A new report released today (24 September) has highlighted growing pressures in the food and farming sector due to shortages of available labour, with more than half of Britain’s dairy farmers surveyed (56%) saying it is harder than ever to recruit, whilst 86 per cent of farmers with vacancies say that they have had very few or no applicants with the right skills.
The survey, carried out by the dairy cooperative Arla Foods amongst its farmer owners, has found that on average farmers are paying staff 27 per cent more than they were at the end of 2019, before the pandemic and the end of free movement of people from the EU.
The pressure this is placing on the cost of food is clear. One-in-twelve farmers (8.5%) report that they are responding to these pressures by cutting production. Looking forward, 16 per cent of them say that without changes they will consider leaving farming altogether.
Arla noted that these developments are putting the UK’s food security under pressure.
“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,” Bas Padberg, managing director at Arla Foods, commented.
“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.”
Across the wider supply chain, the biggest challenges are attracting qualified people with the correct skillsets for the modern manufacturing environment, as well as attracting more women and younger people into the industry as a career choice. The advancement of technology finding workers with expertise and experience of automation expertise is also a growing issue.
Arla Foods has set out a list of asks for the government, including to reduce administration on farmers by simplifying its own paperwork, to help promote the food and farming sector, support skills development and up-to-date portable qualifications, and accelerate investments in technology to underpin automation on farm.
Arla has also written to the environment secretary and the prime minister to invite them to back its proposals.
“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,” Fran Ball, vice president of production at Arla, said.
Arla said it has already launched a clear strategy across its supply chain to attract, retain, develop and create more positive gender representation however, support is needed to help attract and promote food manufacturing as a career choice amongst a more diverse population.
Arla is now asking the government to expedite welcome changes to the Apprenticeship Levy to enable money to be used more easily for upskilling and training colleagues. Reforms to careers advice in schools and to teaching more generally is needed to encourage pupils to consider working in manufacturing, engineering and food, it added.
“For farmers across the country, this has been a problem for a number of years, and it is getting worse,” David Christensen, Arla farmer, commented.
“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.”
With just three months left in the complete ban on sale of disposable vapes, the Association of Convenience Stores, Chartered Trading Standards Institute and the Local Government Association are calling on retailers who sell vape products to prepare, be aware and ensure that they comply with the ban.
The ban on disposable vaping products is coming into force on June 1.
The ban will affect all products that are intended for one use, typically providing around 600-650 puffs in a single device. The only products that will be legal for sale from June 1st must be both rechargeable and refillable, with a maximum tank size of 10ml.
ACS has produced comprehensive guidance for retailers, backed by Buckinghamshire and Surrey Trading Standards, which outlines the steps that retailers need to take to comply with the ban, as well as their responsibilities when it comes to the rest of the vaping category, including on age related sales, recycling, and advertising.
In the guide, ACS advises retailers to sell through any existing stock of single use vapes before June 1st to avoid possible commercial losses and enforcement action.
Any retailers that have stock left over from June 1 must remove it from the shop floor and store it away from customers, clearly labelled as not for sale.
Association of Convenience Stores chief executive James Lowman said, “The introduction of the disposable vape ban is one of the biggest regulatory changes for retailers in recent memory, with businesses needing to think carefully about how they manage their range of vaping products in the coming months to ensure that they’re ready for June 1.
"We urge all retailers to utilise our guide and get in touch if there are products that they’re not sure about.”
Kate Pike, Lead Officer for Vaping and Tobacco at the Chartered Trading Standards Institute (CTSI), said, "We welcome the introduction of the Single Use Vape ban as a positive step toward reducing environmental harm and addressing the growing appeal of vaping among young people.
"We encourage businesses to take proactive steps now to prepare for the 1st of June. We expect full compliance from that date and look forward to working together with retailers to ensure a smooth transition.
"Our priority is supporting responsible businesses, but we will take necessary action against non-compliance where required."
Cllr David Fothergill, Chairman of the Local Government Association’s Community Wellbeing Board, said, “The ban on disposable vapes is an important step in reducing waste and protecting young people. With over five million thrown away each week, they have become a major challenge for councils to manage.
“With the ban coming into force on June 1st, we encourage retailers to prepare now to ensure a smooth transition. Councils and Trading Standards teams will work with businesses to support compliance, but retailers must take responsibility for reviewing their stock and only selling legal products after the deadline.”
Wholesalers have begun communicating the dates from which they will stop selling disposable vaping products to retailers, with major wholesalers committed to compliance for all of their customers.
