Change on the way for Guernsey Dairy

Tuesday 20 October 2020

We could see some changes in the way the Guernsey Dairy operates, as it seeks to make up for losses caused by more people swapping milk for plant-based alternatives.

The business is reviewing its product range and is considering a change in pack sizes and product listings.

It's also looking into different uses for surplus milk, cheese whey and 'fatless' milk.

"We are very aware of the changes in consumer habits and we are working on a strategic marketing plan to mitigate the decline in liquid milk sales," said General Manager of the Dairy, Andrew Tabel.

Pictured: General Manager of the Dairy, Andrew Tabel.

"As part of this initiative, we are reviewing our existing milk-product range with a focus on market share, price points and positioning. This may entail a change to pack sizes and product listings as we look to ensure all products make a positive return on our investment.

"Retail and trade prices will continue to be monitored to ensure we remain competitive within our target market sector which will help to sustain the local dairy industry and its contribution to the community."

At the moment, the Dairy is obligated to take all milk produced by local farmers who fall within certain criteria. That equates to about eight million litres each year. However, the Dairy currently only needs about seven million litres.

“Together with our marketing partner, we will be looking at making some tactical changes that might include the repositioning of some product lines with different pack sizes, recipes etc," Mr Tabel continued.

Pictured: The Dairy his considering changing pack sizes, product range and prices.

"We are also continuing to work on efficiency targets, such as reducing energy and water consumption across the site, as well as the procurement of ingredients, raw materials and transportation."

Mr Tabel said opportunities to improve efficiency were limited by the physical layout of the Dairy site, and the age of some of the processing equipment.

The Dairy has been at its current site since 1951 and it was last refurbished in 1989.

However, it is expected to move in the coming years, after the States agreed to progress investigations into a new facility.

Pictured top: The Guernsey Dairy.