Calls to spend £25 million to save Guernsey's Dairy

A proposal has been put forward to spend £25 million on Guernsey Dairy.

The States' Trading Supervisory Board (STSB) has published a policy letter calling for 'major investment' into the future of the dairy.

They are proposing either a brand new facility built elsewhere on the island or a major refurbishment on the current site.

However, the government says due to difficulties with maintaining production on the site while it is redeveloped, this would not be the preferred option.

STSB estimates that both options would cost around £25 million with the potential to save half a million each year in efficiency savings.

The board's President, Deputy Peter Ferbrache, said the investment is vital to maintaining the island's heritage.

The government says failing to invest in the dairy and moving towards importing milk could lead to the closure of most of the islands dairy farms. Credit: ITV Channel TV

Guernsey Dairy saw its hygiene rating downgraded earlier this year due to the state of the building. The government described condition of the building as 'poor', saying much of the equipment is 'nearing the end of its operational life'.

The government also warned of the potential impact on the island's dairy farmers if the issues were not addressed and milk had to be imported, suggesting the majority of the 14 on the island would have to close - and the Guernsey Cattle Breed would likely go into permanent decline.

A local firm, Island Global Research (IGR), was commissioned to carry out research on islanders' opinions about Guernsey's dairy industry. The online survey was carried out by 1,615 islanders and found:

  • 83% feel strongly or very strongly that Guernsey milk should continue to be produced on island;

  • 85% agreed that the quality of Guernsey Dairy milk is 'excellent'

  • 81% agreed that the Guernsey Dairy industry is 'essential' to the future of the Guernsey dairy cattle breed;

  • 79% agree that Guernsey should be self-sufficient in the production of local milk and dairy products;

  • 77% agree that supporting the dairy industry is essential to the maintaining Guernsey's traditional rural landscape;

  • 66% were happy with controls placed on local milk sales, even though it means there is a price premium to be paid. Only 18% disagreed.

  • 52% said Guernsey Dairy milk was good value for money, and only 20% disagreed.