labour and specialist skills shortages. Together with the new Horticulture Centre of Excellence and $16 million concessional loans package as part of the Goulburn Valley Roadmap, there is a clear and increasing focus in Victoria on education and training and workforce development to meet the challenges of the agriculture industries Emerging and ongoing challenges for the agriculture sector As the Inquiry into Agricultural Education and Training and other recent sectoral analyses have identified (Education and Training Committee 2012, AWPA 2013, AgriFood Skills Australia 2014), the industry faces a number of challenges, including: Gaining market access and the development of international markets, particularly the development of Free Trade Agreements with major trading partners Obtaining the appropriate skills and labour, including attracting young talent and overcoming issues associated with an ageing farm workforce Enhancing innovation and productivity, including competing with low cost international competitors Overcoming transport and logistical bottlenecks and performance both domestically and in relation to in-market distribution chains Attracting investment in a variety of areas including research and development, infrastructure and supply chain investment Minimising costs and impacts of production, including environmental impacts, regulation and compliance costs and input costs. A particular underlying challenge for the sector is the extent to which education and research can be relied upon to help the sector respond to these challenges and capitalise on opportunities. Education and research will be vital in ensuring that the sector can tackle these challenges and that agriculture in Victoria continues to thrive. However, at present, the agricultural workforce is ageing and has lower qualifications levels than the Australian workforce as a whole. There is currently low demand for formal agricultural education and training throughout Australia. This is despite the plethora of career opportunities in the agriculture sector and research suggesting that agricultural education and training is linked to increased productivity, profitability and innovation. Education and Training Committee (2012), p. xix The education and training needs of the agriculture sector The agriculture education and training network in Australia faces major challenges in terms of demand, delivery modes, costs and industry capacity and willingness to invest. The move to market and demand based funding models in both higher education and VET in all jurisdictions, led by Victoria, has sharpened these challenges. There is a heightened imperative to ensure that future skills needs are met in systems that are driven by individual student, industry and employer demand. 15

17 Needs in VET and higher education Recent assessments, such as the AgriFood Skills Australia environment scan and work conducted by ACIL Allen evaluating the impact of regional skills initiatives 3, indicate that the skills and qualifications required by industry and employers are undergoing a significant shift. The Parliamentary Inquiry confirmed that Traditionally the agriculture sector has placed a strong focus on skilling its workforce through on-the-job learning and practical experience. However, the agriculture workforce is increasingly requiring higher skill levels and qualifications in response to the changing nature of agriculture and shifts in the sector s labour requirements. At the VET level, the AgriFood Skills Australia e-scan identified continuing demand for specialised skills and high levels of demand for qualifications in animal welfare, agricultural technicians, conservation and land management. The e-scan differentiated between two types of specialised skills: Those skills that are technically oriented are focused on the job at hand and being able to perform operational tasks. Future oriented skills are focused on adapting to increasing complexity in production, agribusiness and natural resource management. The industry and employer demand for higher education qualifications appears to be stronger in research and development and post-farm gate. This responds to the need for continued research into areas such effective crop and food production, ecological management and sustainable herd management to boost productivity and help farmers manage the effects of the long term decline in terms of trade. With regard to post-farm gate demand, this encompasses agriculture-specific qualifications such as ecology, viticulture, horticulture, as well as more general qualifications such as food distribution, export management and marketing (Allen Consulting Group 2012). Need across different regions Industry activity within regions is a strong driver of demand for education and training. Earlier work by ACIL Allen that investigated agricultural skills and training needs in three regions (Hume, Loddon Mallee and South East Metropolitan) found that there is increasing demand for management and business skills, technological and IT skills, as well as complementary lower level skills that ensure the optimal use of equipment. Unsurprisingly, each region differed among the sectoral skills required from horticulture, livestock production, to viticulture depending on the regional economy. This indicates the need for education and training provision to meet demand for generalisable skills as well as the particular skills of its region. Speed of knowledge transfer There is also a strong need to increase the speed to market of new knowledge, practices and technologies. This has traditionally been achieved through extension services, whereby public funding was available for activities that demonstrated new practices and technologies arising from research. This funding has been in decline over the last decade and private sector advisory services have grown. This shift has had an impact on the type of advice provided, with research indicating issues such as natural resource management and whole farm planning are not usually provided by private sector agronomists (Australian Farm Institute 2013). 3 ACIL Allen Consulting (2014), AgriFood National Regional Initiatives (ANRI): Program evaluation and future of ANRI 16

18 Diversity of education and training needs In responding to the varied education and training needs of the industry, a particular challenge is the diversity of the agricultural workforce from on-farm, to agribusiness, land owners, contractors and the seasonal workforce. This requires training providers to be sensitive to the availability of the workforce for training, the period and intensity of that training so as to minimise disruption to the farm or agribusiness, and well informed as to the range of qualifications or Skills Sets in demand. Structural needs within the agriculture workforce Structural features of the agriculture labour market are also a significant factor in the supply and demand for education and training. Employment levels in on farm agriculture have not been growing, but there is nonetheless a shortage of skilled labour across the agriculture sector, particularly when agribusiness is taken into account. There are a number of factors contributing to skill shortages in agriculture, related to both the supply of and demand for skills. These include labour competition from other industries, poor promotion of the industry to young people, an ageing population, and variation in rural population trends (AgriFood ISC Escan, 2014) Implications for education and training delivery in Victoria This discussion highlights the importance for providers of education and training to understand the broader shifts occurring within the agricultural sector and its workforce while responding to the particular demands within a given region. While there will be a continuing demand for the diverse forms of delivery--such as full and part time, short courses, online it will be necessary to ensure the delivery profile is tailored to, and recognises the importance of, the workforce structure and skills profile of each region. Consideration may need to be given to the range of business management skills required as the sector continues to re-structure, particularly from family-run enterprises to more formal business structures (either family companies or larger commercial entities). Ongoing and close engagement with enterprises and the sector generally are an effective means of ensuring the relevancy of the scope of skills and qualifications provided by the relevant education and training providers. However the most significant challenge and one experienced by agriculture education providers across Australia is to sustain and grow training provision in the face of an overall decline in employment in the sector. This decline partly reflects increased productivity in the sector and further highlights the need for ongoing skills development in the existing workforce and strategies to attract new entrants with the skills and capabilities for the future workforce. 17

19 Key Finding 1 Agriculture has been and continues to be a critical industry in the Victorian economy, faced with a range of emerging and ongoing challenges and opportunities; a particular underlying challenge for the sector is the extent to which education and training can be relied upon to help the sector respond to these challenges and capitalise on opportunities. In VET, there is strong demand for both technically-oriented skills that are focused on operational tasks, and future-oriented skills that are focused on adapting to increasing complexity in production, agribusiness and natural resource management. In higher education, demand appears to be stronger in research and development and post-farm gate. Each region will have specific sectoral skills requirements and therefore the education and training sector needs to meet demand for generalisable skills as well as the particular skills within a region. The most significant challenge and one experienced by agriculture education providers across Australia is to sustain and grow training provision in the face of an overall decline in employment in the sector. 2.2 The Agriculture, Forestry and Fishing industry This section presents an analysis of the Agriculture, Forestry and Fishing industry in Victoria, based largely on Monash Centre of Policy Studies (CoPS) industry forecasts of industry growth and skills requirements Industry Overview The Agriculture, Forestry and Fishing industry makes a large contribution to Victoria s economy approximately $8.2 billion of a total $276 billion gross value added. The industry s output has grown at an annual average of approximately 4 per cent over the five years to June 2013, but at the same time, employment has experienced negative growth. This trend in negative employment growth is expected to be reversed over the coming five years, with anticipated growth of approximately 4 per cent (DEECD 2014, Agriculture, Forestry and Fishing industry snapshot). Exports to emerging economies in Asia are likely to continue to be important to the sector, while domestic demand continues to be driven by the supermarket giants product-specific policies. The sector is impacted by climate change and sustainable management issues related to the use of natural resources such as water, soil and Australia s oceans. Over the year to May 2014, the industry employed an average of 90,000 people across Victoria, around 90 per cent of whom are employed in the Agriculture subsector. As set out in Figure 1, the number of people employed in Agriculture, Forestry and Fishing has increased since early 2013, but has been trending down over the last three decades. Similarly the share of Victorian employment in Agriculture, Forestry and Fishing has fallen from 5.5 per cent in the mid-1980s to around 3 per cent today. 18

20 Figure 1 Employment in Agriculture, Forestry and Fishing in Victoria 6% 120,000 5% 4% Total employed 100,000 80,000 3% 2% Proportion of Victorian employment 60,000 40,000 1% 20,000 0% Note: 12 month moving average. Source: ABS Over the last 20 years, the age profile of the Agriculture, Forestry and Fishing workforce has changed, with the proportion of workers older than 45 years increasing. Figure 2 shows that 26 per cent of the industry s workforce is now 60 years old and over, up from 16 per cent in the early 1990s. Conversely, the proportion the workforce aged has fallen from 15 per cent to 10 per cent over the same period. The Agriculture, Forestry and Fishing workforce is dominated by Managers, which includes Farmers and Farm Managers. As shown in Figure 3, the proportion of Mangers has fallen over recent decades to below 60 per cent of the workforce, most likely reflecting farm consolidations and increased corporatisation of the industry. 19

21 Figure 2 100% 90% Age profile of the Agriculture, Forestry and Fishing workforce in Australia % 70% 60% % 40% 30% % 10% % Aug-91 Feb-93 Aug-94 Feb-96 Aug-97 Feb-99 Aug-00 Feb-02 Aug-03 Feb-05 Aug-06 Feb-08 Aug-09 Feb-11 Aug-12 Note: 12 month moving average Source: ABS Figure 3 Occupational characteristics of the Agriculture, Forestry and Fishing workforce in Victoria Managers Labourers Other Technicans and Trades Workers Note: Other includes Professionals, Community and Personal Service Workers, Clerical and Administrative Workers, Sales Workers, and Machinery Operators And Drivers. Moving 12 month average. Source: ABS

22 Figure 4 Occupation share in the Agriculture, Forestry and Fishing workforce in Victoria Technicians and Trades Workers 5% Other 11% Labourers 19% Farmers and Farm Managers 63% Other Managers 2% Source: ABS 2012 Census In early 2014 the Commonwealth Government commissioned a White Paper on Australian agriculture s productivity and profitability. Central to the task of increasing productivity in the sector is improving management, leadership and entrepreneurial skills across the industry. In particular, global demand, climate change mitigation, an ageing workforce and the ongoing rationalisation of farms into larger corporate structures to improve economies of scale, have exacerbated the need for professionally-trained farm managers. Agriculture, Forestry and Fishing skill needs are becoming increasingly technical, innovative and developmental in nature, focusing on topical issues such as biodiversity, microbiological sampling and testing, genetics and selective breeding and biosecurity. While the industry s skills needs continue to increase, the Agriculture, Forestry and Fishing workforce has a below average qualification profile. Figure 5 shows that while 65 per cent of non-agriculture workers have completed Year 12, only 36 per cent of the Agriculture, Forestry and Fishing workforce graduated high school. Similarly, around 60 per cent of the Victorian workforce has a non-school qualification compared to only 40 per cent of the Agriculture, Forestry and Fishing workforce. 21

23 Figure 5 Qualification profile of the Agriculture, Forestry and Fishing workforce in Victoria (2012) Highest year of school completed 65% 61% Highest non-school qualification completed 36% 39% 7% 2% 10% 4% 24% 22% 14% 15% 3% 3% 19% 18% 9% 10% 8% 21% 2% 9% Year 8 or below Year 9 or equivalent Year 10 or equivalent Year 11 or equivalent Year 12 or equivalent No qual. Certific. I or II Certific. III or IV Diploma Bachelor degree Higher degree Agriculture, Forestry and Fishing All other industries Note: Certificate I or II includes Certificate Level, nfd. Source: ABS 2012 Census Training alignment with industry needs According to the DEECD Industry Snapshot, the Agriculture occupations employing the most workers Livestock and Crop farmers and farm workers, and plant operators are forecast to shrink in employment terms over the five years to Numbers of workers in these occupations in Victoria are forecast to fall by approximately two per cent in total over the five year period. Due to both employment growth and replacement demand (new workers required to fill absences from retirement and other movement out of the industry), over 1,500 new workers (two per cent of the total employed in these occupations) will be required annually. As a gross analysis, the 2013 enrolments aligned with these occupations appear well placed to satisfy the corresponding annual skills needs. A regional analysis is helpful in considering how well skills needs of industry are met by the training system. Figure 6 shows the breakdown of total industry employment and VET enrolments by region. Unsurprisingly, in 2011 regional Victoria accounted for the majority of agricultural VET enrolments and employment 84 per cent of each. Great South Coast, Gippsland, Hume and Loddon Mallee North were the largest regions in terms of both employment (61 per cent of total State agricultural employment and 67 per cent of VET enrolments. The overall split between metropolitan and regional training and employment is consistent, however when individual regions are examined more closely, significant mismatches are apparent. For example, while 16 per cent of total industry employment is in Gippsland, the region contains only 10 per cent of VET enrolments. Conversely, while 13, 18 and 14 per cent of industry employment is located in the Great South Coast, Hume and Loddon Mallee North regions respectively, they contain a significantly larger proportion of VET training 17, 21 and 19 per cent respectively. While labour is mobile to a certain extent, these patterns suggest the possibility that training is less responsive to regional industry demands than would be optimal. Further analysis is required to confirm this, however. 22

