Food security and affordability across the UK are being threatened by labour shortages in the agriculture industry, according to new data from Arla Foods.

A survey conducted by the UK’s largest dairy company, involving 472 suppliers, revealed that over 56% struggle to recruit farm labour, while 86% of farmers reported receiving few or no applicants with the necessary skills to fill vacancies.

The data also showed that British dairy farmers are now paying their staff 27% more on average compared to the period before the end of 2019, following the challenges brought on by the pandemic and the labour shortages caused by the close of free movement from the EU.

The impact of these challenges is clear, with 8.5% of farmers reportedly cutting production in response to labour shortages, and 10.6% of those surveyed forced to reduce their herd sizes.

Furthermore, 16% of dairy farmers are considering leaving the industry altogether due to labour shortages, a significant rise from the 12% reported in 2023, which poses additional risks to food security.

Arla Foods' managing director, Bas Padberg, said: “Our farmers have told us for some time that they are facing real challenges with the state of the labour market. This new data bears out their concerns and the potential impact on food prices and food security.

“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 industry to work together to bring people into our exciting sector, and then to give them the skills and equipment they need to be fully productive.

“What Ministers have said already about driving growth and supporting training is positive; we now need to go further and faster.”

Following these findings, Arla Foods is calling for increased support from the Government for the dairy sector, writing to the environment secretary and the Prime Minister to back its proposals.

Arla is urging the government to reduce the administrative burden on farmers by simplifying paperwork, promote the food and farming industry, support skills development, and provide recognised transferable qualifications.

Additionally, Arla Foods is asking for government investment in technology to advance automation on farms.

Vice president of Production at Arla, Fran Ball, added: “The challenges in recruiting suitably skilled people into the food supply chain is becoming increasingly harder. With advancements in technology and automation, we should be getting more efficient, but we still need the right people with the right skills if we want to have a workforce that is fit for the future.”

Arla also underlined the need to make the industry more appealing to younger people and women, to foster diversity and inclusion in the dairy sector.

The company is calling for advanced changes to the apprenticeship levy, enabling greater access to training and upskilling opportunities, as well as reforms to career advisory services in schools to encourage students to consider careers in the sector.

Arla farmer David Christensen commented: “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 careers advisors all to recognise the benefits of working in the food and farming sector and to share them with young people.

“Because in the end it is people who will deliver a thriving food and farming sector that feeds the nation and contributes to the growth of our economy.”