Guernsey Press

Dairy’s future needs mapping out

In ISOLATION, Guernsey’s dairy makes little sense.

Published

It is a substantial loss making operation running in a decrepit building with ageing kit forced to accept a product even when it doesn’t need it.

But its real value lies elsewhere. It is the reason why farmers can keep the iconic Guernsey breed and in turn manage vast swathes of our countryside in a low-intensity manner. The symbiotic relationship continues with milk retailers and their customers. There is value too in the premium items that come as a by-product of the milk production, cheese and butter among them.

But losses at The Dairy are mounting and change is needed to react to the market conditions. Alternative milk products, derived from the likes of oats, nuts and rice, are taking ever larger chunks out of its revenues as consumers’ tastes and habits change.

What the island cannot afford is inefficiency or a lack of flexibility. There is also a story to tell about the carbon footprint of local milk production compared to some of the items being shipped in from around the globe and the production impact associated with them. It is not simply a case of cows bad, soya beans good.

Previous administrations have worked hard at protecting Guernsey milk from the threat of cheap milk imports, they had not factored in that it would be milk alternatives that would quickly become the bigger problem.

Consumers deserve choice – and they also deserve affordability. One of the guarantees in life beyond tax rises appears to be annual hikes in the price of milk. As it creeps ever more in line with alternatives, this could end up pricing it out of the market and perpetuate a death spiral.

The Dairy’s deficit last year was nearly £500,000. It attracts little attention in the drive for savings, but that is misplaced.

Before the end of this term, the States will be asked to agree a plan on what to do with the building.

When the States decides on that, it should also decide on a strategic direction for what it produces.