The wholesale price of Jersey Milk is increasing by 4p per litre from Monday 15th May, the first rise since 2013.
The price rise has proved necessary because Jersey Dairy is facing increasing costs in its operation as a result of the British pound’s poor performance against the Euro.
Wholesale price increases of between 4% and 8% will apply across Jersey Dairy’s range of other dairy products such as ice cream and butter, effective from the same date.
Eamon Fenlon, Managing Director, Jersey Dairy, explained that Jersey Dairy had resisted an increase in its prices for as long as it could. He commented:
‘We have taken the impact of the movement in exchange rates for the last eight months in the hope that there would be signs of a recovery, but this has not been the case and we are facing increasing costs in packaging, ingredients, operational supplies and other services supplied to Jersey Dairy, with some price increases approaching 20%.
‘The Dairy industry is an important part of Jersey’s heritage, so whilst we are reluctant to increase our prices, it has become unavoidable if we are to address some of the increased costs we are facing in order to sustain the commercial future of Jersey Dairy and the dairy industry.’
Jersey Dairy has increased the wholesale price of milk only four times in the last 14 years, representing just ⅓rd of the increase in the Retail Price Index (RPI) over the same period.
Jersey Dairy implemented price rises of between 7% and 10% on the products it exports off the Island with effect from 1 January 2017.