Guernsey Press

Dairy looks for ways to deal with milk sales decline

GUERNSEY DAIRY has unveiled plans to try to cope with falling milk sales.

Published
Dairy general manager Andrew Tabel. (Picture by Sophie Rabey, 28816516)

The Dairy currently requires approximately seven million litres of milk per annum to align fresh liquid milk sales with raw milk production – it has to take about eight million litres a year from farmers.

‘We are very aware of the changes in consumer habits and are working on a strategic marketing plan to mitigate the decline in liquid milk sales,’ said general manager Andrew Tabel.

‘As part of this initiative, we are reviewing our existing milk product range with a focus on market share, price points and positioning. This may entail a change to pack sizes and product listings as we look to ensure all products make a positive return on our investment.

‘Retail and trade prices will continue to be monitored to ensure we remain competitive within our target market sector, which will help to sustain the local dairy industry and its contribution to the community.’

The Dairy is also investigating alternative uses for surplus milk, cheese whey and/or ‘fatless’ milk.

Export markets, particularly for butter, remain an important revenue stream.

‘Together with our marketing partner, we will be looking at making some tactical changes that might include the repositioning of some product lines with different pack sizes, recipes etc.

‘We are also continuing to work on efficiency targets, such as reducing energy and water consumption across the site, as well as the procurement of ingredients, raw materials and transportation.

Guernsey Dairy is committed to purchasing all milk produced by local farms and is currently working with farmers to align raw milk production with liquid milk sales while maintaining a year-round supply.

It has been on its current site since 1951 and it was last refurbished in 1989.

Mr Tabel said opportunities to improve efficiency were limited by the layout of the site and buildings and the age of some of the processing equipment.

The States voted to progress investigations into building a new facility, which is expected to be completed in 2024.