Wholesale milk prices are set to rise by 7.5% in April
MILK prices could rise to £1.27 a litre next month because of Guernsey Dairy's increasing costs.
The Dairy has confirmed that the wholesale milk prices are set to rise by around 7.5% on 2 April.
After the changes are implemented, the island's retailers will be at liberty to pass on the full charge as the price is no longer fixed by the States.
Retailers could, however, choose to absorb the increase in part or in full, but if they decide not to, it is expected that milk will be priced at approximately £1.27. The price of a litre currently stands at £1.18.
Guernsey Dairy general manager Andrew Tabel said the independent milk price reviewer, a role that was created by the States in 2014, had advised that the wholesale price rise was justified.
He said additional production costs included an increase in the producer price paid to farmers.
'This reflects both a general rise in farm costs, a further £200,000 reduction in the annual subsidy they receive from general revenue, and an adjustment for annual inflation.'
