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The Chair of Guernsey Dairy has warned in the companies’ 2023 accounts that “failing infrastructure” and “no clear direction” from the States on future capital investment continued to present challenges to it last year.
The Dairy has estimated that even if the next States prioritises the construction of a new plant in 2026 around £6.25m will need to be invested in the current facilities over the next five years.
It comes as the States’ wider accounts reveal that just £45m was spent on capital projects last year.
A loss of £90,000 was recorded at the Dairy in 2023, an improvement on 2022’s performance which saw a loss of £463,000.
But it was noted that losses were limited last year due to fewer unplanned and reactive repairs required on the ageing dairy facilities.
But there’s a more positive outlook for dairy farmers, with input costs such as feed and fertiliser falling from historic highs following Russia’s invasion of Ukraine.
Mr Thompson said this should see farming inputs reduce this year and reduce emergency government support for the industry introduced at the start of 2023.
He also revealed that Environment & Infrastructure are just months away from publishing a new vision for the dairy industry which is expected to “make recommendations pertaining to the sustainability of the industry including future subsidy payments to farmers”.
Managing Director Andrew Tabel said a “fundamental review” of support provided to farmers is needed “to protect the future of the local dairy farming industry”.
Pictured: The dairy put buttermilk on supermarket shelves for the first time in 2023.
300,000 less litres of raw milk were supplied by farmers to the plant in 2023, missing an agreed target of 7.6m litres.
Milk sales also fell by 1.1% year-on-year, but revenue was up by half-a-million pounds for liquid milk.
Turnover increased for butter, cheeses, cream and ice-cream.
Exports of butter decreased by 0.6%, however.
The Dairy Management Board has now agreed to fix the supply quantity at 7.4m litres until 2026.
“I would like to thank the dedicated staff and employees for all their hard work, and commitment throughout the year,” Mr Thompson said.
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