Future of Dairy Industry in Guernsey Hangs in the Balance
The once-thriving dairy industry in Guernsey is navigating through uncertain waters as it struggles with declining demand and financial pressures. The dairy is purchasing 700,000 fewer liters of milk from local farmers compared to a decade ago, a decline attributed to evolving consumer habits and soaring milk prices, which have risen by 70% since 2014. Compounding the issue, environmental payments to farmers have plummeted from £2.7 million to £1 million annually in real terms.
The Guernsey Farmers Association expressed grave concerns, warning of an impending collapse in the island's dairy sector. In response, it supported the Environment & Infrastructure Committee's proposal to bolster its farm support scheme with an additional £1.3 million annually.
"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," the association stated, outlining the challenges faced by local farmers.
The proposal for increased funding comes after a review triggered by emergency support measures during the Covid pandemic, Brexit, and the war in Ukraine. The initiative aims to provide financial stability for farmers over the next five years, with plans for a comprehensive industry review by 2030.
E&I President Deputy Lindsay de Sausmarez emphasized the economic stresses on dairy farmers, highlighting their crucial role as custodians of the countryside. "Even for those who don’t consume dairy products, farmers maintain our rural landscape and support biodiversity," she noted.
The committee and the association underscored the importance of safeguarding the iconic Guernsey cow, cherished worldwide as a rare breed deserving protection.
While the future of the dairy industry remains uncertain, consultants have tentatively suggested relocating the dairy. Meanwhile, talks are ongoing between farmers and the States regarding a potential takeover.
Association President Michael Bray stressed the necessity of stabilizing farming operations before addressing the dairy's future, stating, "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."
