The UK's largest producer of milk and butter has issued a warning that the UK is "on the edge" of a dairy shortage amidst the rising cost of butter.
Arla Foods, the owner of Lurpak and Cravendale Milk, has warned that a chronic shortage of workers has forced dairy farmers to cut back on production. The dairy brand has said that the shortfall has had a knock-on effect on dairy prices, which are set to soar further amidst the cost of living.
The warning is the latest blow for shoppers who were left outraged over the cost of a tub of Lurpak butter in their local supermarket, with some finding a 1kg tub priced at over £9.
Arla Foods UK managing director Ash Amirahmadi has said that British dairy production has already been slashed to just 3 percent this year.
He commented: "If 3 percent gets to 5 percent, we know that will lead to shortages, in terms of [meaning] we can’t meet the demand that’s there. We’re on the edge of dairy shortages and there is more inflation to come."
A shortage of workers is not the only factor impacting the dairy industry, as farmers have also been hit with rising costs for fuel, animal feed and fertiliser. Prices have increased as a knock-on effect from the Russian invasion of Ukraine.
Ash Amirahmadi has said that Arla Foods, a co-operative owned by more than 12,00 farmers, is now in discussions with the UK government to obtain feed, fertiliser and fuel. He added: "The work with the government is less about inflation, but it’s more about making sure that the product keeps flowing."
Arla Foods warning comes after Arla Foods explained to shoppers that the recent price hikes on a tub of butter was to ensure dairy farmers received a "fair deal."
A spokesperson for the beloved Danish brand commented: "We understand that recent inflation in food price is hitting many households really hard right now.
Unfortunately, our farmers are facing a similar situation with prices for the feed, fertiliser and fuel they need to produce milk, all rising significantly in recent months."
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