Jersey milk prices rise to tackle hike in farming costs

Milk prices in Jersey are increasing from today (14 February) as a result of the rising cost of farming.

The wholesale cost of Jersey Dairy milk will now cost an extra eight pence per litre.

Jersey Dairy have confirmed that all money raised as a result of the price increase, will go straight back to the farmers and not benefit the company.

Eamon Fenlon, Managing Director of Jersey Dairy said: "All of the income raised from this price increase will be passed back to our farmers, however, this will be insufficient to address in full, the farm profitability issue that has been identified. Smaller farms will continue to run at a loss and the larger farms should reach breakeven."

Costs within the dairy industry have continued to rise over the last 12 months, which has caused significant hardship for local farmers.

Jersey Dairy have also been affected by price increases on packaging, ingredients and operating costs, having to "increase prices on its export products to absorb some of these cost increases" as a way of covering the cost.

Andrew Le Gallais, Dairy farmer and Chairman of the Jersey Milk Marketing Board commented, "We fully understand the challenging times that we are all experiencing at the present time in the island.

However, it is essential that Jersey Dairy implements these increases now if we want to have a sustainable commercial future and continue the environmental stewardship on our farms, along with a significant contribution to local food security."