The UK food and drink sector is calling for the introduction of a 12-month ‘Covid-19 Recovery Visa’ to help alleviate the workforce shortages that are causing disruption across the supply chain and driving up prices for consumers.
New immigration rules and the lingering effects of the pandemic has led to empty shelves in some supermarkets and restaurants removing key lines from their menus in recent weeks.
A new report, spearheaded by the National Famers’ Union and signed by a dozen industry groups, was sent to government ministers at the end of last week highlighting the difficultly the sector is now having in recruiting key workers. The study found that there is an average vacancy rate of 13%, with an estimated 500,000 vacancies across food and drink businesses.
The report sets out ways the government could help the food and drink industry overcome the current workforce challenges.
These include the introduction of a 12-month Covid-19 Recovery Visa, which could help firms throughout the supply chain to recruit overseas staff for critical roles, such as HGV drivers, as a short-term response to labour shortages.
The industry organisations that backed the study are also calling on the government to commit to a permanent Seasonal Worker Scheme for UK fruit and vegetable pickers, and to launch an urgent review by the Migration Advisory Committee (MAC) on the impact of ending free movement on the food & farming sector, in the same way it is doing for adult social care.
“For the past 18 months food and farming businesses have been working hard to keep shelves and fridges full of nutritious and affordable food, but as this report demonstrates, businesses throughout the supply chain in a wide variety of roles are really feeling the impacts of the workforce shortages,” said NFU Vice President Tom Bradshaw.
“At the very start of the supply chain, farm businesses are feeling the pressure. For example, horticulture farms are struggling to find the workforce to pick and pack the nation’s fruit and veg, with some labour providers seeing a 34% shortfall in recruitment.
“Farm businesses have done all they can to recruit staff domestically, but even increasingly competitive wages have had little impact because the labour pool is so limited – instead only adding to growing production costs.
“It is simplistic to argue that the end of furlough will see many more people meeting this shortfall, but furloughed workers are concentrated in urban areas and not where many agri-food roles are located. A solution to this crisis will need the right people with the right skills and training available in rural areas where many roles are based.
“A short term Covid Recovery Visa, alongside a permanent Seasonal Workers Scheme, would be an effective and, frankly, vital route to help the pressing needs of the industry today. It would also give us time to invest in the skills and recruitment of our domestic workforce, helping to provide long-term stability so we can recruit the people we need to continue to deliver quality, nutritious and affordable food for the nation.”
The Food and Drink Federation’s Chief Executive, Ian Wright, added: “This really authoritative report sets out in stark detail the labour and skills shortages currently facing the food supply chain. Drawing on a wide range of evidence the report illustrates the breadth and scale of the issues confronting the industry. The report makes it crystal clear that today’s labour shortages are caused by a multitude of structural factors beyond those created by Covid-19 and the end of the Brexit transition period.
“The recommendations set out within this report, including the Covid Recovery Visa and measures to support domestic training and skills development, the adoption of new technologies and career promotion, provide industry and the Government with highly practical solutions. They will ensure that the food supply chain continues to thrive with a strong and skilled workforce. However, it is also evident that without fast action the labour challenges will continue. If they do, we can expect unwelcome consequences such as reduced choice and availability for consumers, increased prices, and reduced growth across the domestic food chain.”
The government has so far rejected calls from retail and logistics companies to temporarily ease post-Brexit immigration rules, saying that employers should make long-term investments in the UK domestic workforce instead of relying on labour from abroad.
However, The Times newspaper reported at the weekend that the government is considering bringing forward a review of its Shortage of Occupation list to tackle the issue of the HGV driver shortage.
NAM Implications:
- Taking the above disruption into account…
- …coupled with probable Meat-agreements with the US…
- …are we faced with a two-tier food supply system.
- One for those that can afford to pay more for quality/continuity…
- …and one for those that cannot.
- Suppliers and retailers (and consumers) had better factor these inevitabilities into their business strategies…
- …or watch while a rival shows how.