Federation of Wholesale Distributors chief executive James Bielby said, “Wholesalers are working with their retail customers to help sell through disposable vapes ahead of the ban coming into force on June 1.
"Retailers won’t be able to purchase non-compliant stock from wholesalers in good time ahead of the ban, to ensure they won’t be left with products they can’t sell in June. ACS’s guidance is invaluable for any retailers concerned about what they need to do in order to be compliant.”
In response to recent reports that rolling tobacco is now more valuable per gram than some precious metals such as silver, Imperial Brands is encouraging retailers to ask their local MP to rethink excessive levels of excise applied to tobacco products to avoid an upsurge in crime and abuse against retailers.
Last November’s budget applied a Recommended Price Index (RPI) + 12 per cent excise rate on hand rolling tobacco products in the UK.
The UK now has the highest excise duty in Europe – six times higher than in Spain, and five times higher than in Germany.
Andrew Malm, UK Market Manager for Imperial Brands, said, “We now have a situation whereby hand rolling tobacco is more valuable per gram than silver, making local retailers and convenience store owners in the UK as much of a target to thieves as jewellery stores.
“Not only does this taxation drive UK consumer spending elsewhere – as, for example, a 30g pouch of rolling tobacco is now four times more expensive in the UK compared to Spain – but it also contributes to the issue of retail crime and illicit trade.
“This excessive excise duty will further incentivise organised criminal gangs to produce hand rolling tobacco illegally and sell the product through illicit channels here in the UK. Illicit trade is already a significant issue, and one which ultimately impacts on retailers and their revenue.
“As a responsible manufacturer, we will continue to engage with the Government to re-assess the current excise duty on these products as it poses a significant threat to retailers’ livelihoods and contributes to an already growing illicit market.
"We would also encourage retailers to reach out to their local MPs and councillors, ensuring that the issues their businesses are facing are highlighted and heard by relevant public officials.”
Malm's plea comes weeks after a report stated that the cost of tobacco has turned convenience stores into targets for organised crime, as it is now worth more than silver per gram.
Successive tax hikes on rolling tobacco means that a 50g pouch of Amber Leaf now costs 87p a gram – compared to 83p for silver.
It has encouraged gangs to target not only stores but also delivery vans, adding to the wave of crime hitting the retail sector.
Experts say that criminals regard tobacco theft as a low-risk, high-reward crime because the products are ‘concealable, removable and available’.
As part of Chancellor Rachel Reeves’s plan to boost the public finances, the Treasury is considering doubling the tax on tobacco – which the industry argues would further fan the black market.
The Treasury is estimated to have lost more than £50 billion in tax revenue on tobacco to the black market since 2000.
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Post Office and DPD expand partnership with international delivery services
The Post Office and DPD have on Thursday announced an expansion of their partnership with international delivery services.
Following a successful trial at 300 post offices, customers wanting to send parcels abroad can now choose from ‘DPD Classic’, ‘DPD Direct Lite’ and ‘DPD Air Classic & Air Express’ services. The international delivery services are now available at 4,100 post offices across the UK.
The Post Office and DPD partnership began in 2021 and already includes ‘Click and Collect’ and Next Day delivery services within the UK.
This announcement follows a virtual Postmaster Conference which took place on 4 March, organised and hosted by postmasters. The Post Office outlined it remained focused on expanding Mails and Parcels services to more branches, ensuring customers have access to the best-in-market, safe, and convenient options for shipping, pickup, and drop-off—both online and in-branch.
“As part of delivering our ‘New Deal for Postmasters’ it’s vital that we strengthen postmasters’ offer to customers. Expanding our already successful partnership with DPD is a demonstration of this,” Neil Brocklehurst, Post Office acting chief executive, said.
“In today’s fast-paced world, customers and businesses expect international parcels to reach their destination in a matter of days and having DPD international delivery services available provides them with the options to meet their needs.”
Elaine Kerr, DPD UK chief executive, commented: “We really value our relationship with the Post Office and introducing international services is the logical next step, with online and buy-in-branch now well established. We have the largest delivery network in Europe and deliver to over 200 destinations worldwide.
“Our approach is designed to make it easy and affordable to find the right international service with free tracking included and duty and customs made as straightforward as possible.”
A four-week trial has been running since February to get postmasters feedback on guides and other self-help tools to support them in selling and promoting DPD international services in branch.
“It’s already been a great experience,” Phil Ballantyne, peer support postmaster from Appleby, and who was part of the trial said.
