Review: Dairy Review

About

To define the production, processing, and marketing of a sustainable dairy industry.

Terms of reference

The Dairy Industry in Jersey’ Background Following the recent proposals regarding the future of the Jersey Dairy, the Chief Minister and the Economic Affairs Dairy sub-Panel have agreed to undertake a joint review. The sub-Panel membership consists of two members from the Economic Affairs Panel, one from the Environment Panel, one from the Social Affairs Panel, and the Chairman of the Public Accounts Committee. It is therefore representative of a broad cross-section of scrutiny. The appointed consultants would report jointly to the above clients via the Project Manager Dr Paul Le Mière. It is envisaged that the sub-Panel would contribute with its own background research and raise appropriate questions through the Project Manager as the review is developing, while maintaining its independence. Terms of reference of the Review To define the optimum production, processing, marketing and retail components of a sustainable dairy industry value chain in Jersey. The scope includes, but is not limited to, the structure, operation and efficiency of the current production, processing, distribution and marketing arrangements undertaken by the Dairy industry and the Jersey Milk Marketing Board (JMMB). The final report will identify and compare the advantages and disadvantages of alternative industry structures that could provide lower prices to the consumer, an acceptable return to the retail sector, an adequate profit for the efficient milk producer, safeguard the countryside and cultural environment, meet Government support targets and operate within current Jersey and EU legal requirements. In addition the Economic Affairs Dairy sub-Panel will investigate the situation regarding school and welfare milk provision, as well as the application of the Rural Economy Strategy. Specific Aspects to consider 1. To assess the Jersey Milk Marketing Scheme operated by the JMMB and its processing, distribution and marketing arm Jersey Milk. 2. To identify, compare and consider the advantages and disadvantages of differing milk marketing structures for the dairy industry in Jersey in order comply with current competition legislation. 3. To critically analyse the dairy industry recovery plan in light of the current proposals to relocate a new dairy complex at Howard Davis Farm involving a commercial evaluation of optimum location, with consideration of the recent Public Accounts Committee report. 4. To review farm efficiency and improving the genetic status of the Jersey Island breed. 5. To evaluate the optimum level of milk production in Jersey in light of current liquid milk consumption in the Island, and the effects this level has on the marketing strategy of Jersey Milk. To review the price paid for liquid milk by customers and returns paid to milk producers, and to consider the Guernsey situation and report thereon. 6. To identify mechanisms to allow a change to the optimum level of production which leads to a orderly shift in production as needed, that maintains the production above the liquid milk market and which creates value which can be realized by those producers that would wish to leave the industry 7. To consider the effects of the States controls on the importation of liquid milk on the future of the dairy industry in Jersey. 8. To identify the most appropriate future structure for the dairy industry in Jersey to provide value for money for consumers, provide an adequate return for the efficient milk producer and cost effective States aid payments. 9. To consider further matters raised through the Project Manager by the Economic Affairs Scrutiny Panel Dairy Review Sub-Panel as the report is in progress and development. 10. The Dairy sub-Panel will keep under review the provision of school and welfare milk as well as the application of the Rural Economy Strategy.