Jersey cafe owners unhappy with cost of milk

Local businesses including Locke's coffee shop said they paid full retail price for milk

Independent cafe owners in Jersey have said they are paying more for milk than supermarkets, which they claim receive discounted wholesale prices.

Local businesses including The Loft and Locke's coffee shops said they paid full retail price for milk despite buying large volumes directly from Jersey Dairy, the island's sole milk processor.

They argued supermarkets and major retailers benefited from preferential pricing and delivery terms, which created an uneven playing field for smaller hospitality businesses which faced rising costs.

Jersey Dairy said it was in talks with independent cafes to address concerns and it was reviewing its pricing system.

Drew Locke, who owns Locke's Coffee Shop, said he realised the price gap after buying milk from a supermarket during a supply shortage.

"One day I got a phone call from Jersey Dairy, saying they couldn't supply us with whole milk, so I said 'what am I supposed to do for the next day because all we have is whole milk?' and they said to go to the Coop because they will have the supply.

"So I went into the Coop, I walked in there and saw that we are paying exactly the same, I could go and get my milk from the Coop for exactly the same price as I buy it off the dairy," he said.

The cafe owners said they were among about 25 businesses, who claimed the current pricing system put independents at a commercial disadvantage.

Dave Double said he purchased about 18,000 litres of milk a year

Dave Double, owner of The Loft in St Helier, said he bought about 18,000 litres of milk a year but received no discount - a situation he said was "upsetting" for independent businesses.

"We're not anti-farmer, we love the Jersey cow, the Jersey milk is exceptional to pair with our coffee."

However, he said it was hard for businesses to compete and keep prices down.

"Once you realise, you're paying full price for a product, business works where you take a product and you add value to it, and then you sell that value on to your customer.

"But when you're buying something at full price, there's no margin on that. You have staff to pay, rent and electricity," he said.

He added: "People like me who want to provide something great and add value to people's lives with a good morning coffee will disappear."

'Sustainable and affordable prices'

Jersey Dairy said it was reviewing its pricing system, and hoped to come up with different delivery and pricing options.

It said "all customers are treated fairly" but prices "do vary across customer types due to order size, delivery frequency, and cost-to-serve".

It added that its goal was to ensure a fair, sustainable, and legally compliant model that supported local farmers, customers, and the wider community.

As a farmer-owned co-operative, Jersey Dairy said it was committed not only to profitability, but also balancing fair returns for farmers with sustainable and affordable prices for customers.

It also said revenue from local milk sales did not fund export markets, instead generated income that supported local farmers and the long-term sustainability of the island's dairy industry.