Britain is on the brink of a dairy shortage as a crippling shortage of workers forces farmers to cut production, the country’s largest milk and butter producer has warned.
Arla Foods, the company behind Lurpak butter and Cravendale milk, also predicted dairy prices will climb even higher as food bills rise at the fastest pace in 13 years.
Ash Amirahmadi, UK managing director at Arla, said UK milk production is already down 3 percent by 2022 after more than seven years of growth.
He added: “If that 3 pc becomes 5 pc, we know it will lead to shortages, in terms of [meaning] we cannot meet the demand there is.”
Farmers are being pressured by rising fuel, feed and fertilizer costs, while the industry is also struggling with staff shortages.
Mr Amirahmadi said “we are on the brink” of dairy shortages and warned that “more inflation will come”.
He added that the company – a cooperative owned by 12,000 farmers, of which about 2,500 are in the UK – is in talks with ministers to source feed, fertilizer and fuel.
Mr Amirahmadi said: “Working with the government is less about inflation, but more about making sure the product keeps flowing.”
Arla faces shortages of farmers, logistics functions such as drivers and skilled workers in his factories.
A survey by the dairy cooperative found that staff shortages have forced about one in ten members to stop or consider milking, and 13 percent to downsize their herd or consider a reduction.
About 61 percent find it more difficult to recruit than in 2019 and 12 percent say they plan to leave farming next year if the situation does not improve.
Arla urged ministers to take action, including creating an interdepartmental strategy to increase the supply of young workers and easing immigration rules for some positions.
A government spokesman said: “Labour shortages affect countries around the world.
“As announced in the government’s food strategy, you plan to have an independent survey of labor shortages conducted in the coming weeks.”
The spokesperson urged the dairy industry to “invest long-term in the UK’s domestic workforce rather than relying on labor from abroad”.
He said: “We are working with industry to make UK workers aware of the opportunities in these sectors.”
Rising costs and labor shortages are contributing to the rise in dairy prices and broader food cost inflation, which has reached a 13-year high of 8.5%.
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