The UK’s food security is under threat due to labour shortages, warns Arla.
- A survey reveals one in twelve dairy farmers have lowered their output.
- Sixteen percent of farmers might leave the industry if conditions remain unchanged.
- Labour market shifts, including wage inflation and reduced workforce, exacerbate challenges.
- Efforts are being made to enhance the industry’s appeal to young workers.
The United Kingdom is facing a significant threat to its food supply chain due to ongoing labour shortages, as highlighted by Arla, a major player in the dairy sector. This concern is reflective of an industry-wide challenge that is jeopardising the ability of dairy farmers to maintain their herd sizes and production levels. Farmers are increasingly unable to sustain operations in face of these staffing challenges.
According to a recent survey conducted by Arla involving 472 dairy farmers, it was found that one in twelve participants had already reduced their milk output owing to recruitment pressures. Additionally, 16% of the farmers surveyed indicated a potential exit from the dairy sector, should the situation not improve, underscoring the gravity of the labour crisis.
Arla’s managing director, Bas Padberg, emphasised the ongoing difficulties faced by farmers, stating that real challenges exist within the current labour market. He remarked, “If we want our farmers to continue to put food on the table in millions of homes around the country they need help.” These remarks underscore the critical need for intervention to support the agricultural workforce.
The labour shortage issue is compounded by several factors, including wage inflation driven by the need for farming businesses to compete for a dwindling pool of workers. The industry has seen a 5.8% decline in the number of dairy farmers from October 2023 to April 2024, according to the Agriculture and Horticulture Development Board. Contributing factors include the ending of free movement across borders, changes induced by the pandemic, and a declining interest among young people in pursuing careers in the food production sector.
In response to these challenges, the dairy cooperative is advocating for enhanced government support to make careers in food production more attractive to young people, as well as increasing investments in skills development and automation. Arla is collaborating with the Department for Work and Pensions to promote opportunities within the industry through job centres and career advisory services. Further complicating the landscape is a warning from Arla in August about potential rises in dairy prices and supply shortages in 2024 due to persistent market volatility driven by geopolitical tensions.
The UK’s dairy sector faces mounting pressure from labour shortages, necessitating significant intervention to preserve its food security.