24 Figure 6 Regional share of industry employment and VET enrolments (2011) 13% 17% 16% 18% 21% 14% 19% 4% 9% 10% 7% 7% 2% 4% 6% 4% 3% 3% 2% 5% 7% 1% 2% 6% 2% 1% Geelong & Great South Gippsland Surrounds Coast Central Highlands Wimmera Southern Mallee Hume Loddon Mallee North Loddon Mallee South Eastern Metro Northern Metro Southern Metro Western Metro Inner Metro Employment (% of total) Enrolments (% of total) Source: DEECD (2013) Agriculture industry training snapshot Key Finding 2 The Agriculture, Forestry and Fishing industry has seen a steady reduction in total numbers employed, and in employment as a share of the total Victorian workforce, over the past three decades. The most recent five years have seen an increase in employment, and while sources such as ABARE predict strong growth in the sector, it is too early to tell whether this recent increase is a permanent reversal of the longer-term trend. The workforce is ageing, with more than a quarter over the age of 60. Only a third of the workforce has completed year 12, and 61 per cent has no post-school qualification. 2.3 Future demand for agricultural training Where the previous section looked at the long-term trends in agricultural production, employment and workforce demographic, occupational and training profiles, this section examines likely future trends in demand for skills and demand for training. The 2014 AgriFood ISC Escan points to three key market factors driving the training needs of industry and employers in the near future: 1. Skills Sets: Industry and employers continue to value Skill Sets and, while not suggesting they replace qualifications, propose that Skill Sets form an equally valued and funded pathway within each jurisdiction. 2. Balancing student preferences with industry and employer needs: The National Training Entitlement, a major component of the 2012 COAG National Partnership Agreement on Skills Reform, will provide all working age Australians without a Certificate III or higher with access to a subsidised training place. These or similar reforms have already been implemented in several jurisdictions. The Escan reports industry and employer concerns that leaving the flow of skilled labour to market forces alone is unsustainable and represents a significant risk to the future of industry. 3. Traineeship incentives: Industry and employer concerns at the removal of commencement incentives for Certificate II traineeships include reports that RTOs are 23

25 now enrolling students directly into Certificate III, where Certificate II remains the appropriate entry point for many students to the industry. As discussed in the previous section, the Escan also points to emerging challenges associated with the globalisation of the agricultural and other marketplaces. Industry attractiveness: As also highlighted in the recent report on young farmers (Barr 2014), the agriculture industry has significant issues attracting young people. This is due to several factors, including perception issues associated with recent droughts, and lifestyle factors meaning that many young people shy away from life in the regions, which they perceive as being isolated. Competition: Agriculture competes for skilled labour with, to a certain extent, other highvalue industries such as in resources extraction. As discussed in the Escan, though, as the resources boom eases, industries such as Agriculture are becoming increasingly important to the Australian economy (possibly indicated in the recent up-tick in Figure 1, and the increasing focus on high-value production may help increase the attractiveness of the sector. Schools, and perceptions of agriculture as a career path Throughout the review, and discussed above, stakeholders noted the perception issues that agriculture has attracting young people into the workforce. This difficulty is reflected strongly in the data on school students participation in agriculture. Figure 7 shows growth rates in agriculture-related VCE / VCAL unit completions, compared with growth in population of 16 and 17 year-olds. Clear from the figure is that while population has grown steadily over the eight years to 104 per cent of 2005 levels by 2013, agriculture-related unit completions have dropped significantly, to only 63 per cent of 2005 levels by 2013 just over 1,000 unit completions. Similarly, Figure 8 shows that agriculture-related VCE enrolments have decreased significantly in all areas both metropolitan and regional since levels were between 14 and 70 per cent of 1995 levels in regional areas, and between 0 and 73 per cent of 1995 levels in metropolitan areas. Figure 7 Growth in agriculture-related VCE/VCAL unit completions, compared with population, (indexed to 2005 = 100) VCE/VCAL unit completions year old population Source: Data request from VCAA 24

26 Figure 8 Growth in agriculture-related VCE enrolments, (indexed to 1995 = 100) 150 Regional areas Barwon South-West Region Gippsland Region Grampians Region Hume Region Loddon-Mallee Region Metropolitan areas Northern Metropolitan Region Western Metropolitan Region Southern Metropolitan Region Eastern Metropolitan Region Source: Data request from VCAA A school-based agriculture program, funded by the State Government and delivered by the Victorian Farmers Federation, is attempting to reverse the steady decline in school-based agriculture education participation. The first instance of this the Timboon Agriculture Project, near Colac is reportedly achieving significant results in engaging school students in agriculture, by delivering standard curriculum, but relating it to the agricultural context important to the community. Community engagement and enthusiasm for the project has been critical in its success, and the VFF is currently implementing it in a number of schools around the state. Key Finding 3 The agriculture industry faces significant difficulty attracting young people, due in part to lifestyle perceptions and issues relating to recent severe droughts, and in part to competition from other sectors, such as the resources sector. Compounding, and in part reflecting this, is the significant and long-term decline in school participation in agriculture-related units. 25

27 3 Training delivery by Victorian agricultural colleges 3.1 Victorian agricultural colleges This review focuses on the six existing agricultural colleges in Victoria, listed in Table 2. The agriculture colleges were initially established by the Victorian Government and operated as Dookie Agricultural College, the Glenormiston Agricultural College, the Longerenong Agricultural College, the Burnley Horticultural College, the McMillan Rural Studies Centre (Warragul) and the Gilbert Chandler College of Dairy Technology. In 1983, these colleges were amalgamated into the Victorian College of Agriculture and Horticulture. In 1997, the Dookie and Burnley campuses of the Victorian College of Agriculture and Horticulture merged with the University of Melbourne's Faculty of Agriculture, Forestry and Horticulture, creating the Institute of Land and Food Resources (now the School of Land and Environment). The Glenormiston, Longerenong and Warragul campuses are owned by the Ministers for higher Education and Skills, while the Gilbert Chandler campus is owned by the Department of Environment and Primary Industries. The Glenormiston College was closed in March Gilbert Chandler (focusing on dairy processing qualifications) and The University of Melbourne Burnley campus (focusing on amenity horticulture) are different in nature to the other four agricultural colleges. They do not have as strong a connection with education and training for the agricultural production sector and, on the advice of the review s Reference Panel, delivery at Gilbert Chandler and The University of Melbourne s Burnley campus is discussed only briefly in the body of the report. Further detail on these campuses can be found in Appendix D and Appendix E respectively. Table 2 Victorian agricultural colleges College Location Owner Operator Longerenong College Warragul Campus Gilbert Chandler Campus Dookie Campus Burnley Campus Glenormiston College Source: North-east of Horsham Warragul Werribee Dookie Burnley Terang The Minister for Higher Education and Skills The Minister for Higher Education and Skills Department of Environment and Primary Industries The University of Melbourne The University of Melbourne The Minister for Higher Education and Skills WorkCo Ltd Community College Gippsland GOTAFE The following sections briefly describe each campus and its current operation. The University of Melbourne The University of Melbourne Previously South West Institute of TAFE Longerenong College Established in 1889, Longerenong College is situated 13 kilometres north-east of Horsham and delivers VET in Schools, farm apprenticeships, Certificate IV courses in agriculture and 26

28 wool classing and a range of Diplomas and Advanced Diplomas. The college operates a teaching farm conducted along commercial principles on 1,070 hectares of land, and operates a 150 hectare grazing lease at Darlot Swamp. The farm is a mix of enterprises with about 600 to 750 hectares sown to crops each year with the remainder used for sheep and cattle grazing. The University of Melbourne withdrew from the Longerenong campus at the end of 2005 and, since that time, the campus has been operated by WorkCo Ltd. Bayer CropScience operates an Agricultural Research Centre at the campus, focused on wheat and oilseeds. It has invested $14 million in the facility. McMillan Warragul Campus The McMillan Rural Studies Centre was established in 1977 with a particular remit to offer education and training to practising farmers and an emphasis on delivering training that suited the agricultural workforce in its content, presentation and timing. This led to innovation in course delivery (evening and weekends) and the development of expertise in distance education. The Centre is now operated by Community College Gippsland. Courses offered include Certificates II-IV in Animal Services, Racing (through association with the Gippsland Harness Training Centre), Certificate III to Advance Diploma in Agriculture, Certificate III and Diploma in Conservation and Land Management, Certificate III to Diploma in Horticulture, as well as short courses relating to animal handling and farm operations. Gilbert Chandler Centre Established as the School of Dairy Technology and Dairy Research Laboratories in 1939, it was renamed the Gilbert Chandler Institute of Dairy Technology in In 1983, after a review of the Institute s functions and operations, it became part of the Victorian College of Agriculture and Horticulture with a separation of its research and education functions. The teaching activities of the Institute focused on skills training for industry and employers, though in the late 1980s it began delivering higher education qualifications. Located in Werribee, the Gilbert Chandler Centre continues to focus on training for the dairy sector. The National Centre for Dairy Education partners with GOTAFE to deliver Certificate to Advanced Diploma courses specific to dairy production and processing. Dookie Campus Dookie Agricultural College commenced operation in 1886 and extends to 2,500 hectares, comprising a broad acre farm, orchard, winery, dairy farm, vineyard and bushland reserve. From its beginning, Dookie emphasised both education in agriculture and research. In 1986, Dookie offered an undergraduate degree in applied science (agriculture) and by 1996 this had expanded to agribusiness, production horticulture, natural resource management and food technology. The campus currently delivers a Bachelor of Agriculture, Master of Wine Technology and Viticulture, Master of Agribusiness and Postgraduate Certificate in Climate Change for Primary Industries, as well as higher degrees by research. The major focus of research activity at the Dookie campus is irrigation and water sustainability. Burnley Campus Burnley was first established as experimental gardens by the Horticultural Society of Victoria in 1863 and control of the gardens was taken over by the Department of Agriculture in Horticultural education commenced in that year; unusually, Burnley offered full-time tertiary education to women from the early 1900s. From the 1960s, Burnley expanded its provision to encompass all aspects of horticulture, from fruit and vegetable production to green- 27

29 keeping, landscaping, domestic garden design and nursery management. In 1981, fruit and vegetable production courses were transferred to Dookie; from 1985 higher education qualifications in horticulture were offered in addition to VET qualifications. Affiliation with the University of Melbourne occurred in 1997 and since that time, VET courses have been phased out and a full range of higher education qualifications offered (Associate Degree to higher degrees by research). Glenormiston College Situated at the historic Glenormiston property at Terang, 53 km north east of Warrnambool, the college was, until 2014, South West Institute of TAFE s agricultural and equine training campus. It was established by the Victorian Government in 1967 as a specialist farm management college with a dairy focus; expansion to equine studies occurred in South West TAFE ceased course delivery at Glenormiston from March 2014, though it will continue to deliver VET agriculture courses through a blended model of on-the-job, offcampus and online delivery. Since South West TAFE withdrew from its involvement with Glenormiston College, the Department of Education and Early Childhood Development has undertaken a process to either secure an alternate training provider for the site or, failing that, to identify viable alternate uses for the site: Prior to handover, South West TAFE contacted 13 TAFEs, inviting expressions of interest in taking over the Glenormiston site. No interest was expressed in response. Following handover, a steering committee, headed by the Honourable Simon Ramsay MP, and including Departmental and local community representatives, was established, and a consultant was engaged to identify the most appropriate options for the future use of the site. This process is currently underway. Due to the continuing status of the concurrent review of future uses of Glenormiston College, this review did not engage with local stakeholders of the college, but rather consulted with South West TAFE and the DEECD project managers. This review makes no conclusions or recommendations about appropriate future uses for the site other than on its ongoing viability as an agricultural college, and instead refers to the forthcoming recommendations of the concurrent review of Glenormiston College. We recommend that the analysis contained within this report be considered by the review of Glenormiston College. Other providers of agricultural education and training As discussed in more detail in the sections that follow, there are other providers delivering significant quantities of agricultural education and training in Victoria, particularly so since the reform of the Victorian VET system. Some of the more prevalent examples of these are described briefly below: Goulburn Ovens Institute of TAFE (GOTAFE): GOTAFE is a significant provider of agricultural training, as well as of training for many other industries. Originally based in the North-East of Victoria, it now operates across the state, including a major partnership with Dairy Australia via the National Centre for Dairy Education Australia (NCDEA) (see Box 2). GOTAFE delivered over 3,000 agricultural production course enrolments in Gordon Institute of TAFE: Gordon Institute of TAFE is a large provider based in Geelong, but delivering agricultural production training across the state via flexible 28

