The UK is on the verge of dairy shortages as a crippling lack of workers forces farmers to slash production, the country's biggest milk and butter maker has warned.
Arla Foods, the company behind Lurpak butter and Cravendale milk, also predicted that dairy prices will surge even higher with grocery bills already rising at the fastest pace in 13 years.
Ash Amirahmadi, UK managing director at Arla, told The Telegraph that British milk production is already down 3% in 2022 after more than seven years of growth.
He added: “If that 3% gets to 5%, we know that will lead to shortages, in terms of [meaning] we can’t meet the demand that’s there.”
Farmers are being squeezed by soaring fuel, animal feed and fertiliser costs while worker shortages are also hitting the industry.
Mr Amirahmadi said “we’re on the edge” of dairy shortages and warned there is “more inflation to come”.
He added that the company – a co-operative owned by 12,000 farmers, around 2,500 of them in the UK – is in talks with ministers to obtain feed, fertiliser and fuel.
Mr Amirahmadi said: “The work with Government is less about inflation, but it's more about making sure that the product keeps flowing."
Milk and butter prices have soared by more than 10% in the last 12 months. Lurpak is being security tagged in Asda to prevent theft, and the cost of a 500g tub of butter has hit £6 in some shops.
Low fat milk prices are up 19%, whole milk has jumped 15% and the cost of butter has increased 13%, according to the Office for National Statistics.
A Government spokesman said: “Labour shortages are affecting countries around the world. As announced in the Government Food Strategy, plan to commission an independent review into labour shortages in the coming weeks.”
The spokesman urged the dairy industry to “make long term investments in the UK’s domestic workforce instead of relying on labour from abroad.”