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Guernsey's dairy farmers could get additional help from the States to the tune of £2.35million over the next couple of years to try and shore up the industry.
The Committee for the Environment and Infrastructure says by doing that, it will help restore the sector’s economic stability which has been affected by price rises and outside influences in recent years.
E&I says that the farmers deliver benefits to the rest of the island through protecting its heritage, environment, and landscape, so in turn the committee wants to support the farmers and their "important industry".
“The Guernsey cow is such an important part of our island’s culture, heritage and identity and the States has previously made it very clear that this unique breed must be preserved and protected," said Deputy Lindsay de Sausmarez, President of E&I. "But this is about far more than maintaining something for the sake of our heritage, with our dairy farmers contributing so much to our island through land management and protecting our distinct landscape and biodiversity, as well as the most obvious benefit of providing thousands of islanders with milk every day."
Pictured: Deputy Lindsay de Sausmarez.
Most of Guernsey's dairy farms’ income comes from two sources, says E&I.
They receive dairy farm management payments from the States and income from the Guernsey Dairy when it purchases the raw milk it then prepares for retailers.
The price that Guernsey Dairy pays for raw milk has increased multiple times since 2014, but the total budget for dairy farm management payments, which is distributed between the farms, decreased from £2.025 million to £1.025 million between 2014 and 2019.
It has remained at that lower level since without any increase for inflation – meaning farmers had to absorb a real-terms decrease of over £1.75 million by 2024.
However, Guernsey's dairy farmers were given £500,000 in emergency funding in 2022, with the caveat that the sector’s long-term viability was reviewed.
That review found that the dairy sector continues to be affected by historically high costs, which have a negative impact on business viability and confidence. In turn that has seen herd sizes shrink.
The fear now is that the remaining dairy farms won't be able to meet the island's demand for milk in the coming years if herds continue to shrink.
E&I hopes offering the farmers more than a million pounds this year and next will help them keep going.
The States need to agree to the payments first though, and Deputy de Sausmarez is hopeful they will.
“This policy letter is about ensuring that we can work with the sector to get them back on a more stable footing after what has been an incredibly challenging period caused by international factors entirely out of their control," she said. "In addition, we want to increase the important contribution that the industry makes to island life.
“In bringing this work forward, we’re pleased to have been able to work with local farmers through the Guernsey Farmers’ Association and are grateful for the way in which they have engaged with us so that we could make sure that what we are bringing forward is reflective of the reality of the situation.”
E&I says that, given the value to our island, the dairy farm support scheme budget should be increased to £2.35 million by 2026.
The proposal will go to the States this spring.
Pictured top: Guernsey's dairy farmers could get additional help from the States to the tune of £2.35million over the next couple of years to try and shore up the industry.
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