Price of Jersey milk set to rise in May

The wholesale price of a litre of Jersey milk will rise for the first time since 2002.

The wholesale price, which can vary by shop, will rise by 5p on Monday 9 May.

Eamon Fenlon, the managing director of Jersey Dairy, said the decision to increase the price of milk had not been taken lightly.

He said for nine years the dairy had absorbed increases in processing, packing, distribution and payroll costs to avoid a rise in the price.

The price rise next month is the first increase towards the operating costs of Jersey Dairy since 2002.

The 5p increase will mean Jersey Dairy's wholesale price will have increased by 14.71% since 2002.

In the same period the Jersey RPI has increased by 33.71%.

Mr Fenlon said: "Even though the new dairy in Trinity is providing the expected improved efficiencies, and efficiency savings, these have not kept pace with the increases in commodity prices which have had a major impact on our processing, packing and distribution costs.

"This regrettably makes the price increase essential to ensure that Jersey Dairy and the dairy industry have a sustainable commercial future while also maintaining the island's self-sufficiency in milk supply, which is a States objective."