Home Business News UK’s largest dairy producer warns they are unable to get products to supermarkets

UK’s largest dairy producer warns they are unable to get products to supermarkets

by LLB staff reporter
12th Oct 21 3:58 pm

The boss of the largest dairy supplier have said they are facing real “challenges” getting products from their “factories to supermarkets.”

Ash Amirahmadi, managing director of Arla Foods told Sky Big Ideas Live event that due to HGV driver shortages they are unable to deliver milk to hundreds of shops daily.

Amirahmadi said, “Just simply being able to get the product from our factories to supermarkets is a real challenge.

“We are very mechanised when it comes to our production of milk and dairy products in factories, but we need drivers to take that to the shops.”

He added, “On average we’re delivering to about 2,300 shops a day, and we’re regularly not able to deliver to about 10% of our shops. That gives you an idea of the type of shortage we’re dealing with.

“Everyday items, when the shops don’t have milk, that tends to cause concern.”

He added that the surge in energy prices had affected “all aspects” of the business.

“Energy is clearly one of the key cost drivers, but labour is another one,” he said. “We’re a food company, so packaging rises as well.

“So inflation would be one of the key issues that we’re navigating as a business.”

This is also have a knock on effect for dairy farmers as they have been forced to throw away tens of thousands of litres of milk down the drain due to HGV driver and labour shortages.

A dairy farmer said he was forced to throw away 40,000 litres of milk in the last two months because no drivers came to collect.

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