Covid farming woes push up milk prices

Tuesday 30 March 2021

The wholesale price of milk is set to rise by 5p per litre next week after covid pushed up costs for local farmers.

Jersey Dairy, which is served by 12 farms across the island, said it was hit hard by the UK lockdown’s impact on exports, as well as rising cattle feed and staff costs.

“These costs have increased by 46% and 58% respectively over the last three years and now absorb over 50% of farm income,” Jersey Dairy explained in a statement. 

They continued: “…Our review of the profitability of our dairy farms indicates that they need an urgent increase in the price they receive for the milk they supply Jersey Dairy if they are to have a sustainable commercial future and continue their environmental stewardship and hence the wholesale price of Jersey Dairy milk will increase by 5p per litre on Monday 5^th April 2021.” 

Noting that RPI had risen by 24% over the past decade, while milk prices had only risen 20%, they pledged that all income from the upcoming price rise will be “passed back to our farmers”, but noted that this still won’t be enough to address issues with profitability.

Jersey Dairy said it had therefore also taken the decision to increase the price of products in export markets. 

Other changes, they said, would be kept to a “minimum” locally, particularly Jersey butter.