30 delivery models. Gordon Institute of TAFE, among its broader delivery, delivered over 1,700 agricultural production course enrolments in Bendigo Regional Institute of TAFE: Bendigo Regional Institute of TAFE, based in Bendigo, delivered over 800 agricultural production course enrolments in 2012, among its broader delivery, predominantly to students residing in the Greater Bendigo area. Northed International College: Northed International College is a private provider of agricultural training to international and domestic students. Northed delivered approximately 700 course enrolments in production horticulture and agriculture in South West Institute of TAFE: SWIT operated Glenormiston Agricultural College before withdrawing in early Including delivery through Glenormiston, SWIT delivered almost 600 agricultural production course enrolments in Excluding Glenormiston delivery this figure is approximately 200. Rural Industries Skill Training (RIST): RIST is based in the south-west of Victoria near Hamilton. Focused predominantly on the sheep industry in the region, RIST delivers a flexible model of training, utilising on-farm assets for practical demonstration and assessment. RIST delivered almost 500 course enrolments in agricultural production qualifications in Higher education providers: Several higher education providers compete with The University of Melbourne for delivery of agricultural qualifications. Latrobe University (based in the north-east of Melbourne) and the newly formed Federation University delivered 560 and 125 enrolments respectively in Marcus Oldham College, a private non-university higher education provider based in Geelong, specialises in agribusiness qualifications and delivered over 300 enrolments in 2013, and is an example of a long-running, successful provider delivering a niche offering to a small and clearly defined segment of the market. Other significant providers are Deakin University (775 enrolments), Monash University (550 enrolments) Swinburne University (170 enrolments), Victoria University (70 enrolments), and the dual-sector institutions RMIT University (1,900 higher education enrolments) and Northern Melbourne Institute of TAFE (240 higher education enrolments). The fact that there is significant contribution of delivery of agricultural education and training by providers other than the agricultural colleges means that a focus just on the institutions once part of the Victorian College of Agriculture and Horticulture is overly reliant on the historical definition of agricultural colleges from the days of the VCAH. As discussed in section 1.1, the review has instead taken the perspective of the education and training needs of industry and employers and asks how these needs are being met, and how the agricultural colleges fit into the broader market for provision of education and training that meets these needs. 29

31 Box 2 National Centre for Dairy Education Australia The National Centre for Dairy Education Australia (NCDEA) is a partnership between Dairy Australia (the Diary industry s Research & Development Corporation) and Goulburn Ovens Institute of TAFE (GOTAFE)*. The partnership focuses on translating research findings into training, and delivering them to dairy farmers, rapidly moving research to practice. Dairy Australia subsidises NCDEA training in thin training markets, and works with GOTAFE to embed latest best practice into existing training packages. While stakeholders reported that the dairy industry has a particularly strong history of engagement with education and training, it is likely that the success of the NCDEA model could be replicated in other sub-sectors, with rural RDCs playing an important coordinating role between industry and the training sector. Note: *GOTAFE is the major partner, operating in Victoria; in other states, smaller partnerships are in place with other RTOs Source: ACIL Allen Consulting Key Finding 4 Victoria s agricultural colleges historically comprised six campuses that have a long history of education and training provision under a variety of arrangements. The campuses vary significantly in nature and do not represent an interconnected network of agricultural education and training colleges. Under the current arrangements, three campuses are operated by a private RTO (Longerenong), large ACE provider (McMillan Warragul) and TAFE institute (Gilbert Chandler), two campuses are owned and operated by the University of Melbourne (Dookie and Burnley), and the Glenormiston campus is currently vacant. Notwithstanding their long history, it is important to recognise that Victoria s agricultural colleges are now operating in a market amongst many other providers that are also catering to the education and training needs of the sector. The two sections that follow investigate the scale, trends and market shares of delivery of agricultural education and training by the six colleges within the context of the broader education and training market. VET provision (section 3.2) and Higher Education provision (section 3.3) are presented separately, due to the significant differences in those markets and differences in definitions of markets and market shares Data limitations The remainder of this chapter reports on data available from the National Centre for Vocational Education Research (for VET data) and the Commonwealth Department of Education (for higher education data). While the best data available, there are some limitations to the extent to which they allow the true nature of and extent of education and training delivery to be determined, notably: Location of student residence: Both data sets record data on student residence location. These data may be unreliable to the extent that some students may list their parents postcode if they have relocated to study, while others may list their new, relocated postcode. Location of delivery: Postcode of delivery may also be unreliable, as some providers may list the postcode where the large proportion of delivery is located, even if some is delivered at alternate locations. Additionally, some providers may list their organisational office rather than the location where training was actually delivered. 30

32 Higher education qualifications: In contrast to VET, where qualifications are standardised with universal codes and names, higher education providers have greater flexibility in naming qualifications. It is therefore difficult to assess which qualifications are alike, other than at a broad level, without analysing the content of each individual qualification. Consequently, broad groupings such as Environmental Science may contain a significant proportion of delivery that is not relevant to agriculture. Publicly subsidised VET: There are two key limitations in use of the NCVER National VET Collection. First, it is currently not possible to track the enrolment retention and completion patterns of students; this issue will be resolved from 1 January 2015 when the requirement of a unique student identifier is introduced. Second, the NCVER National VET Collection does not require compulsory reporting for VET delivered on a fee for service basis. This means that a material component of the VET market is likely to be under-reported. 3.2 VET enrolments and market share of Victorian agricultural colleges The analysis that follows generally presents enrolments, market share and participation trends for three sets of qualifications: (i) All 96 AgrifFood Qualifications the 96 qualifications that come from the seven AgriFood ISC training packages (ii) 36 Agricultural Production Qualifications those 36 qualifications identified by the Review s Reference Panel as being of specific relevance to Agriculture, Production Horticulture and Agribusiness (iii) Qualifications Delivered by the College only the subset of set of those 36 qualifications that is delivered by the College in question. The 36 agricultural production qualifications are listed in Appendix B. The three sets of qualifications are presented because several of the agricultural colleges have recently delivered, or do currently deliver, training in areas such as racing and food processing, in addition to those more traditionally delivered by the agricultural colleges. Enrolments in vocational agricultural qualifications Over all AgriFood ISC training packages, there were over 33,000 enrolments in 96 qualifications in 2013, covering areas such as agriculture, horticulture, agribusiness, racing and veterinary services, wool preparation and food processing. Among the 36 qualifications considered within the scope of the agricultural colleges, however, enrolments were far fewer just under 9,000. As shown in Table 3, almost half of enrolments under AgriFood training packages were in the largest five qualifications, dominated by Food Processing and Amenity Horticultural qualifications. Of these largest five, only one the Certificate III in Agriculture features in the 36 agricultural production qualifications. Over three quarters of the 36 agricultural production enrolments were in the largest five qualifications. These were Certificates II, III, IV in and Diploma of Agriculture, and Certificate III in Production Horticulture. 31

33 Table 3 Top ten enrolments in agricultural qualifications (2013) All 96 AgriFood qualifications Qualification Course Enrolments Percentage of total 36 agricultural production qualifications Qualification A C I L A L L E N C O N S U L T I N G Course Enrolments Percentage of total Certificate III in Meat Processing 3,945 12% Certificate III in Agriculture 2,474 28% Certificate III in Food Processing 3,511 11% Certificate II in Agriculture 1,380 15% Certificate III in Agriculture 2,474 7% Certificate III in Production Horticulture 1,137 13% Certificate III in Horticulture 2,473 7% Certificate IV in Agriculture 1,136 13% Certificate III in Retail Baking 2,229 7% Diploma of Agriculture 367 4% Other 18,657 56% Other 2,458 27% Total 33, % Total 8, % Source: NCVER Provider-level collection Key Finding 5 The scope of agriculture training may be based on: A broad definition comprising over 33,000 enrolments across 96 qualifications administered by AgriFood Skills Australia or A narrow definition comprising almost 9,000 enrolments across 36 qualifications more commonly associated with agricultural production. In both cases, a small number of qualifications make up a large proportion of enrolments: Under the broad definition, 5 qualifications comprise 44 per cent of enrolments Under the narrow definition, 5 qualifications comprise 73 per cent of enrolments. Since the industries driving training demand in agriculture are relatively distinct in terms of industry cycles as well as training requirements it is interesting to examine enrolment trends and overall growth for Agriculture, Production Horticulture and Agribusiness separately. Table 4 shows the qualifications placed into these three categories, and a fourth category Other qualifications that relate to specific industries. Agriculture contains seven of the 36 total qualifications; Production Horticulture four; Agribusiness seven and Other qualifications 18. Agriculture qualifications had over 5,600 course enrolments in 2013; Production Horticulture over 1,700; and Agribusiness fewer than 200. There were over 1,400 course enrolments in other qualifications. 32

34 Table 4 Separation of 36 agricultural production qualifications into content areas A C I L A L L E N C O N S U L T I N G Agriculture Production Horticulture Agribusiness Other qualifications Certificate I in AgriFood Operations Certificates I, II, III and IV in and Diploma and Advanced Diploma of Agriculture 7 qualifications 5,605 enrolments (2013) Source: ACIL Allen Consulting Certificates II, III and IV in and Diploma of Production Horticulture 4 qualifications 1,721 enrolments (2013) Certificate IV in Agribusiness Diploma and Advanced Diploma of Agribusiness Management Certificates III and IV in Rural Business Diploma and Advanced Diploma of Rural Business Management 7 qualifications 170 enrolments (2013) Certificates I, II and III in Rural Operations Certificate II in Crutching Certificates II, III and IV in Shearing Certificates II and III in Wine Industry Operations Certificate II in Wool Handling and III in Advanced Wool Handling Certificate III in Wool Clip Preparation Certificate IV in Wool Classing Certificates III and IV in Irrigation Certificate III in and Diploma of Pork Production Certificate III in Poultry Production 18 qualifications 1,456 enrolments (2013) The growth in enrolments in agriculture qualifications, disaggregated into the four industry sub-categories, is shown in Figure 9 (as course enrolments indexed to 2008 = 100). All categories have experienced enrolment growth from 2004, with growth across the sector increasing by approximately 20 per cent by 2013 compared with 2008 levels. Agribusiness enrolments display particularly spikey growth, partly due to the small number of overall enrolments meaning that small changes in numbers can have relatively large impacts in proportional terms. The large increase in agribusiness enrolments in 2011, for example, and the return to approximately 2010 levels in 2012 is most likely due to providers claiming inappropriately high numbers of recognition of prior learning (RPL) numbers. This practice was corrected by DEECD in the 2012 training year. Overall enrolments grew to almost 50 per cent above 2008 levels in 2012, before returning to approximately 20 per cent above 2008 levels in This growth coincides with the introduction of the demand driven VET system in Victoria, where places were uncapped and the system saw significant increases in activity across the training sector. 33

35 Figure 9 Growth in Victorian course enrolments in agricultural production qualifications (2004 to 2013, indexed to 2008=100) 1, Agriculture Production Horticulture Agribusiness Other Total Agriculture Production Horticulture Other Total Source: ACIL Allen Consulting based on NCVER VOCSTATS Key Finding 6 Since 2004, VET enrolment growth has been modest, with more recent growth following the introduction of the VTG. Since 2008, there has been an increase in enrolments of approximately 20 per cent. 73 per cent of enrolments in agricultural production are concentrated in just five qualifications. There is evidence of significant volatility in the market with agribusiness courses facing a significant spike in enrolments in Figure 10 shows enrolment growth broken down by qualification level. This breakdown allows a closer examination of unexpected RPL activity in 2011, with a significant increase in the level of Production Horticulture Diploma / Advanced Diploma qualifications, and in Certificates III and IV Agribusiness qualifications (not shown in the figure as the indexed figures are off the scale). Overall, the strongest growth was seen in Certificate III and IV enrolments, which increased to over 50 per cent above 2008 levels by 2013, and which make up the majority of enrolments 5,100 out of the total 8,952. The lower level Certificates I and II make up almost 1,700 enrolments, and grew at approximately the average rate to Higher level qualifications fell significantly to 2013, a pattern that was consistent across the content areas. In total, enrolments in Diplomas and Advanced Diplomas fell to approximately 700 in 2013, less than half 2008 levels. This concerning decline runs counter to the expectation that agricultural workers will become increasingly higher skilled as the industry increasingly relies upon capital and technology rather than labour. However, the trend was in part reflected in consultations with stakeholders of the review, who indicated 34

36 that specific skill sets in, for example, the use of high-tech equipment, were becoming as important as qualifications. Figure 10 Growth in agricultural production course enrolments by content area and qualification level (2004 to 2013, indexed to 2008 = 100) Agriculture Production Horticulture Certificates I and II Certificates III and IV Diploma and Advanced Diploma Total Certificates I and II Certificates III and IV Diploma and Advanced Diploma Total Agribusiness* Other 1, Diploma and Advanced Diploma Total Certificates I and II Certificates III and IV Total Total Certificates I and II Certificates III and IV Diploma and Advanced Diploma Total Note: *Agribusiness had no Certificate I or II qualifications. Certificates III and IV are not shown as the index year (2008) had very few enrolments, meaning that the other years are off the scale. Source: ACIL Allen Consulting based upon NCVER VOCSTATS Key Finding 7 Considering the composition of enrolments by qualification level, since 2008: There has been significant growth at the Certificate III and IV level at almost 60 per cent Certificates I and II have also grown strongly by approximately 30 percent Diplomas and Advanced Diplomas have declined sharply, falling steadily year-on-year and by more than half over the period

