The cost of a litre of milk in Jersey is set to rise after wholesale production costs were increased by 15p per litre from today (Monday 9 January).
Jersey Dairy says it is in response to rising production costs farmers pay for the likes of fuel, cattle feed, fertiliser and staff wages.
It's said to be down to a number of factors including the Russian invasion of Ukraine, Covid-19 restrictions in China and trade barriers caused by Brexit which have led to supply chain issues, fast-moving currency exchange rates and market volatility.
Jersey Dairy says that the price of wholesale milk needs to increase to ensure a sustainable future for dairy farmers.
The retail price of milk is expected to rise in line with the wholesale price increases.
Figures from the Jersey Consumer Council show that there is already a 27p difference between the cheapest and most expensive places to buy milk on the island.
In January 2021, a litre of milk in Jersey cost an average of £1.22. This had risen to £1.34 by January 2022.
Eamon Fenlon, Managing Director of Jersey Dairy says: "All of the income raised from this price increase will be passed back to our dairy farmers, however, this will be insufficient to address in full the farm profitability issue that has been identified, and hence price increases will also be implemented in our export markets.
"The Government are also exploring how they can play their part in addressing the situation."
Dairy farmer and Chairman of the Jersey Milk Marketing Board, Phil Le Maistre, says: "We fully understand the challenging times that all our customers are currently experiencing with the rising cost of living.
"However, it is essential that Jersey Dairy implements this price increase now if we want our dairy farms to have a sustainable commercial future."
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