Seven-year plan drawn up to keep the Dairy running

The move follows a decision last year to not progress the Future Dairy Project, which would have seen the 70-year-old St Andrew’s site have its first major upgrade in more than 30 years.

Much of the building’s fabric and equipment is reaching the end of its operational life.

‘In February 2023, Guernsey Dairy commissioned a condition assessment of the existing facility and equipment to determine the minimum level of works required to keep the dairy operational for the next seven years,’ Mr Tabel said in a statement to the Guernsey Press.

‘The condition assessment of Guernsey Dairy will include a fully costed maintenance plan for the next seven years. The final draft of the report will be presented to the Dairy Management Board shortly.’

The dairy’s annual accounts revealed that its deficit has more than doubled from £223,000 in 2021 to £463,000 last year.

Mr Tabel said that the dairy had faced ‘unprecedented increases in costs’ in freight, packaging, ingredients, chemicals, fuel, and power.

‘Prices are starting to come down, however they remain considerably higher than 2021 when the 2022 budget was set.

‘The dairy is also faced with ongoing difficulties arising from ageing plant, unreliable equipment and deteriorating infrastructure which has needed upgrades or repairs. Guernsey Dairy is exploring ways to improve its financial position and is committed to doing this in preparation for its 2024 Budget submission later this year.’

Another challenge for the dairy has been trying to purchase all milk produced by local farms.

This has proved to be an issue, as the volume of milk intake increased by 0.47%, while milk volumes sold in 2022 decreased by 2% compared to the previous year.

Mr Tabel said the dairy would shortly commence a review to reposition farm output targets in line with budget objectives.

‘This will help to bring raw milk production in line with liquid milk sales, while maintaining an even supply all year round, thereby mitigating any shortages,’ he said.

‘This will help us to remodel the operations at Guernsey Dairy to become more commercially viable and to continue to pay farmers a sustainable price per litre of milk, while minimising cost increases to the consumer.’

The work, he said, would support a financially viable dairy and feed into a report on the future of dairy farming locally, preserving the local breed and the countryside.

n States’ Trading Supervisory Board president Peter Roffey will be giving an update statement to the States tomorrow.