37 2012 course enrolments A C I L A L L E N C O N S U L T I N G Market share of Victorian agricultural colleges Of the four agricultural colleges that delivered VET qualifications in 2013 Longerenong College, McMillan Warragul, Gilbert Chandler and the now defunct Glenormiston College none had a significant market share in any of the qualifications of interest. Figure 11 shows the size of the agricultural colleges relative to the size distribution in the market. Glenormiston College delivered almost 1,000 enrolments in 2012, a large number of which were outside the definition of in scope qualifications. The smallest of the agricultural colleges was Gilbert Chandler, delivering only 98 qualifications in dairy processing. As shown in the figure, there is a long tail of providers delivering very few qualifications. Of 96 Victorian providers of agricultural training, 44 had fewer than 50 course enrolments in Figure 11 Distribution of Agricultural VET enrolments by providers (2012) 5,000 4,000 3,000 2,000 1,000 Longerenong Gilbert Chandler Glenormiston Warragul - Source: ACIL Allen Consulting based upon NCVER Provider-level collection Only four of the six Victorian agricultural colleges deliver VET qualifications Longerenong College, McMillan Warragul, Gilbert Chandler and the now defunct Glenormiston College. Across all 96 AgriFoods qualifications, these four Victorian agricultural colleges made up a relatively small part of the market in 2012, with a combined market share of just 4.8 per cent. Other TAFE providers unsurprisingly made up the largest part of the market, with 70 per cent of total delivery, with other providers of publicly subsidised training delivering approximately 23 per cent. However, in order to more narrowly define the market within which the four agricultural colleges deliver VET training, Table 5 shows the market share of the agricultural colleges restricted to just the qualifications offered by those colleges. Defining the market in this way, the market share of the four colleges remains low: Gilbert Chandler s market share in 2012 was approximately 6 per cent; the market shares of McMillan Warragul and Longerenong College were approximately 3 per cent; and the market share of Glenormiston was approximately 4 per cent. 36

38 Table 5 A C I L A L L E N C O N S U L T I N G Market share of agricultural colleges in the qualifications they deliver (2012) College Enrolments Total enrolments in the same qualifications Market share of those qualifications Gilbert Chandler 98 1,589 6% McMillan Warragul ,093 3% Longerenong 184 7,097 3% Glenormiston ,679 4% Source: ACIL Allen Consulting based upon NCVER provider-level collection Figure 12 shows markets defined even more narrowly, to focus on the agricultural colleges main geographic region. The figure shows the market shares of the agricultural colleges in their region using three market definitions: Only those agricultural production qualifications delivered by the college in question All 36 agricultural production qualifications (with the exception of Gilbert Chandler, where the equivalent market is defined as food processing delivery) All 96 AgriFood qualifications. Regions here are defined as the Local Government Areas (LGAs) from which the College draws 60 per cent of its enrolments. Figure 12 Market share of the agricultural colleges in their main region of delivery Longerenong College McMillan Warragul 100% 100% 75% 75% 50% 50% 25% 25% 0% Agricultural qualifications that Longerenong delivers All Agricultural qualifications All Agrifood qualifications 0% Agricultural qualifications that McMillan delivers All Agricultural qualifications All Agrifood qualifications Longerenong College Other providers McMillan (Warragul) Other providers Gilbert Chandler Glenormiston 100% 100% 75% 75% 50% 50% 25% 25% 0% Food Processing qualifications that Gilbert Chandler delivers All Food Processing Qualifications All Agrifood qualifications 0% Agricultural qualifications that Glenormiston delivers All Agricultural qualifications All Agrifood qualifications Gilbert Chandler Other providers Glenormiston Other providers Note: Agricultural qualifications indicates those 36 Agricultural Production qualifications considered in scope of the review. Please see Appendix B for the list of 36 agricultural production qualifications defined in these charts as In scope. Main region of delivery is defined as those LGAs in which 60% of the College s students reside. Source: ACIL Allen Consulting based upon NCVER provider-level data 37

39 The figure shows that even looking at the narrowest possible definition of the market in which the colleges operate competition in the agricultural production qualifications delivered by the college, in the region in which it is most active market shares remain quite low: 7 per cent for Longerenong; 14 per cent for McMillan Warragul 19 per cent for Gilbert Chandler 16 per cent for Glenormiston. The remaining analysis of VET delivery at Gilbert Chandler is presented in Appendix D, and omitted from the body of the report. The review s Reference Panel, advised that Gilbert Chandler, despite its historic association with the Victorian College of Agriculture and Horticulture, shares little in common with the other agricultural colleges. Gilbert Chandler s delivery focuses on food processing qualifications, while the focus of agricultural colleges such as Longerenong, McMillan Warragul, Glenormiston and Dookie is on agriculture and production horticulture. Market share of other VET providers Table 6 shows the overall market share of Longerenong College, McMillan Warragul and Glenormiston College for the categories of agricultural production qualifications. A similar breakdown by qualification is shown in Appendix F. Also shown is the market share of the largest six other providers of agricultural training: Goulburn Ovens Institute of TAFE Gordon Institute of TAFE Bendigo Regional Institute of TAFE Northed International College South West Institute of TAFE Rural Industries Skill Training (RIST). The table represents a heat map a visual representation of the extent to which the statewide market for each qualification is concentrated in one of the individual providers listed. Of note from the table is the absence of highlighted cells in the columns corresponding to the three agricultural colleges: Longerenong College delivered 3 per cent of enrolments in the Certificate IV in Agriculture, 8 per cent in the Advanced Diploma of Agriculture and 5 per cent in the Certificate III in Wool Clip Preparation, and at most 1 per cent in any category McMillan Warragul delivered 44 per cent of enrolments in the Advanced Diploma of Agribusiness Management, however this represents only seven enrolments Glenormiston College delivered 4 per cent of enrolments in Certificate III in Agriculture. Contrasting these very small state-wide market shares are several major players in these markets: Goulburn Ovens Institute of TAFE delivered 67 per cent of enrolments in Certificate IV in Rural business, 59 per cent in Advanced Diploma of Agriculture over 30 per cent in three other qualifications and over 10 per cent in a further four qualifications 38

40 Gordon Institute of TAFE delivered 69 per cent of enrolments in Certificate III in Rural Business, 33 per cent in Certificate IV in Rural Business and over 10 per cent in three other qualifications Northed International College delivered 28, 57 and 30 per cent of enrolments in Certificate III, Certificate IV and Diploma of Production Horticulture. Of note is that providers other than those listed those either not an agricultural college, or smaller in total delivery than those further six providers listed delivered 66 per cent of agricultural qualifications, 55 per cent of production horticulture qualifications, 79 per cent of agribusiness qualifications and 94 per cent of other qualifications. This highlights that the agricultural education and training market is much broader than the agricultural colleges. Table 6 Market shares of the agricultural colleges and other providers of agricultural training Agriculture Production Horticulture Agribusiness Other Longerenong 1% 0% 1% 0% McMillan Warragul 0% 1% 2% 0% Glenormiston 2% 0% 0% 0% Goulburn Ovens Institute of TAFE 14% 7% 8% 1% Gordon Institute of TAFE 8% 2% 10% 0% Bendigo Regional Institute of TAFE 4% 2% 0% 1% Northed International College 0% 33% 0% 0% South West Institute of TAFE 3% 0% 0% 1% Rural Industries Skill Training Centre Inc 2% 0% 0% 2% Other providers 66% 55% 79% 94% Notes: The percentage figures in each row represent the share of EFTSLs in the field delivered by each provider, meaning that rows, but not columns, sum to approximately 100% (allowing for rounding errors). The colours in the cells provide visual representation of the degree to which the market in each of the fields is concentrated at an individual provider. Source: ACIL Allen Consulting based upon NCVER provider level data 39

41 Key Finding 8 Measures of market share can depend on how the market is defined. However, regardless of how the market is defined, it is clear that the Victorian agricultural colleges have low shares of enrolments across the suite of agricultural training programs offered in Victoria. Even when market shares are examined at the individual qualification level, none of the agricultural colleges have more than 8 per cent market share of a given qualification on a state-wide basis. There is significant regional variance in this state-wide picture, both in terms of the regional importance of agriculture and in the regional importance of specific institutions. Low market share (and, indeed, low utilisation) are not necessarily indicators that an institution is not viable or sustainable Longerenong College is a good example of this however, it does indicate that the market has many other providers of agricultural education and training, some of them of significant scale Patterns of VET delivery at agricultural colleges Figure 14 shows trends in training at the agricultural colleges between 2008 and 2013, for the broader definition of 96 AgriFoods qualifications, and the narrower 36 qualifications considered in scope. Of the four colleges presented, only Longerenong has retained its focus on delivering agriculture-specific training. The other colleges deliver significant volumes of training beyond that considered of core relevance to the agriculture industry. McMillan Warragul delivers significant volumes of training beyond that shown, in areas such as childcare, aged care and hairdressing, reflecting the ACE nature of its parent organisation. Also shown in the figure is the broader delivery of the colleges (noting that no information is available about the broader delivery at Longerenong College). McMillan Warragul s non-agricultural delivery is orders of magnitude higher than the agricultural production delivery. 40

42 Figure 13 Delivery by the agricultural colleges in broad and narrowly defined qualification groups, ) Longerenong* All Agrifoods qualifications Agricultural Production qualifications Glenormiston All Agrifoods qualifications Agricultural Production qualifications Other qualifications 1500 McMillan (Warragul) All Agrifoods qualifications Agricultural Production qualifications Other qualifications Note: * Non-agricultural qualifications were delivered at Longerenong, however the data do not allow identification of these. The available data do not allow identification of non-agricultural qualifications prior to Source: ACIL Allen Consulting based upon NCVER provider-level data Broadening delivery beyond that traditionally delivered, and beyond that of core relevance to the agriculture industry, is a strategy with strong incentives under the VTG. It is also a potentially successful risk management strategy, as it provides a hedge against unpredictable market trends. However, it also risks diluting the brand and quality of the training that is delivered, a message that was reflected in consultations with stakeholders. A consistent view was expressed that where Longerenong s success was in part due to its focus on its core business, sticking to its knitting, some other colleges risked becoming less relevant to the agriculture industry by expanding delivery to a broader set of qualifications. Key Finding 9 Glenormiston, McMillan and Gilbert Chandler have sought to varying degrees to expand delivery beyond core agriculture qualifications. Patterns of travel to agricultural colleges Figure 14 shows the distances that students travel to attend each of the four agricultural colleges that delivered VET qualifications in The figure shows two starkly different patterns of travel: where students at Longerenong and Glenormiston travel from significant distances, the majority of McMillan Warragul students reside in the immediate vicinity of the college. 41

43 Figure 14 Distance travelled by students of the four agricultural colleges delivering VET qualifications km km km km <50 km 0 Source: ACIL Allen Consulting based upon NCVER provider-level data These travel patterns reflect different models of operation of the agricultural colleges: McMillan Warragul is run by Community College Gippsland, an ACE provider with a local focus, for which agricultural qualifications now constitute only a very small proportion of enrolments Over 30 per cent of Longerenong College students and almost 25 per cent of Glenormiston students travelled from over 200 km away, reflecting a state-wide reputation The fact that students are willing to travel significant distances to Longerenong and Glenormiston reflects the fact, also noted consistently during stakeholder consultations, that there remains a place for residential agricultural training, amongst the broad suite of training modes and options. Key Finding 10 It would appear that there are two models of operation: Colleges like Longerenong have sought to build a state-wide reputation for a particular training product, one employment-led and one industry-led. Colleges like McMillan have instead opted to serve to local community by offering a larger range of non-agricultural courses There remains a niche for residential agricultural training, among the broad suite of training modes and options. 3.3 Higher education enrolments and market share of Victorian agricultural colleges The analysis that follows examines agriculture-related higher education delivery in Victoria, presents Effective Full-Time Student Loads (EFTSLs) for categories, or fields, of qualifications. Unique qualification names cannot be used because, unlike in the VET system, there is no standard list of qualifications, and self-accrediting higher education institutions can name their qualifications as they see fit. Agriculture-related qualifications are defined, for the purposes of the review, as qualifications of similar nature to those delivered by Dookie College. As Burnley Campus, has a focus on amenity horticulture, which is significantly different in nature to higher education providers of agricultural and production horticultural higher education, data on Burnley campus are not included here in the body (though some data are provided in Appendix E). 42

