Arla Foods Urges Government Support to Address Labour Shortages in UK Dairy Sector

Arla Foods, the UK’s largest dairy cooperative, is calling on the government for urgent assistance as labour shortages drive many dairy farmers to cut their herd sizes and reduce output. According to recent research conducted by Arla, 56% of its farmer members reported that hiring skilled labour has become more difficult than ever, while 86% of those with vacancies said they received few or no applicants with the necessary qualifications.

Labour costs have risen significantly, with average wages increasing by 27% since the Covid-19 pandemic and the end of free movement from the EU. As a result, farmers are increasingly facing operational challenges:

• Output Reduction: 8.5% of farmers have cut output in 2024, compared to 5.5% in 2023.
• Herd Size Reduction: 10.6% have reduced herd sizes, up from 9% in the previous year.
• Industry Exit: Nearly 16% of dairy farmers are now considering leaving the industry, an increase from 12% last year.

Bas Padberg, Managing Director at Arla Foods, emphasized the urgency of the situation: “If we want our farmers to continue to put food on the table in millions of homes around the country, they need help. We’re calling on the government and the industry to work together to bring people into our exciting sector and to give them the skills and equipment they need to be fully productive.” He urged the government to accelerate support for growth and training, noting that current initiatives need to be expanded and expedited.

Addressing the Labour Crisis in Dairy Farming
To combat the shortage of skilled labour, Arla is urging the government to implement several measures, including:

• Reducing Bureaucracy: Simplify paperwork and administrative processes for farmers.
• Promoting the Sector: Launch campaigns that highlight the opportunities within the food and farming industries.
• Supporting Skills Development: Invest in up-to-date, portable qualifications and targeted training programs.
• Accelerating Technological Investment: Facilitate recruitment for positions requiring expertise in automation and modern manufacturing techniques.

Fran Ball, Arla’s Vice President of Production, added: “With advancements in technology and automation, we should be getting more efficient. However, we need the right people with the right skills to ensure our workforce is ready for the future.”

Enhancing the Appeal of Farming Careers
David Christensen, an Arla farmer, emphasized the need to shift perceptions of the farming industry, particularly among young people: “For farmers across the country, this has been a problem for a number of years, and it is getting worse. We need schools, parents, and career advisors to recognize the benefits of working in the food and farming sector and share them with young people. It is people who will deliver a thriving food and farming sector that feeds the nation and contributes to the growth of our economy.”

Despite the vital role of farming in food security and economic growth, a report by the Food Standards Agency last year noted that UK farming is often perceived as low-skilled, poorly paid, and lacking career prospects. Rural locations, long hours, and physical demands further dissuade potential recruits, especially when they can find similar pay in less demanding roles elsewhere.

As labour shortages threaten the future of the UK’s dairy sector, Arla Foods is pressing the government to take decisive action. Without substantial support, the risk of reduced domestic dairy production could jeopardize the UK’s food supply chain and strain food security nationwide.