THE Dairy lost nearly twice as much as expected last year. The final figure on the audited accounts stands at £290,000.
Originally, it was expected that the loss would be £80,438, but by last autumn the situation had worsened and the estimated figure was £156,199.
The Commerce and Employment Department said that though there had been a small increase in total sales, the trading position had worsened since 2005.
The loss was disappointing and it said it was clear that despite the Dairy’s efforts to control costs, it had not been possible to hold back the general effect of rises in a number of aspects of the operation. Those included things such as energy, materials and insurance.
In addition, the gate price of milk had not changed in three years.
The department’s current States report on the industry refers to the financial situation of the Dairy. That is part of the reasoning behind the proposal to increase the price of milk by 5p per litre.
The Dairy accounts, which had been approved by its management board and the department, would be forwarded for publication in the June Billet.
Article posted on 20th April, 2007 - 12.00am
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