44 Enrolments in agriculture-related higher education qualifications There were over 7,600 enrolments in agriculture-related higher education enrolments Victoria in 2013, representing almost 6,200 EFTSLs. These cover the categories Agriculture, Environmental Science, Viticulture and Winemaking, Agribusiness, Horticulture, Land Management and Conservation, and Other Food Science. The relative size of these fields in terms of enrolments and EFTSLs are shown in Table 7. Environmental Science is the largest category, and it should be noted that this category is likely to include a certain proportion of enrolments that bear little relevance to agricultural education, however, for the reasons outlined above, it is not possible to tell the extent of this. Table 7 Victorian enrolments in agriculture-related qualifications (2013) Category 2013 Enrolments 2013 EFTSLs Agriculture Horticulture Environmental Science 4,493 3,635 Viticulture and Winemaking Agribusiness Land Management and Conservation Other Food Science Total 7,662 6,276 Source: ACIL Allen Consulting based upon Commonwealth Government Higher Education Students Statistics The growth in Victorian enrolments in agriculture-related higher education enrolments by category is shown in Figure 15. The category with the most enrolments Environmental Science has also grown the most strongly, more than doubling over the five years to Agribusiness enrolments have also increased significantly, by over 50 per cent, where all other categories have remained at approximately 2008 level. Environmental Science aside, the growth in agribusiness enrolments and the coincident stagnation of enrolments in other agricultural qualifications is consistent with the views of stakeholders interviewed for the review, and with the trends in agricultural occupations presented in Chapter 2, of the industry moving away higher qualifications, outside the growing agribusiness sub-sector. 43

45 Figure 15 Growth in Victorian enrolments in agriculture-related higher education qualifications by category (EFTSL, , indexed to 2008 = 100) Agriculture Viticulture and Winemaking Horticulture Land Management and Conservation Environmental Science Agribusiness Other Food Science Source: ACIL Allen Consulting based upon Commonwealth Government Higher Education Students Statistics Key Finding 11 Other than Agribusiness and Environmental Science, enrolments in agriculture-related higher education qualifications has stagnated since Market share of higher education providers Ten higher education providers delivered agriculture-related degrees in Victoria The relative market shares of each of these is shown in Figure 16. The figure shows the market shares for 2008 and 2013, and separates The University of Melbourne into the two campuses Parkville and Dookie College. The University of Melbourne s Parkville campus has by far the highest market share in these categories of any provider listed almost 45 per cent in The market share of the Parkville campus has grown significantly from approximately 35 per cent in the five years from Interpretation of the significant increase in market share of The University of Melbourne s Parkville campus needs to be considered in the context of the introduction of the Melbourne Model from 2008 commencing students at The University of Melbourne from that year onwards undertook a broad undergraduate degree followed by a specialised Master s degree. Only the Parkville campus of The University of Melbourne, and the Northern Melbourne Institute of TAFE increased market share between 2008 and Over the same period the market share of Dookie College fell from 7 to 3 per cent. 44

46 EFTSL, indexed to 2008 = 100 A C I L A L L E N C O N S U L T I N G Figure 16 Market share of Victorian higher education providers in agriculture-related qualifications, 2008 and 2013 RMIT University Deakin University Monash University The University of Melbourne - Burnley Marcus Oldham College La Trobe University The University of Melbourne - Dookie College Northern Melbourne Institute of TAFE Federation University Australia Swinburne University of Technology Victoria University 0% 10% 20% Source: ACIL Allen Consulting based upon Commonwealth Government Higher Education Students Statistics Growth in delivery by the two University of Melbourne campuses, and of the sum of all providers, is shown in Figure 17. Agriculture-related higher education has increased approximately 50 per cent over the five years to 2013, however over the same period, enrolments have decreased significantly at Dookie College, to approximately 75 per cent of 2008 levels. The picture of Dookie College s enrolments falling, as shown in Figure 17, is consistent with the views of stakeholders interviewed during the review. Where once Dookie College played an important part in Victorian agricultural education, it has fallen in importance in the sector. Several stakeholders reported that when people want to study for agricultural higher education qualifications, they may seek to do so in overseas institutions. Figure 17 Growth in agriculture-related EFTSLs ( , indexed to 2008 = 100) The University of Melbourne - Parkville All institutions The University of Melbourne - Dookie College Source: ACIL Allen Consulting based upon Commonwealth Government Higher Education Students Statistics Table 8 shows the market share of each institution in the qualification categories relevant to the University of Melbourne at Dookie (top half of the table) and Burnley (bottom half of the table), defined as being those categories in which they delivered qualifications in

47 The University of Melbourne at Dookie had a significant market share in two categories in 2013 Agriculture (13 per cent) and Viticulture and Winemaking (50 per cent). Viticulture and Winemaking has relatively few enrolments state-wide 174 EFTSL in 2013, and Dookie has recently removed its vines and ceased delivering on-farm viticulture and winemaking education, focusing instead on small-scale wine courses. The University of Melbourne at Dookie delivered approximately 80 Agriculture EFTSL in 2013 via the Bachelor of Agriculture, however it should be noted that the precise figure is unknown due to the Commonwealth s data suppression rules, and discussions with the College indicate it is likely to be lower. In addition, the majority of most of Dookie College s agricultural activity is delivered via The University of Melbourne s Parkville campus, although it is difficult to be precise as to the extent of this. The University of Melbourne at Burnley maintains its high market share in amenity horticulture qualifications, delivering over 65 per cent of state-wide qualifications in The University of Melbourne s Parkville campus continues to deliver significant numbers of qualifications in all categories, including those in which Dookie has or had strong market share and specialised delivery, indicating either a reluctance on the University s part to commit fully to the College, or growing trends towards student desires for inner-city delivery. When analysing the delivery at Dookie College, it is important to note historic governance influences. The University of Melbourne has moved parts of its delivery of agricultural training to the Parkville campus and it is difficult to distinguish between the impact of governance decisions on enrolments from factors inherent to the Dookie campus, agricultural education and training and the agricultural industry more generally. Whatever the contributing factors, The University of Melbourne at Dookie has low market share and falling enrolments. Key Finding 12 While The University of Melbourne s enrolments have grown strongly, those at Dookie College have fallen to three-quarters of 2008 levels. Marcus Oldham maintains significant market share in agribusiness qualifications 75% in 2013 The University of Melbourne at Dookie College had significant market share in Viticulture and Winemaking in 2013, however overall numbers were low, and the College has recently removed its vines and ceased on-site production. The University of Melbourne s Parkville campus maintains high market share in those qualifications of most relevance to Dookie. 46

48 Table 8 Overall market shares of Dookie College, Burley campus and other Victorian providers of Agriculture-related higher education The University of Melbourne - Burnley The University of Melbourne - Dookie College Federation University Australia La Trobe University Marcus Oldham College Monash University Northern Melbourne Institute of TAFE RMIT University Swinburne University of Technology Victoria University The University of Melbourne - Parkville Fields delivered at Dookie College Agriculture 4% 13% 0% 39% 0% 0% 8% 0% 0% 0% 34% Environmental Science 3% 1% 0% 0% 0% 6% 1% 9% 0% 0% 62% Viticulture and Winemaking 0% 50% 0% 0% 0% 0% 44% 0% 0% 0% 6% Agribusiness 0% 1% 0% 0% 75% 1% 0% 0% 0% 0% 24% Horticulture 66% 1% 0% 0% 0% 0% 0% 0% 0% 0% 25% Other Food Science 0% 1% 19% 0% 0% 0% 0% 63% 0% 1% 16% Notes: The percentage figures in each row represent the share of EFTSLs in the field delivered by each provider, meaning that rows, but not columns, sum to approximately 100% (allowing for rounding errors). The colours in the cells provide visual representation of the degree to which the market in each of the fields is concentrated at an individual provider. Source: ACIL Allen Consulting REVIEW OF VICTORIAN AGRICULTURE COLLEGES 47

49 4 Utilisation at Victoria s agricultural colleges Consistent among stakeholders consulted were the views that agricultural colleges no longer hold the important place in the agricultural training sector as the significant and distinctive providers of education and training that they once were. Despite this, stakeholders reported that there does remains a place for residential agricultural training among the broad suite of training delivery models. More important was the view that training needs to be flexible and adaptive, needs to be delivered in a way that meets the diverse needs of sub-sectors of the agricultural industry, and that keeps up with rapidly-evolving industry best practice. Within that broadly consistent message was a series of more nuanced views: Demand for agricultural education, and supply of skilled workers to the industry, is in a general pattern of decline. This is consistent across the school, VET and higher education sectors, and reflects the data presented in Chapters 2 and 3, and broader views from the literature and media (see, for example, Barr 2014) about the poor perception that young people have of potential careers in agriculture. The current VET market settings have led to a growth in agile providers with small asset bases. While this model of delivery enables rapid response to industry and employer training requirements, there are concerns about the quality of delivery of some of these providers, consistent with views about non-agricultural VET delivery in Victoria. Where agricultural colleges operate, any associated farm should be backed by a strong commercial or operational business that is viable in its own right. Training subsidies are insufficient to support the maintenance or operation of significant agricultural infrastructure. Institutions that receive the strongest support from industry and employers tend to be associated with a clear mission; they tend to be disciplined about defining and pursuing their market, and the industry and business partners to support them in that mission. While maintaining a clear mission, institutions must be flexible and adaptive in meeting changing industry and employer needs and training requirements. 4.1 Past, present and future models of agricultural training delivery The traditional model of agricultural training delivery was on state-owned farms, with significant physical assets and a farm that may or may not have been commercially viable in its own right. States have, generally speaking, have divested agricultural training assets over the last few decades. In Victoria, there has recently been a move to activity-based training subsidies rather than block funding of training organisations. In consultations with stakeholders of agricultural industry and the agricultural training sector, the nature of delivery required by the agriculture sector fell into three broad perspectives: REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 48

50 1. The residential model is the best way to deliver training A C I L A L L E N C O N S U L T I N G While a minority view, this is supported to some extent by the data, which show that students are prepared to travel significant distances for residential-based agricultural training, if it is of sufficient qualify. Those holding this perspective consider the car-boot model of training where providers hold little infrastructure and instead rely on on-farm assets to delivery training is generally of low quality, and that students benefit from the learning process and the social and networking aspects of residential training. 2. A mixture of training models is best, to suit different requirements Those holding this perspective noted that the residential model is important for school leavers, particularly those not from a farm, for the reasons outlined above. School age students and employed workers, however, require more flexibility, which may involve a combination of off-campus, on-the-job delivery, and blocks of training at a residential campus. While off-campus delivery can leverage existing campus facilities during blocks of training, this is not sufficient to significantly increase campus utilisation. 3. Work-based delivery is the only model that makes sense Proponents of the model of flexible, work-based delivery held the view that existing assets should not dictate the model of training delivery, but rather that the optimal model of training delivery, as best suits the needs of industry and employers, should dictate the assets required. Assets can be minimised, because farmers are willing to provide access to their facilities for training, with the added benefit of being generally more up-to-date with processes and technology. Fixed colleges, bearing the significant costs and inertia of their physical assets, cannot compete with responsive and flexible private RTOs. In reality, different models of agricultural training continue to be delivered. The residential, asset intensive model presents cost challenges for providers, as ageing facilities add to the challenge of maintaining and sustaining assets, and infrastructure replacement requirements as infrastructure ages or is technologically superseded is expensive. In addition, there may be duplication of infrastructure across the state, both historic and recently added. Trade Training Centres in schools (see Box 3) and recent investments in TAFE may contribute to this duplication. While most colleges in Victoria, Australia and overseas aim to operate their farms on a commercial basis, this can lead to tensions between training needs and the needs of a commercial operation, and does not necessarily solve the problem of having poorly utilised yet expensive physical infrastructure. REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 49

51 Box 3 Trade Training Centres in Victoria Victoria has 24 approved school-based Trade Training Centres, receiving funding in excess of $40 million. Of these, five target agriculture or horticulture, at least in part. A detailed analysis has not been undertaken of the extent to which the locations of these Trade Training Centres overlap with existing infrastructure at TAFE, private providers or agricultural colleges, however there could be scope for collaboration / co-location to maximise utilisation of agricultural training facilities. Source: Australian Government Department of Education, Trade Training Centres in Schools Program Key Finding 13 There are a variety of views on the optimal future models of agricultural education and training. Overall, however, the consensus is that a mixture of models with the flexibility to adapt to industry and employer needs is best. This includes limited residential-based provision, as well as farm-based training that is both unencumbered by the high overheads of a large asset base, and benefiting from access to a geographically dispersed network of working farms and classrooms. The primary niche for a campus-based/residential style delivery model appears to be for catering to the needs of young school leavers without prior on-farm experience, or industryled short courses as part of a work-based qualification pathway. 4.2 Assessment of utilisation levels at Victoria s agricultural colleges As noted previously, there is a separate review of Glenormiston College assets underway. This section makes reference to Glenormiston, but does not go into significant detail. The headline question in the terms of reference for this review is how to increase the generally low levels of utilisation of Victoria s agricultural colleges, to increase the viability and sustainability of the colleges. There are no consistent data available to investigate asset utilisation: metrics such as enrolments per land area, enrolments per total asset value, or percentage utilised are not available. Even if the data were available, comparisons between the colleges, and between colleges and other agricultural education and training institutions, would be difficult as the models of delivery and operations are diverse. Table 9 shows a broad comparison of the number of enrolments at the agricultural colleges and the approximate land area on which the colleges are located. As discussed previously, where colleges are located on significant farming assets, these farms must be commercially viable operations in their own right, as training subsidies are not sufficient to cross-subsidise operation and maintenance of farming assets. Longerenong College and Dookie College are located on farms of significant scale relative to Glenormiston and McMillan Warragul, though even these are significantly smaller than the majority of commercial farms now in operation. Nonetheless, Longerenong and Dookie are able to operate the farms commercially. The two comparator institutions listed in the table represent very different models of operation: REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 50

