Cheaper milk needs industry cuts

UK - Significant savings need to be made in Guernsey's dairy industry before the price of milk can come down, according to an independent report.

A UK expert made several suggestions to the States after discussions with milk retailers, dairy managers and farmers.

Alan Hinton said savings could be made from dairies buying or outsourcing vans to deliver the milk or sub-contracting milkmen and paying them a fixed rate.

The changes would allow supermarkets to set more competitive prices.

Lost business

If the suggestions are implemented, local milkmen could potentially lose the biggest part of their supermarket deliveries.

The changes would give supermarkets more freedom to set milk promotions, although a minimum price limit would be set to prevent any price wars.

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Source: news.bbc.co.uk

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