Guernsey shoppers could see an increase in milk prices

The wholesale price of Guernsey Dairy milk will rise by 12.6%

Consumers could see an increase in the cost of Guernsey Dairy milk after a rise in the wholesale price.

The States, which owns Guernsey Dairy, said the wholesale price would rise by 12.6% from 12 March to help offset "significant increases in production costs both for the dairy and for farmers".

It said farmers would also see a 10% rise in the price they received for their milk at the farm gate.

It means the shelf price of milk in Guernsey could go up if retailers decide to pass the price rise on to shoppers.

The States said wholesale price increase would help reduce the dairy's operating deficit.

However, it said the company was still forecast to make a trading loss this year due to "significant inflationary cost increases in raw materials, packaging, consumables, and energy since Brexit and following Russia's invasion of Ukraine".

Stuart Falla, chair of the Dairy Management Board, said price rises also reflected a reduction in financial support from the States to farmers.

He said: "The result is farmers are having to rely more on income from their milk, and that is being passed on to consumers through the retail price, which we have seen increase significantly in recent years."

The dairy said the retail price of full cream, low-fat or skimmed milk in Guernsey was about £1.40-£1.55 a litre.