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The UK’s largest dairy supplier has warned that labour shortages are undermining the nation’s meals safety as wage inflation and the tip of freedom of motion squeeze manufacturing and drive farmers to scale back their herds.
One in 12 of the 472 dairy farmers surveyed by Danish dairy co-operative Arla mentioned that they had minimize output in response to recruitment pressures.
In response to the research, launched on Monday, 16 per cent of the farmers mentioned they’d think about leaving the sector altogether except the state of affairs improved.
“Our farmers have advised us for a while that they’re dealing with actual challenges with the state of the labour market,” mentioned Bas Padberg, Arla’s UK managing director. “If we would like our farmers to proceed to place meals on the desk in tens of millions of properties across the nation they need assistance.”
Padberg mentioned employees shortages had been driving wage inflation within the sector as farm companies competed for employees.
Farmers had been paying employees nearly a 3rd extra this yr than on the finish of 2019, earlier than the Covid-19 pandemic and the termination of unrestricted motion between the UK and EU following Brexit, the analysis discovered.
Padberg mentioned ending free motion was “a part of the dynamic” however that the pandemic had additionally “modified the labour market”. “We haven’t seen the total results of that,” he added, noting individuals had been more and more choosing careers that enable them to work remotely or flexibly.
He added that the business was struggling to persuade younger individuals to decide on meals manufacturing as a profession selection, and to draw certified candidates with the talents wanted for more and more automated manufacturing work.
On common it now took between three and 6 months to search out an engineer for Arla’s factories, he mentioned.
Arla referred to as on the federal government to assist promote careers in meals and farming, help abilities improvement and increase funding in automation to boost effectivity and shut the labour shortfall.
The co-operative is at present working with the Division for Work and Pensions to advertise the meals sector in jobcentres and thru profession advisory providers. Padberg mentioned reform {of professional} recommendation given in colleges was additionally wanted.
Arla additionally referred to as on ministers to expedite plans to tear up the apprenticeship levy and launch a brand new “development and abilities levy”, permitting firms to make use of a proportion of their contributions to the scheme to fund coaching by means of different routes.
The variety of UK dairy farmers has fallen steadily over the previous 5 years, however the drop between final autumn and spring this yr was bigger than common.
The variety of dairy farmers within the business fell 5.8 per cent between October 2023 and April 2024, from 7,500 to 7,130, in response to the Agriculture and Horticulture Growth Board, an advisory board to British farmers.
Milk manufacturing over an analogous interval, nevertheless, fell simply 0.5 per cent, or 33mn litres, suggesting cows had been being distributed to different dairy farms, elevating the output of these farms, mentioned Susie Stannard, AHDB analyst.
“The difficult climate situations this yr have been an element for a lot of, teamed with falling milk costs on the time but additionally elevated regulatory calls for, notably environmental calls for that require vital investments,” mentioned Stannard.
