Arla, a major dairy company, highlights critical labour shortages affecting UK food supply.
- A survey reveals 1 in 12 dairy farmers reduced output due to recruitment challenges.
- 16% of farmers consider leaving the sector if labour issues persist.
- The industry faces wage inflation driven by staff shortages and competition for labour.
- Arla calls for government intervention to support industry stability and automation.
Dairy industry leader Arla has issued a stark warning about the grave impact of labour shortages on the UK food supply chain, underscoring a critical issue faced by dairy farmers nationwide. A survey conducted by Arla with 472 dairy farmers revealed that this shortage has forced one in twelve farmers to scale back their operations. In addition, 16% of the respondents indicated they might exit the industry if the labour market conditions do not improve, according to the Financial Times.
Arla’s managing director, Bas Padberg, emphasised the ongoing challenges in the labour market, which he describes as significantly affecting their ability to maintain food production levels. He stated, “Our farmers have told us for some time that they are facing real challenges with the state of the labour market.” Without intervention and support, the capacity to continue supplying food to UK homes is at risk.
Wage inflation has been identified as a major consequence of these shortages. As farming businesses struggle to recruit and retain staff, competition has driven up wages, exacerbating the financial strain on the industry. A decline in the number of dairy farmers—down 5.8% from October 2023 to April 2024 as reported by the Agriculture and Horticulture Development Board—reflects the pressures exerted by these workforce challenges.
Several factors have contributed to the scarcity of agricultural labour, as noted by Padberg. The end of free movement, disruptions from the COVID-19 pandemic, and a dwindling interest among young people in food manufacturing careers are significant contributors. In response, Arla has urged governmental efforts to promote the sector as a viable career path, enhance skills development initiatives, and increase investment in automation technologies.
Looking forward, Arla cautions that consumers should prepare for potential dairy shortages in 2024 due to anticipated volatile market conditions linked to geopolitical tensions and persistent uncertainties. The company is collaborating with the Department for Work and Pensions to boost awareness of opportunities within the food industry through job centres and career services.
The UK dairy sector faces significant challenges that require urgent attention and strategic intervention to ensure long-term food security.