52 RIST leases space from a DEPI site near Hamilton, utilising DEPI on-site facilities where appropriate, but making heavy use of on-farm facilities in the region. RIST has very low infrastructure holdings and associated overheads, allowing efficient and ultimately flexible delivery of training. Taratahi, in the North Island of New Zealand, is at the opposite end of the spectrum. Taratahi owns significant assets, having built land holdings to over 7,500 Ha from the original bequest of 300 Ha. Taratahi runs these assets as a commercial operation, with training fitting in around commercial priorities. The on-site infrastructure buildings, amenities and equipment at the agricultural colleges is significant. Buildings are generally ageing and in need of renewal, and utilisation is poor. Dookie, Longerenong and Gilbert Chandler all have residential facilities on site, adequate for student accommodation, but dated. These residential facilities generally have very low utilisation. Despite efforts to attract visitors for alternate uses either training or non-training related these do not have a significant impact on overall levels of utilisation. The overall decline in residential-based training activity means that the residential assets of the Colleges remain unlikely to be highly utilised although, as noted previously, there remains a place in the sector for some level of residential agricultural training. Table 9 Enrolments and land area of the agricultural colleges and two comparator examples Institution Level of education provided Number of qualifications (total) Number of agricultural enrolments (2012) Approximate land area Longerenong College VET ,070 Ha McMillan Warragul VET Ha Glenormiston VET Ha Dookie College HE 10 85* 2,477 Ha Taratahi (NZ) VET 12 1,100 7,500 Ha RIST VET Leased space from DEPI Note: * VET enrolments are not strictly comparable to HE enrolments, as VET courses are often shorter, and one VET enrolment often represents less than one student. Source: ACIL Allen Consulting Key Finding 14 There are no statistics available on the utilisation rates for each of the Victorian agricultural campuses. However, a high-level analysis of the ratio of enrolments to land area aligns with site visits and anecdotal reports suggest that: Longerenong is well utilised, but has residential and training facilities that are vacant at least part of the time. McMillan has agricultural facilities that are not well utilised, agri-science laboratories that are not used, and recently commissioned horticultural facilities that are not in full operation. Gilbert Chandler is poorly utilised, with training facilities, factory facilities and residential facilities all at low levels of utilisation. Dookie has very low utilisation of training spaces and residential facilities. Glenormiston is currently vacant but had very low utilisation prior to its closure REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 51

53 4.3 Current approaches to maximising utilisation There are a variety of approaches being taken to maximise use of college facilities across the five campuses that were visited as part of this review. Alternate uses generally fall into three categories: 1. Training related uses 2. Agricultural related uses 3. Other unrelated uses Most alternate uses appear to have emerged on an ad hoc basis or as a result of historical decisions, some taken many years ago. Only one college appeared to have an active longterm strategy to diversify asset use through development and sub-lease arrangements. Training related uses Non-agricultural training was undertaken to varying degrees at a number of the agricultural colleges. McMillan was the most notable in this regard with agriculture related courses now only comprising a small minority of enrolments. Longerenong also delivered various other non-agricultural courses on campus including non-accredited courses such as driver education, as well as block release components of some of WorkCo s engineering apprenticeships, all related to the needs of WorkCo s core industries. Most of the campuses with dormitory facilities catered to some degree to school excursions and camps. Most of these were strictly on a room and board basis but in a small number of cases the college itself would also be engaged in training delivery to visiting school students. A model of expanding the training-related uses of the agricultural colleges that has been investigated in the past, but is not currently employed, is the leasing of facilities to other education and training providers. Dookie College, for example, has in the past leased some of its facilities to TAFE institutes. Agriculture related uses On-campus agriculture related uses primarily comprised research activities and/or the colocation with government agencies, primarily DEPI. These partnership arrangements tended to be the result of decisions dating back many decades, rather than strategic partnerships arising in recent times. Of note is the second longest continuously running wheat trial in the world, involving fixed cropping cycles on specific plots since 1917 that continues at Longerenong, in partnership with DEPI. The most notable agriculture-related use that has developed in recent times is the establishment of the Bayer CropScience facility at Longerenong. This facility is a significant achievement for Longerenong given that it is Bayer s only such facility in the southern hemisphere and that a wide variety of Australian locations were on the firm s shortlist. While the sub-lease arrangement does not necessarily result in large revenues for Longerenong, the college is able to benefit from a deliberate collaborative arrangement which will see students interacting with researchers. Other unrelated uses Weddings, conferences and community events were cited as the most common unrelated uses at the Victorian agricultural colleges. In most cases, the age of the building stock, in REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 52

54 particular the condition and style of residential facilities, was the primary barrier to achieving better occupancy rates through such uses. Key Finding 15 Over the years, Victorian agricultural colleges have considered and attempted a range of approaches to increasing utilisation of their respective assets. Some of the beneficial partnerships are the result of standing historical arrangements, and there are few examples of more recent successes with the notable exception of the Bayer CropScience research facility at Longerenong. 4.4 Range of potential alternate uses Building on the range of alternate uses identified in the previous section as well as the alternate uses either considered or implemented at other agricultural colleges in Australia and New Zealand, a range of potential alternate uses is summarised in Figure 18. The following sections discuss these potential alternate uses in further detail. The ultimate matching of potential alternate uses to actual campus is a task that is far more involved that this current review allows. It would have to take into account the location, size, condition and special features of each campus on a case-by-case basis. In addition, other factors such as current tenures, planning overlays, heritage listings, and any maintenance requirements or immediate upgrades requirements and associated costs would need to be considered. It is important that any such alternative uses are identified on merit, are commercially viable, and are openly discussed with the local communities. Figure 18 Range of potential alternate uses Source: ACIL Allen Consulting Shared facilities or third party access for training Both Victorian and interstate providers have sought to achieve a higher degree of asset utilisation by sharing existing facilities with other education and training providers to varying degrees. This includes VET providers sharing their facilities with higher education providers, higher education providers sharing their facilities with VET providers, and both VET and higher education providers working with schools. REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 53

55 The extent of collaboration could range from basic subletting arrangement to a more integrated partnership which could include the sharing of facilities, equipment, and even staff. The establishment of formal pathways between VET and higher education providers operating on the same campus could prove to be mutually beneficial. Third party access for training is a variation of the shared facilities model whereby any other provider is able to gain access to infrastructure for training delivery on a fee for service basis. This model has been recently rolled out across the whole of Queensland s TAFE institute infrastructure network to improve the utilisation of TAFE campuses; TAFE assets across Queensland are now administered by an independent body called the Queensland Training Assets Management Authority. The relative costs and benefits of this model are yet to be seen as it is the very early stages of implementation. Co-location with government agencies To date, it would appear that the most appropriate government agency to collocate with an agricultural college is likely to be DEPI. The CFA is another organisation which is currently collocates with agricultural colleges. The fact that few other agencies are collocated with the agricultural college is no surprise as the location of the campus (and other requirements, such as the commercial / cost-sharing arrangement) is unlikely to be wholly aligned to the needs of other government agencies. Agricultural research centres College partnerships with research organisations (or organisations that undertake research) have clear benefits. There is a natural synergy between research and education and training; this is particularly true at the postgraduate level by can also be beneficial in VET. The benefits are magnified when research output provides direct spillovers and/or inputs into education and training delivery however, there are few examples of this. One example was identified by RIST, whereby DEPI research on the same site had translated into a training program for the whole of lifecycle management of sheep Lifetime Ewe Management program. The AgriBio research joint venture program between LaTrobe and DEPI is an example from the higher education sector. It is noted that neither of these examples are from one of the six agricultural College campuses. Some stakeholders suggested that applied research that used to be carried out on commercial farms could now move to college campuses because the colleges can offer a more controlled environment. Specialist industry training centre Some industries such as the dairy sector have successfully established preferred provider arrangements with a small number of education and training providers. Some Victorian agricultural colleges are reportedly pursuing opportunities to become centres of excellence in training and research for particular subsectors. Agricultural high schools Few stakeholders were able to comment on the potential for an agricultural high school to be successfully established in Victoria. There were many examples of Victorian agricultural colleges partnering with schools to provide accommodation for school camps, deliver VET in schools, and engage students to provide them with information on career options in the agriculture sector. However, there appears to be little familiarity with the model of a dedicated agricultural high school in Victoria. REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 54

56 Victoria established a number of agricultural high schools in the early 1900s but these only operated as agricultural high schools for a short period of time before becoming district high schools. At present, two schools are currently specialising in agriculture under the Government s specialisation program, namely Kaniva College and Murrayville Community College (Education and Training Committee 2012). The fact that interstate successes are frequently attributed to the long history of their institutions, it is possible that without a long and established history in the local agricultural community a green-field agricultural high school will not be able to build and sustain the level of enrolments necessary to make it viable. The most recent case of a high school being established with a focus on the local agricultural industry is the Dalby State High School which took over the previous agricultural college at Dalby. The success of this endeavour remains to be seen. As discussed in section 2.3, a school-based agriculture program, funded by the State Government and delivered by the Victorian Farmers Federation, is attempting to reverse the steady decline in school-based agriculture education participation. The first instance of this the Timboon Agriculture Project, near Colac is reportedly achieving significant results in engaging school students in agriculture, by delivering standard curriculum, but relating it to the agricultural context important to the community. Community engagement and enthusiasm for the project has been critical in its success, and the VFF is currently implementing it in a number of schools around the state. Table 10 Farrer Memorial Agricultural High School Hurlstone Agricultural High School James Ruse Agricultural High School Yanco Agricultural High School Examples of agricultural high schools around Australia School Region Year established Calala, Provincial NSW Glenfield, Metropolitan NSW Carlingford, Metropolitan NSW Yanco, Provincial NSW Catholic Agricultural College Bindoon, Provincial WA Western Australian College of Agriculture Source: ACIL Allen Consulting Cunerdin, Provincial WA Denmark, Provincial WA Number of enrolments (2012) VET in Schools enrolments (2012) Senior Secondary Certificates (2012) Harvey, Provincial WA Morawa, Remote WA Narrogin, Provincial WA REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 55

57 Key Finding 16 If Government wanted to pursue the possible establishment of an agricultural high school, an extensive study of the commercial viability of a greenfield agricultural high school should be undertaken. This should consider the most appropriate location for the school (rather than being driven by the location of the existing underutilised agricultural college assets), hold extensive discussions with existing residential high schools and schools delivery substantial agricultural VET in Schools. Discussions should also be held with Dalby High School in Queensland, as an example of an agricultural high school established on the site of an agricultural college. There appears to be no strong case for the Government to use the existence of the underutilised agricultural colleges as a driver for establishment of a dedicated agricultural high school. Such establishment would bear significant risk, in that there currently appears little demand for such an offering in Victoria. Government should however consider alternatives means of raising the profile of agriculture in schools, and increasing the pipeline of students from school to the agriculture sector, such as the Timboon Agricultural Project, and its expansion to a number of other schools, as discussed above. Coordination of delivery Some stakeholders suggest that historical fragmentation of the Victorian College of Agriculture and Horticulture and the subsequent introduction of competition has been a barrier to a coordinated response and has resulted in inefficient agricultural education and training delivery and maintenance of duplication in relevant infrastructure. A small number of stakeholders have proposed that a more planned approach at the state or even national level would lead to a consolidation of enrolments at a smaller number of institutions, which would in turn provide more sustainable levels of utilisation across a consolidated number of campuses. These stakeholders suggest that in the current environment, these are increased opportunities for collaboration and shared infrastructure given the increased expectations for flexible and online delivery, and in light of the common challenge of falling enrolments. It is probably true that there are gains to be made from increased specialisation and a degree of market aggregation the same is often said across the breadth of higher education providers and RTOs alike. However, the potential for such partnerships being deemed to be anti-competitive behaviour is yet to be fully explored. The Council on Private Higher Education for example suggested in its submission to the Competition Policy Review that peak associations like the Australian Council of Deans of Agriculture might be considered to be cartels and be deemed anti-competitive. Key Finding 17 The current state of low utilisation at Victoria s agricultural colleges is the result of a number of the factors, with no single factor identified as dominant in the decline in utilisation over time. At various points in the past, consolidation of delivery has been identified as a possible remedy, however whether such coordination between providers in the current market environment might be deemed uncompetitive is as yet unclear. REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 56

