Labour shortages threaten the UK food supply, warns Arla, impacting dairy farmers.
- A significant number of farmers report reduced dairy output caused by staffing issues.
- One-sixth of farmers surveyed are considering leaving the industry.
- Arla highlights wage inflation and competition as key factors exacerbating labour shortages.
- Government intervention is urged to promote food sector careers and support automation.
Labour shortages present a significant challenge to the UK food supply chain, as outlined by Arla, a leading dairy producer. According to a survey conducted by Arla encompassing 472 dairy farmers, these shortages are prompting some farmers to limit their production capabilities. Specifically, one in twelve farmers acknowledged a reduction in their output due to recruitment-related pressures, indicating a severe impact on the dairy sector.
Furthermore, Arla’s survey revealed that 16% of respondents are contemplating exiting the dairy industry altogether if the situation remains unchanged. This potential exodus highlights a critical point of concern for the UK’s future food security, given the vital role of dairy farming in the national supply chain.
Arla’s managing director, Bas Padberg, has openly discussed these issues, noting that the labour market’s current state poses ‘real challenges’ for farmers. He emphasised the urgency of addressing these labour market barriers if farmers are to continue meeting the country’s food demands. The sector is facing increased wage inflation driven by intense competition for a shrinking pool of skilled labour.
The Agriculture and Horticulture Development Board reported a 5.8% decline in the number of dairy farmers between October 2023 and April 2024, further illustrating the precarious position of the industry. Padberg identified several factors contributing to this workforce shortage, including the end of free movement within the EU, lasting changes from the pandemic on the labour market, and a waning interest among younger generations in pursuing careers in food manufacturing.
In response to these challenges, Arla is advocating for governmental support in several key areas. These include encouraging careers within the food sector, enhancing skill development initiatives, and increasing investment in automation technologies to streamline operations. Collaboratively, Arla has engaged with the Department for Work and Pensions to raise awareness of the food industry through job centres and career advisory services.
Consumers have been forewarned by Arla regarding the prospect of elevated dairy prices and possible shortages throughout 2024. The dairy manufacturer anticipates market volatility spurred by geopolitical tensions and persisting uncertainties, which could further impact supplies.
The ongoing labour shortages, combined with broader economic and geopolitical factors, pose a serious risk to the stability of the UK’s food supply chain.
