Labour Shortages Threaten UK Food Security and Dairy Industry Sustainability, Arla Foods Reports

These labour challenges have had serious implications for the dairy sector. Since the end of 2019, farmer wages have risen by an average of 27%, reflecting increased costs due to the pandemic and the post-Brexit end of free movement of labour from the EU. Despite higher pay, recruitment remains difficult, leading 8.5% of farmers to reduce production, and 10.6% to cut herd sizes.

Most alarming is that 16% of dairy farmers are considering leaving the industry entirely due to these persistent labour shortages, a sharp rise from 12% in 2023. This trend threatens to exacerbate the UK’s food security challenges.

Call for Government Action

Arla Foods is urging the UK Government to step in and offer greater support to the dairy industry. Managing Director Bas Padberg highlighted the critical need for collaboration between the government and the industry to attract new talent and ensure that dairy farmers have access to the skills and technology necessary for productivity.

The company has called for the simplification of administrative processes for farmers, more promotion of the food and farming sectors, and funding for technological advancements to enhance farm automation. Additionally, Arla seeks reforms to the Apprenticeship Levy to enable better access to upskilling opportunities and improvements in career advisory services in schools to encourage more young people to pursue careers in farming.

Industry in Need of Innovation and Inclusion

Fran Ball, Vice President of Production at Arla, emphasized the increasing difficulty in recruiting skilled workers, even as technology advances. While automation offers the potential for increased efficiency, skilled workers remain essential.

Arla also believes that greater effort is needed to attract women and younger workers to the sector, fostering diversity and securing a workforce for the future.

Arla farmer David Christensen echoed these concerns, stressing the importance of promoting the benefits of careers in the food and farming industries. He called on schools, parents, and career advisors to help highlight these opportunities to young people, who are essential to the sector’s future success.

Arla’s report has sparked fresh calls for government and industry cooperation to address labour shortages, with the goal of preserving the UK's food security and ensuring the long-term viability of its dairy industry.

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