WATCH: Future of dairy industry remains uncertain, say farmers
The dairy is buying 700,000 fewer litres of milk from local farmers than it was 10 years ago.
Demand has been forced down by changing consumer habits and price rises of approximately 70% since 2014, at the same time as environmental payments to farmers have been cut from £2.7m. to £1m. a year in real terms.
The Guernsey Farmers Association claimed yesterday that it was facing ‘a situation that clearly cannot continue without a collapse in the island’s dairy sector’, as it backed new proposals from the Environment & Infrastructure Committee to pump an additional £1.3m. a year into its farm support scheme.
‘Guernsey farmers are unable to increase milk prices to cover their costs, unable to increase output to spread costs, and governed by States’ policies on how and what to farm,’ said the association.
‘This decline and inability to react by farmers has left the industry with no clear direction and no ability to improve their financial position to invest for the future without taking huge gambles.’
Watch: Tony Curr speaks to association president Michael Bray about the uncertainty facing dairy farming in Guernsey
E&I’s proposals, which follow a review prompted by emergency support paid to farmers in the wake of Covid, Brexit and the war in Ukraine, are likely to be debated at the States meeting in February.
They cover funding for farmers for at least the next five years, with a direction to a successor committee to carry out another wholesale review of the dairy industry by the end of 2030.
E&I president Deputy Lindsay de Sausmarez agreed that dairy farmers were under ‘enormous stress economically’ and needed more financial support to survive.
‘They play such a valuable role in the island, even for people who don’t consume dairy products, because they are the custodians of our countryside,’ she said.
‘They do an enormous amount of good for our rural landscape. They support our biodiversity and the countryside.’
The committee and the association argued that protecting the iconic Guernsey cow was another important reason to increase funding and keep the industry alive.
‘The Guernsey cow is world-renowned and has spread to every corner of the globe, but yet still considered a rare breed and something we cannot afford to lose from its island home and therefore deserves our protection for future generations,’ said the association.
The future of the dairy itself remains uncertain.
Consultants for the States have recommended building a new dairy on a different site, but detailed work is still to be completed. Last summer the Guernsey Press revealed that farmers had started talks with the States about the possibility of taking over the dairy.
Association president Michael Bray said yesterday that financial support for farmers had to be settled ahead of the dairy’s future.
‘They go hand-in-hand, but stabilising farming is our biggest priority at the moment, and then we can turn our attention to the dairy and how that is managed,’ said Mr Bray.
‘What is happening on farms across Guernsey is a real point that we need to deal with right now.
‘What we are looking for is some stability and future-proofing for the industry.
‘At the moment, nobody is willing to invest any money into the industry because they don’t know what’s happening.
‘And we don’t have the money to invest, which means everything is stagnating.’