58 4.5 Other agricultural college models A C I L A L L E N C O N S U L T I N G Queensland Agricultural Training Colleges The Queensland Agricultural Training Colleges (QATC, formerly Australian Agricultural College Corporation s (AACC)) purpose is to support the sustainability of rural and related industries and communities by improving the knowledge and skills of its existing and future workforce. Agricultural training services are offered through two main divisions: residential training delivered at Longreach and Emerald (44% of total delivery); and industry training delivered at various locations throughout Queensland (56% of total delivery). In November 2012, an external review of AACC operations and governance arrangements was undertaken and the result of this review was a recommendation to amend the corporate structure and undertake reform to operational performance across the organisation: Dalby College was transferred to Education Queensland to be operated as an agriculturally-focused state high school Surplus campus, farm and additional training facilities in the Burdekin provided opportunity to upgrade the Longreach and Emerald Colleges QATC now exists as a Statutory Authority, with a Governing Board that reports to the Minister for Agriculture, Fisheries and Forestry Tocal Tocal Agricultural Centre is operated by NSW Department of Primary Industries. Its mission is to increase the capacity of primary industries and communities to drive continuing economic growth in regional NSW, by providing education and training resources for: young people who wish to pursue a career on the land adults who wish to improve their competencies to work in primary industries, whether on a full time or part time basis primary industries organisations and businesses people to adapt to change within primary industries and the broader community (ACIL Allen Consulting, 2013). ACIL Allen Consulting conducted a strategic review of Tocal College in 2013 in response to the Pratley Review of Agricultural Education in NSW. ACIL Allen s review focused on the rationale for operation and the competitive position of the College within agricultural education in NSW. It also looked at how the College could take an active role in identifying and meeting current and emerging agricultural workforce needs. The review recommendations were at a high level: that Tocal s role within DPI should be clarified and its governance reviewed, that it should developed sophisticated market and internal pricing analytic capability, and that a monitoring and evaluation framework should be developed and implemented for better understanding pricing of services and product offerings. Taratahi and Telford Taratahi and Telford are successful agricultural colleges in New Zealand, operating nationally and at a large scale. Both colleges combine residential with significant workbased delivery components. One (Telford) a division of Lincoln University, and the other (Taratahi) operated from a large commercial farming enterprise. REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 57

59 Both Colleges success is due in large part to their position within a broader operation the large commercial scale farm in the case of Taratahi, and the broader university operation in the case of Telford and operate institutions that retain their place as significant and distinctive agricultural colleges. Key Finding 18 Low utilisation and related issues are common across Australia. There are lessons that can be learnt from the approaches to dealing with low utilisation of assets at interstate and international institutions, including: Governance changes to improve college management and responsiveness to demand (in the case of QATC, Qld and Tocal College, NSW) Disposal of campuses or handing underutilised assets back to government (QATC, Qld and Muresk, WA) Conversion of campuses in to schools (in the case of Dalby College, previously part of QATC, Qld) Repositioning / rebranding the institution to pursue a more focused mission (in the case of QATC, Qld and Tocal, NSW) Cross-subsidisation of residential facilities by other training (Telford, NZ) Increase in the scale farming activities to commercial scale (Taratahi, NZ) In the case of the Agricultural Colleges in New Zealand, their ongoing success is also in large part due to their continuing place as a significant and distinctive provider of agricultural education and training. 4.6 Potential barriers to the implementation of alternate uses There are a range of possible reasons for why some of the alternate uses, partnerships and training models discussed above may not have been explored or implemented by the Victorian Agricultural Colleges. The review methodology did not explicitly seek to identify or document such barriers as this was beyond the terms of reference. Nonetheless various barriers were identified in the perspectives raised by stakeholders in the agricultural education and training sector and in other reviews. In addition to the broader issues identified by the Parliamentary Inquiry which are inhibiting demand for training, the key barriers that may inhibit the implementation of alternate uses, prospective partnerships and innovative training models fall into the following categories: 1. Organisational mission: the mission of agricultural colleges may necessarily constrain what the organisation is willing or able to pursue, particularly when there are possible activities that would appear to be removed from the organisation s core business. 2. Organisational capability: providers of education and training may face difficulties in adapting to changing market conditions due to gaps in their organisational capability. 3. Governance arrangements: governance changes may be required to enable and promote more commercially oriented, independent and streamlined operations. 4. Funding frameworks: access finance for capital works and other up front investments may limit the ability of the agricultural colleges to develop viable alternate and concurrent uses. 5. Lease conditions and other constraints: lease conditions may restrict the ability of Victoria s agricultural colleges to repurpose or sublease parts of their campuses for alternate uses. REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 58

60 This review has not investigated the extent to which such barriers have unduly restricted the ability of Victoria s agricultural colleges to pursue or implement alternative uses at the individual campus level. It is likely that many barriers may be entirely appropriate and need not be perceived negatively; for example, the constraints on an organisation s mission and vision should necessarily guide the ongoing investments and activities of an organisation, even if this means that its campuses are not fully utilised. Further investigation of barriers is therefore warranted to determine the extent of such barriers and whether there is a case for government intervention. REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 59

61 5 Recommendations for the future 5.1 The role of Victoria s agricultural colleges in the contemporary education and training market The agricultural colleges have experience significant structural change As the Parliamentary Inquiry formally documented, over the last 30 years the system of Victoria s agricultural colleges has undergone significant structural changes. There are few reliable documents charting the full history of Victoria s agricultural colleges. In short, these colleges were grouped under the entity and control of the Victorian College of Agriculture and Horticulture (VCAH) in the 1980s. The VCAH subsequently merged with The University of Melbourne in 1997.In 2005, the University of Melbourne decided to discontinue its relationship with four of the campuses, maintaining only Burnley and Dookie. This led to Longerenong, Glenormiston and McMillan being transferred to the VET sector and the Gilbert Chandler College of Dairy Technology being transferred to the Department of Primary Industries (DPI) (Education and Training Committee 2012). While there is a view that a return to the agricultural colleges as distinctive and significant providers of agricultural education and training as they were under the original VCAH model would benefit the agriculture industry in Victoria, the analysis in the preceding chapters, highlights that the industry is now supported by a marketplace of numerous and diverse higher education and VET providers. The diversification of agricultural education and training providers in Victoria A significant proportion of the expansion in the number of providers across VET has been a direct result of the introduction of demand driven funding in 2010 and associated VET reforms since. Other funding policies such as the National Workforce Development Fund may have also created opportunities for other RTOs to enter or expand. The introduction of demand driven funding in higher education has also allowed universities to more independently pursue delivery in particular areas. There are also examples of industry-driven expansion of providers, such as the NCDEA s partnership with GOTAFE as its VET provider of choice in Victoria. As the analysis in Chapter 2 demonstrates, there is now an active marketplace of agricultural education and training providers in Victoria, with courses being offered by: 4 Victoria-based universities and at least one-interstate university All 14 TAFE institutes to varying degrees, including significant delivery by at least 4 regional TAFE institutes More than 50 private VET providers and at least one private non-university higher education provider REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 60

62 As a result, the industry now has increased access to a wider range of courses, providers and delivery models across the state; the competitive demand-driven funding models in both VET and higher education should make the education and training sector more responsive to the requirements and expectations of employers and students alike. In some respects, the Parliamentary Inquiry arrived at the same conclusion when it found that the quality of agricultural education in Victoria is generally high (Education and Training Committee 2012). The decline in agricultural education and training enrolments The increase in the number of providers has not been matched by a corresponding increase in enrolments, particularly in higher education. Given the importance of the agricultural workforce, skills shortages at all levels are an ongoing concern. Agriculture training in Victoria is facing challenges similar to those interstate and internationally. Production is seeing increasing capital and technological intensity, leading to reductions in the base demand for labour and the need for changed models of training delivery. There is a clear need to improve participation generally, promote a positive industry image, improve awareness, and improve participation in schools to counteract the declining interest in careers in the sector. The enrolments in VET have grown since the introduction of the VTG, although there is evidence to suggest that some of that growth has in the form of potentially inappropriate RPL activity. In real terms, growth has merely returned enrolments to 2001 levels following a period of steady decline. Notwithstanding persistent skills shortages, the review did not find evidence of any significant unmet demand for education and training specific to the agriculture colleges. Industry did report some lost opportunities to attract and develop careers in agriculture, and some variability in training quality were also raised, but these would need a separate study (building on the Parliamentary Inquiry) to quantify and qualify the extent of these issues. The weak demand for agricultural education and training is a challenge for all providers to contend with. However, unlike some industries where weak demand has been compounded by reductions in supply of education and training, the agriculture sector appears to have the benefit of a strong provider marketplace. It would appear that the collapse of supply in either VET or higher education is unlikely in the short to medium term. Under-utilised infrastructure The decline of the residential model of agricultural education and training as well as direct investment by government in other VET and higher education infrastructure has meant that the agriculture colleges generally have under-utilised infrastructure. The residual role of the residential model of agricultural training As discussed in Chapter 4, the under-utilisation of residential facilities, particularly at Glenormiston and Dookie is a direct result of the shift in residential training from being the dominant mode of delivery to the niche mode of delivery for a small segment of the market (namely school leavers looking for an immersive formative experience). It is important to note that outside of the residential model, campuses cannot afford to be too remotely located as students will be expected to come primarily from the immediate catchment area. The decline of the residential model is therefore more pronounced for those sites that are geographically isolated. The withdrawal of South West Institute of TAFE from REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 61

63 the Glenormiston campus would appear be at least partly the result of the decline in demand for residential training. Direct investment by government in VET and higher education infrastructure As outlined in chapter 4, government has continued to invest in regional and agricultural training infrastructure. Notable examples of such investment include: Federal funding for CSU s centre in Wangaratta, co-located with Goulburn Ovens Institute of TAFE Victorian Government investment in the AgriBio research joint venture between LaTrobe and DEPI Federal funding for Trade Training Centres that may cater specifically to agriculture VET in schools. From an asset management perspective, any future assessment of the adequacy of education and training infrastructure for the agriculture sector needs to be considered not from just the perspective of the six agricultural college campuses, but rather take into account the full range of tertiary education infrastructure that is available. Similar and concurrent challenges for agricultural colleges nationwide The experience with agricultural colleges across Australia as discussed in Chapter 4 highlights the fact that the issues being faced by Victoria are not unique. Agricultural colleges across Australia have had to contend with falling enrolments, increased competition and offering, changing preferences in delivery models, and duplication of infrastructure. Some colleges like Tocal in New South Wales have sought to clarify their governance arrangements, and develop the capacity to analyse and develop more competitive market and pricing strategies. Similarly the Queensland Agricultural Training Colleges has been: given a more independent and localised governance structure; and, over time, better aligned with the agriculture, fisheries and forestry portfolio; and allowed to consolidate its number of campuses (noting that the current Government intends to bring the properties that have been sold back into operation). Notwithstanding a long and distinguished history of agricultural education and training in Western Australia since 1926, responsibility for the Muresk Institute of Agriculture has been transferred by Curtin University back to the State Government. The position of Victoria s agricultural colleges as distinctive or significant provider for industry The Parliamentary Inquiry found strong support for Victoria s agricultural colleges, particularly amongst the ranks of its distinguished alumni. It is clear to the Committee that Victoria s agricultural colleges are held in high regard by the community, particularly the alumni. The Committee toured the facilities at the Dookie campus, Glenormiston College and Longerenong College and believes they provide a truly unique agricultural training experience. Education and Training Committee, 2012 However, the significance of Victoria s agricultural colleges in the contemporary education and training market is no longer reflected in their market share measures of enrolments show that for the qualifications considered relevant to agricultural education and training the agriculture colleges account for: REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 62

64 Less than 10 per cent of VET enrolments Less than 9 per cent of higher education enrolments. Even if enrolments in agriculture were to increase significantly, there is no reason to expect the agricultural colleges to capture a disproportionate share of that growth. Students and industry have access to the marketplace of diverse range of additional suppliers of agricultural education and training. In some cases, it would be appropriate to include interstate provision in the assessment of supply. In summary, the notion of an agricultural college as a distinctive and significant (or even dominant) provider of agricultural education and training is an anachronism. While it is true that the colleges are generally characterised by significant and underutilised assets, devising public policy to from the stand point of sustaining infrastructure that is in excess to what the market requires would be ineffectual and counter-productive. The infrastructure portfolio for agricultural education and training has to be ultimately aligned to the needs of industry and employers and the expectations of students, whilst being commercially viable. Recommendation 1 That the Government note that whilst the Victorian agricultural colleges once served as a critical supplier of skills and knowledge to the agriculture workforce, they are no longer distinctive and significant providers of agricultural education and training. That, as such, the starting point for any analysis of demand and supply of agricultural education and training should be the broader agricultural education and training sector, rather than select individual providers. Some colleges like Gilbert Chandler and Burnley can be excluded on the grounds that there is little to no training in agricultural production being delivered. While they may not have been agricultural colleges historically, other VET and higher education providers with significant agricultural education and training delivery should be included in future analysis of education and training provision. 5.2 The rationale for government intervention The need for a clear and compelling rationale Establishing a clear and strong rationale for government intervention is critical for two reasons. First, the Government has established a market for VET and higher education within which there is an expectation that all providers compete on a level playing field; any action that may benefit one provider (such as an agricultural college) over others must have a compelling basis. Second, it is important to recognise that the Victorian agricultural colleges themselves are either independent entities in their own right, or leased by independent entities. Longerenong and McMillan are owned by the Minister for Higher Education and Skills but operated by WorkCo and Community College Gippsland respectively under longterm leases. Dookie and Burnley are properties for which the University of Melbourne is wholly responsible. This is generally a sound arrangement as it allows the colleges to pursue what is best for their communities and markets given the assets and expertise available. However, it also means that the levers available to government to intervene are necessarily limited, and the threshold for any form of intervention or action is much higher. REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 63

