Wholesale price of Guernsey milk to go up by 4% due to increased costs and drop in funding

Retailers can choose whether to absorb some or all of the higher wholesale cost for milk or pass it on to customers. Credit: ITV Channel

The wholesale price of Guernsey milk will rise by 4% from Monday 1 July, the island's dairy has announced.

It is due to a range of factors including the upkeep of the ageing dairy, a volatile supply chain and farmers needing a higher markup to offset the drop in direct government support.

Mark Thompson, Guernsey Dairy Management Board Chairman, explains: "The baseline funding which the industry receives has significantly reduced and continues to be eroded each year by the impact of inflation.

"The result is farmers are having to rely more on income from the milk the Guernsey Dairy purchases, and that is having to be passed on to consumers through the retail price."

Retailers can choose whether to absorb some or all of the higher wholesale cost for milk or pass it on to customers.

Guernsey Dairy is forecasted to make a trading loss of around £200,000 in 2024 with the island's Environment and Infrastructure Committee reviewing local dairy farming to try and find a sustainable, long-term plan for the industry.

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

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