Guernsey milk price to go up 4%

Guernsey Dairy said the amount of States support it receives has fallen

Guernsey Dairy's wholesale milk price is set to increase by 4% from 1 July.

The increase is being attributed to cost pressures on both Guernsey Dairy and local farmers.

The price the dairy pays farmers for their milk has also increased 4% this year to reflect additional cost pressures they are experiencing.

Dairy management board chairman, Mark Thompson said "the board was conscious of the impact of rising prices on islanders".

He added: "However the reduction in States support meant local dairy farmers were now having to rely much more on income from milk sales for their livelihood."

The wholesale price is what Guernsey Dairy charges its customers for the milk they supply to shops or via doorstep deliveries.

Retailers then set the price they sell to their customers.

The age and condition of the dairy limit the potential to make efficiency savings and mean maintenance and processing costs remain high compared with a modern facility.

'More reliant'

Mark Thompson said: “In 2000, that financial support was £2m, which in real terms would be equivalent to around £4m in 2024. However this year it is just over £1m.

"As a result, farmers are now more reliant on the income from the milk the Guernsey Dairy purchases, that in turn is handed down to consumers through the retail price."

The committee for the environment and infrastructure is undertaking a comprehensive review of local dairy farming, to identify a sustainable model and viable long-term plan for the industry.

Its proposals are expected to be debated by the States later this year.