1 Acknowledged

The evidence we have received leaves us in no doubt that labour shortages, caused by...

Conclusion
The evidence we have received leaves us in no doubt that labour shortages, caused by Brexit and accentuated by the pandemic, have badly affected businesses across the food and farming sector. If not resolved swiftly, they threaten to shrink the sector permanently with a chain reaction of wage rises and price increases reducing competitiveness, leading to food production being exported abroad and increased imports. We are also extremely concerned about the impact this is having on the well-being and mental health of people working in the sector.
Government Response Summary
The government acknowledges the impact of labour shortages and outlines measures taken to address the backlog of pigs, including Private Storage Aid, Slaughter Incentive Payment Schemes, temporary visas, and seeking new export markets.
Paragraph Reference
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Government Response
Acknowledged
HM Government Acknowledged
The Government has worked closely with the pig industry to help them respond to the challenges caused by the pandemic, including the loss of exports to the Chinese market for certain pig processors, disruption to CO2 supplies, and a temporary shortage of labour in the processing sector. backing up on farms including Private Storage Aid, Slaughter Incentive Payment Schemes and temporary visas for skilled butchers. Defra are also working with the Agriculture and Horticulture Development Board (AHDB) and other government departments to seek to both open new markets and to expand existing overseas markets. On 17 March 2022 Defra announced the opening of a new export market to Chile worth £20 million in the first 5 years of trade. The further extensions and amendments that Defra have recently made to the Private Storage Aid and Slaughter Incentive Payment Schemes have resulted in an increased uptake of both schemes, helping reduce the number of pigs backed up on farms. Defra does not currently plan to introduce financial support measures for pig farmers. more pigs, thereby reducing the backlog and the animal welfare impacts on farm is the most effective way of supporting farmers at this time. In recent months we have seen the backlog reduce from around 200,000 pigs at its highest point to around 25,000 currently. Moreover, the Government is committed to tackling the unfairness that can exist in the agri-food supply chain. We are planning to launch a public consultation in Summer 2022 exploring how fairness and transparency can be improved in the pork sector. As part of this consultation process, we will gather opinions about the role and effect of market consolidation on the sector. The Government will continue to work closely with the pork sector to discuss any supply chain issues and any actions taken will be developed alongside industry with the close involvement of stakeholders. Minister Prentis has also chaired two roundtables – on 10 February and 3 March 2022 - with pig industry representatives from across the UK to discuss the challenges that the sector has been facing in recent months. Labour shortages in the food and farming sector: Government response 3