65 Is there a market failure? A C I L A L L E N C O N S U L T I N G The general issues associated with education and training for the agriculture industry are beyond the scope of this project, but were well documented by the Parliamentary Inquiry. In order to enhance the quality of agricultural education and training, these included: the need to ensure that education and training courses meet the requirements of students and the agriculture sector (recommendations 11, 28, 29, 30 and 31) the need to ensure that there is a sufficient number of qualified and technically experienced that teachers (recommendations 35 and 36) the need to support the delivery of agricultural VET (recommendation 23) Consistent with other studies, all these issues point to the wider workforce supply challenges being faced by the agriculture industry, rather than failures of the education and training market per se. Specific to the issue of the infrastructure at the agricultural colleges, the Parliamentary Inquiry makes a prima facie assumption that there is some market failure that warrants government intervention in its recommendations (recommendations 33 and 34). However, the report of the Parliamentary Inquiry does not make an explicit argument for these recommendations on market failure grounds. The fact that the agricultural colleges are generally under-utilised (in some parts severely so) is not necessarily evidence of market failure. While there are public goods and various positive spillovers that may flow from the presence of such assets in the community, these are ancillary to the core purpose of agricultural education and training. There may be high search and coordination costs associated with securing alternative uses on these campuses, but the examples of Longerenong and McMillan demonstrate that diversification and appropriate partnerships need not be deterred. Similarly GOTAFE working with Dairy Australia and the NCDEA have shown that successful industry partnerships can be forged. While there is no doubt that there are lower levels of utilisation at many of the agricultural colleges in Victoria, the starting assumption that the Government should therefore act to remedy this situation does not appear to be a valid one. In many ways, the consolidation of training delivery and the identification of excess infrastructure is a direct and intended outcome of many of the reforms to the Victorian VET system. The closure of TAFE campuses in Prahran, Lilydale, and Greensborough for example, have already gone down this path. A clear market failure would be the unintended collapse in either VET or higher education provision over time. As discussed above, weak demand for education and training has not resulted in risks to supply and the agriculture sector appears to have the benefit of a strong provider marketplace, with some providers reporting plans for growth. The unanticipated collapse of supply in either VET or higher education therefore appears unlikely in the short to medium term. Pre-empting possible market failure in the future As with any managed market, it is appropriate for the Government to monitor developments in the market for agricultural VET and higher education in Victoria. Given the importance of the agriculture sector, the state has a particular interest in ensuring that supply of agricultural education and training is viable across the regions. From an asset REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 64

66 management perspective, government will need to ensure that any consolidation of tertiary infrastructure over time does not compromise the availability and quality of provision. In particular, it will need to manage the risk that ad hoc consolidation leads to a campus configuration that is highly suboptimal and counter to efficient and effective delivery. Government should therefore continue to monitor through established processes the agricultural education training sector for emerging market failures, and investigate the appropriate action to address market failures if and when they emerge. As part of this, future intent and usage plans should be developed, if not already, by the operators of Government-owned facilities at Longerenong and McMillan Warragul. Given the long term significance of Dookie, the Government could initiate a senior-level discussion with the University of Melbourne regarding its future. Equally, there is a role for government to ensure that any further investment in education and training infrastructure in Victoria s region is well coordinated and ultimately enhances education and training delivery. Recommendation 2 That Government note that the key requirement identified is to increase the attractiveness of careers in agriculture, and that this cannot be addressed through a supply side training response. As such there does not appear to be a strong case for government intervention to address the low levels of utilisation or to re-establish education and training delivery at any of the Victorian agricultural campuses at this time. Further, that Government should not intervene to address low levels of asset utilisation unless there is a clear and compelling industry policy rationale, so as to ensure that all providers compete on a level playing field, and that the independence and autonomy of the current college operators is maintained. That Government should also continue to monitor through established processes the agricultural education training sector for emerging market failures, and investigate the appropriate action to address market failures if and when they emerge. This includes requiring that future intent and usage plans be developed (or communicated, if already developed) by the operators of Government-owned facilities at Longerenong and McMillan. 5.3 The role for government and industry What should government do with unused agricultural training campuses? Where required, government should assist in removing or addressing any barriers to increasing the utilisation of the agricultural college assets, or equally to the orderly closure or disposal of unwanted assets. In the event that lower levels of utilisation lead to the closure of an agricultural college campus as was recently the case with Glenormiston the Government as the land-owner will need to consider the most appropriate course of action. Chapter 4 identifies some of the alternative uses that could be promoted. The emphasis should be to prioritise those uses most closely related to the historical purpose of agricultural education and training, which may then be extended to other agricultural uses or education and training for a wider range of sectors. In the event that there is a dramatic decline in enrolments at the remaining agricultural colleges, it would appear unlikely that government would be in a position to re-establish training delivery in agriculture (or any other industry for that matter) at those campuses. Failing that, the Government may consider whether there is support for retaining these campuses, or parts thereof, as generic community assets. REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 65

67 The approach to identifying the attributes of the campus and matching those attributes against the shortlist of potential alternative uses would need to be well-structured and inclusive. In addition to the basic considerations of land area, location, and building stock other factors such as current tenures, planning overlays, heritage listings, and any maintenance requirements/immediate upgrades and associated costs would need to be considered. The exploration of alternative uses should include the canvassing of interest amongst government agencies, as well as outright disposal of the property as a whole or in separable parts. The Government may seek to test the level of market interest groups some sort of public tender process. It is important that any such alternative uses are identified on merit, are commercially viable, and are openly discussed with the local communities. In doing so the Government should consider the extent to which other proximate similar or duplicative assets such as TAFE or university campuses and TTCs might be taken into account. Taking a portfolio approach to training assets rather than a campus by campus approach will more likely ensure that similar issues of duplication and subsequent underutilisation do not emerge in the future. The current process with the Glenormiston campus provides a useful and directly relevant test case for how such a process might be conducted, however there may be lessons from the experiences at Lilydale, Greensborough, Gippsland and other regional campus that may have been vacated by the TAFE or university sector Recommendation 3 That a key role of Government is to remove or address any barriers, as identified, to increasing utilisation of the agricultural college assets, or equally to the orderly closure or disposal of these assets. That, in the event of the closure of an agricultural college campus, the Government take a wellstructured and inclusive approach to identifying all the attributes of the site and the full range of commercially viable alternative uses, including possible disposal of the asset. This should include consideration of proximate TAFE campuses, university campuses and TTCs. That Government take the opportunity to develop this structured approach through the current process with the Glenormiston campus, while also drawing on the experience with other TAFE or university campuses that have been vacated. How can government maximise utilisation should it wish to do so? Notwithstanding the conclusion of this review that there is currently no clear or compelling market failure rationale for government to intervene to address the low levels of utilisation at any of the Victorian agricultural campuses (see Recommendation 2), there may be other financial, historical, social or industry support reasons to warrant such action. In these cases, the agricultural colleges should not be approached as campuses defined by their historical role as agricultural colleges, but as six independent campuses that now operate in the wider VET and higher education markets. Longerenong The Longerenong is generally well utilised through both a residential and other models of agricultural training, as well as other diversified delivery of accredited and non-accredited training that is aligned to WorkCo s employment and youth focussed approach. The college has successfully secured sub-lease arrangements with the CFA and Bayer CropScience and has a long-term strategic plan in place to maximise the use of its campus. Longerenong REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 66

68 should be allowed to continue with these arrangements according to the terms of its lease agreement. Dookie and Burnley The Burnley and Dookie campuses are currently the responsibility of the University of Melbourne. The Dookie campus appears to have low levels of utilisation, but there is insufficient information regarding Burnley as this review has not been able to consult with that campus. The University of Melbourne continues to fund and maintain both Dookie and Burnley as appropriate. The university has both the responsibility and the capability to pursue a range of strategies to improve utilisation and defray costs, without any discernible need for government intervention in the short term. However, given the long term significance of Dookie in particular, the Government could initiate a senior-level discussion with the University regarding its future. Gilbert Chandler The Gilbert Chandler campus is now operated by GOTAFE as one of six NCDEA campuses in Victoria. While utilisation appears low, GOTAFE and the NCDEA are part of an industryled partnership arrangement that is highly regarded by stakeholders in industry. While Gilbert Chandler is co-located with the NCDEA and Dairy Innovation Australia Limited, there may be opportunities to improve utilisation by strengthening links between research, education and the dairy industry. McMillan McMillan has become a diversified campus with a wide range of VET delivery by Community College Gippsland. Some of its former dairy activities now being provided by the GOTAFE/NCDEA partnership facilities at Warragul. While its focus on agriculture has declined, there does appear to be potential to reaffirm and expand into some areas of agriculture delivery, particularly horticulture with recent Trade Training Centre investments in the area. Glenormiston Glenormiston College has been vacated by South West Institute of TAFE. The call for expressions of interest did not attract any response from the other TAFE institutes and it is now the subject of a separate review which is canvassing options for ongoing use. Given its remote location and the high concentration of tertiary infrastructure in the Warrnambool area, that review should carefully consider whether it has any future prospect as an education and training facility. The need for strong industry involvement It is clear from the consultations with local stakeholders and Victoria and interstate providers that a key success factor for the future utilisation of agricultural campuses will be the level of active industry engagement and involvement. While not necessarily sufficient, this suggest that a high level of industry engagement and involvement is necessary will be required in order to increase the utilisation of the Victoria agricultural campuses, Examples in some agricultural subsectors like dairy and grains demonstrate that coordinated efforts on the part of industry to collaborate with the education and training sector can yield sustainable and mutually beneficial outcomes. REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 67

69 The broader issues of whether current agriculture education and training overall is fit-forpurpose, and whether the current agriculture colleges can be part of future growth of education and training in the sector will depend on strong engagement from industry, which would in turn benefit from coordination with DEPI. Industry should recognise and take advantage of the fact that there is excess supply capacity in agricultural education and training and take the opportunity to secure the training that it requires through innovative partnership arrangements. In doing so those peak organisations that lead such endeavours will need to work with their constituents to build a culture of workforce development and thereby ensure that whatever supply capacity secured is taken up by corresponding demand from firms and individuals. An important first step is the establishment of dialogue between relevant industry bodies, employers, regional communities and tertiary education and training providers, informed by government industry and regional development objectives. The focus should be on increasing the attractiveness of careers in agriculture, and should include identifying appropriate training pathways, successful models of training and how they can be applied more broadly, and the most appropriate roles of the various stakeholders. These processes should be well aligned with the activities of other stakeholders and government agencies in response to the wide range of recommendations by the Parliamentary Inquiry into Agricultural Education and Training. Recommendation 4 That the Government release this review and communicate its findings with the agricultural colleges. That the Government facilitate a structured dialogue led by DEECD between DEPI, Regional Development Victoria, industry associations, agricultural colleges and other significant providers of agricultural education and training to share best practice and learnings on what models of delivery are required by industry, employers and students, what models are currently working, and what models might work best in the future. The focus of this dialogue should be on increasing the attractiveness of careers in agriculture, and should include identifying appropriate training pathways, successful models of training and how they can be applied more broadly, and the most appropriate roles of the various stakeholders. REVIEW OF VICTORIAN AGRICULTURAL COLLEGES 68

70 Appendix A Framework for analysis Figure A1 below presents a conceptual framework for analysing sustainable delivery of agricultural education and training and utilisation of assets. This framework has been successfully applied by ACIL Allen Consulting in the analysis of thin markets and delivery options for a range of other industry sectors in Victoria and interstate, and has been adapted to address the more specific focus of this project on the sustainable provision of agricultural education and training through the five agricultural college campuses in Victoria. As indicated in this figure, the sustainable provision of agriculture education and training depends on a wide range of factors including: 1. The level of student enrolments, which is in turn a function of the level of industry support and student demand (noting that these issues were investigated at length by the Inquiry into Agriculture Education and Training). 2. The income from education and training delivery which flows from difference between revenue received and the costs of delivery. 3. The range of possible alternate uses and activities once the opportunities for sustainable and viable education and training delivery has been exhausted, based on the allocation of the excess available infrastructure amongst potential or prospective partners. The framework provides a structure for analysing and understanding the drivers of recent and projected demand for skills and qualifications by industry, and demand for education and training by students. The framework is also focused on identifying options for alternative future models of agricultural education and training. The framework has been adapted to focus on the potential to maximise the benefits and utilisation of those colleges to the industry, local business and the broader community by making available excess infrastructure to alternate uses and activities. REVIEW OF VICTORIAN AGRICULTURAL COLLEGES A-1

71 Figure A1 Conceptual framework for sustainable provision of agricultural education and training Source: ACIL Allen Consulting REVIEW OF VICTORIAN AGRICULTURAL COLLEGES A-2