Guernsey’s Dairy Sector Poised for Revival with Proposed Subsidy Increase
Decade of Decline
Between 2014 and 2019, financial support for farm management halved, dropping from £2.025 million to £1.025 million, with no adjustments since then. This stagnation has effectively resulted in a real-terms reduction of £1.75 million, leaving many dairy farmers struggling to sustain operations.
E&I President Lindsay de Sausmarez highlighted the cultural and environmental significance of the dairy sector. “The Guernsey cow is such an important part of our island’s culture, heritage, and identity, and the States has previously made it very clear that this unique breed must be preserved and protected,” she stated. Beyond milk production, farmers contribute to biodiversity, land management, and the preservation of Guernsey’s rural landscape.
Stabilizing the Industry
The proposed subsidy increase is part of a broader strategy outlined in a policy letter set to be debated by the States Assembly. The recommendations aim to place the dairy sector on a more stable financial footing while encouraging environmentally responsible farming practices.
A key aspect of the proposal is revising the eligibility criteria for financial assistance, rewarding farmers who adopt sustainable practices. This aligns with the government’s commitment to fostering resilience within the agricultural sector while addressing environmental concerns.
Economic Pressures and Market Trends
Dairy farmers derive income primarily from management payments and the price paid by Guernsey Dairy for raw milk. Over the past decade, the latter has risen steadily, with prices reaching £2 per litre in some shops this year. However, the rise in milk prices has not been sufficient to offset the financial strain caused by declining subsidies.
The Guernsey Farmers’ Association has welcomed the committee’s recognition of the challenges facing the industry. "We appreciate the engagement and understanding shown by the E&I committee,” said a spokesperson. “This proposal is a vital step in ensuring the sustainability of the dairy sector and the preservation of our agricultural heritage.”
Looking Ahead
With the Assembly’s debate on the policy letter approaching, the proposed measures represent a significant opportunity to safeguard the future of Guernsey’s dairy industry. By combining financial support with incentives for sustainable practices, the government aims to ensure that the sector continues to thrive, contributing to the island’s economy, environment, and cultural identity.
As De Sausmarez emphasized, “This proposal is not just about financial support—it’s about recognizing the intrinsic value of the dairy sector to Guernsey’s way of life and ensuring it remains a cornerstone of our community for generations to come.”