“I’ve been able to save customers £3, they are getting a better service, and the branch is receiving even better remuneration compared to alternative services.”
A Southowram retailer has helped 100 children from the local primary school enjoy a hot breakfast through his retail connections with Parfetts, setting new benchmark of how a convenience store can impact its community.
Jeevan Chatha, who runs the Go Local Extra store on Law Lane in Southowram, made the donation as part of his broader support of local causes.
Since buying the store in May 2024, Chatha has established it as a key part of the local community. He provided 100 Quaker Oat So Simple Porridge pots to Withinfields Primary School in Southowram to support the school's breakfast club.
Chatha, who attended Withinfields with his older brother and sister, was instrumental in helping to secure the breakfast pots through his retail connections with Parfetts.
He said the store plans to support the school as much as possible in the future. He also recently secured a pallet of Lucozade, which he provided to the local junior football team, Beacon Rangers FC, which plays some of its games at the school’s playing fields.
Working closely with wholesaler Parfetts, Chatha has established a very busy store that is already an integral part of the community it serves. He is on first-name terms with the school's parents and pupils.
Chatha commented, “Being part of the local community is incredibly important to me, and I aim for our store to be seen as more than just a convenience store.
"We aim to serve the community by providing the kind of store that meets all their needs while fostering community spirit by supporting vital local initiatives, such as the school's breakfast club.
“Having attended the primary school myself, I'm grateful for the opportunity to give back and maintain my connection. The school has numerous ongoing projects, and I'm eager to get involved with these as well.
"The support from Parfetts and the Go Local Extra team has been invaluable, as they encourage active community engagement.”
Chatha opened his first Go Local store last year after his father ran an independent convenience store nearby in the village for over 25 years. He worked in the store before acquiring the old village library building and converting it into a Go Local Extra store.
Michael Shanahan, regional account manager - Midland, PepsiCo UK & Ireland, said, “I was very happy to be involved with this initiative not only from a brand perspective but also supporting the local school and the community with the breakfast club, with Quaker being a very strong brand and supports healthy breakfasts which keeps you fuller, for longer.”
Parfetts is an employee-owned business, and its employees play a significant role in the company’s success and its retailers.
Guy Swindell, joint managing director at Parfetts, said, “We've collaborated closely with Jeevan and his team, who have transformed their new store into a thriving success and a vital part of the community.
"As a business, it's crucial for us to connect with our customers on multiple levels and support the causes that matter to them. With Jeevan leading the way, I am confident that this store will achieve even greater success and play an increasingly significant role in positively impacting the local community.”
A leading retailers' body has raised concern that Employment Rights Bill risks punishing responsible businesses rather than focusing on unscrupulous employers.
According to amendments tabled by the government to its flagship employment legislation, all British workers, including nearly a million agency workers, will be entitled to a contract which reflects the hours they regularly work.
Government said the amendments will offer increased security for working people to receive reasonable notice of shifts and proportionate pay when shifts are cancelled, curtailed or moved at short notice – whilst retaining the necessary flexibility for employers in how they manage their workforces.
Responding to the tabled amendments on the Employment Rights Bill, Helen Dickinson, Chief Executive at the British Retail Consortium, said, “The BRC supports the Government’s goal to ensure improved employment practices.
"We want a level playing field for responsible businesses, which means tackling unscrupulous employers and we support measures to crack down on those who exploit their workforce.
“While Government has been listening to the concerns of businesses, the latest amendments show that they have much further to go if they wish to reach a place which protects employees while supporting investment in jobs.
"We welcome the changes made around collective consultation, but further amendments are urgently needed, particularly in relation to guaranteed hours and trade unions.
“The focus of the Employment Rights Bill should be on unscrupulous employers who undermine confidence in the labour market, instead the current regulations risk punishing responsible businesses who provide employment.
"We will continue to work closely with Government on the future of the Bill to ensure a progressive approach that avoids raising the costs of employment for those already doing things well and limiting the flexibility for staff, which is so important in retail.
"This pragmatism and collaboration also needs to continue beyond the passage of the Bill, as the implementation detail of various areas is still to be worked through.”
Calling the bill "biggest upgrade to workers’ rights in a generation", Deputy Prime Minister Angela Rayner said that for too long millions of workers have been forced to face insecure, low paid and irregular work, while the economy is blighted by low growth and low productivity.
"We have been working closely with businesses and workers to progress this landmark bill and deliver our Plan for Change - unleashing growth and making work pay for everyone."