Dairy giant Arla has warned that labour shortages are wearing away the UK’s food security as farmers are forced to limit their herds.

According to a survey by Arla of 472 dairy farmers, one in 12 said they had reduced output as a result of pressures surrounding recruitment and 16% said they would consider exiting the sector if the situation did not improve, the Financial Times reported.

Arla managing director Bas Padberg told the publication: “Our farmers have told us for some time that they are facing real challenges with the state of the labour market.

“If we want our farmers to continue to put food on the table in millions of homes around the country they need help.”

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He explained that wage inflation in the food and farming sector was being driven by staff shortages as farming businesses have to compete for staff.

According to the Agriculture and Horticulture Development Board, the amount of dairy farmers in the industry dropped 5.8% from October 2023 to April 2024.

Padberg noted some of the reasons for the shortages include ending free movement, the pandemic having “changed the labour market”, and a lack of young people choosing to go down the food manufacturing career path.

As a result, the dairy co-operative has urged the government to help encourage careers in the industry, support skills development and increase investment in automation.

Arla is also co-operating with the Department for Work and Pensions to promote the food industry in job centres and via career advisory services.

It comes as in August, Arla warned consumers to brace for higher dairy prices and potential shortages in 2024.

The milk manufacturer cautioned that looking ahead to the second half of 2024, it “anticipates volatile market conditions,” driven by geopolitical tension and continued uncertainties.