MILK is set to rise by a shock 17p a litre to 87p from 1 December. This follows a secret meeting with retailers this week at which the increases were outlined.
But the biggest beneficiary will be the States Dairy. Milkmen will get just 3p more.
The inflationary move - which will follow Guernsey’s RPI figure rising to a new high of 4.9% - has angered garage proprietors, who have been criticised by government for their prices.
The Guernsey Press has learned that Commerce and Employment has now considered the independent milk price review panel’s recommendation for the 25% increase.
The department is understood to have accepted in principle the recommendation, which will make milk more expensive per litre than petrol across the island.
‘It’s all right for people to put 17p on a litre of milk, but we have been criticised far too often for our petrol prices and we make less than that,’ said San Lorenzo Garage proprietor Ian Bowtle, after being told of the proposals by the Guernsey Press.
Commerce and Employment director of client services Richard Nash would not comment on the price yesterday.
An announcement is to be made after the board had met milkmen to discuss direct billing. A meeting with them was being arranged for next week.
‘After that we will know with clarity what the retail price of milk will be,’ he said.
It is understood that the review panel has recommended that direct billing is retained, but the board wants to abolish it. The panel is recommending that the price of milk should be raised to 88p if direct billing is retained.
Mr Nash said the board would be consulting milkmen and writing to shops that would be affected. The board hoped to have resolved the matter by its next meeting, on 30 October, after which an announcement would be made regarding the price.
It is understood that farmers will get 5.7p of the rise. In July, Guernsey Farmers’ Association spokesman James Watts said farmers were looking for 6p per litre to add to the 52p they are currently paid. Milkmen will get 3p of the rise, or 4p, depending on the direct billing decision. The largest portion of the rise, 8.3p, will go to the dairy. It currently takes 30p for each litre sold.
Mr Watts and Guernsey Milk Retailers’ Association secretary Kerry Piriou declined to comment.
Milk in Jersey costs 96p a litre. Last month in the UK, its retail price rose by between 15 and 20%, with Asda increasing the cost of its four-pint (2.26 litres) containers from £1.15 to £1.34. A doorstep pint (0.56 litres) costs 50p.
The milk price review panel was set up following the April States debate on the future of the island’s dairy industry.
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