Claude Wilson, Freelance Writer
THERE ARE mixed reactions among local dairy interests whether last week's increase in the price of milk by United States farmers and the expected hike in the price of powdered milk there, could ultimately benefit Jamaican dairy farmers.
According to the Jamaica Dairy Development Board (JDDB) an increase in the price of imported powdered milk would lead to a reduction in the volume brought into the island and a subsequent increase in the demand for fresh local milk.
"If the international price of milk powder becomes more expensive then it would make our product a little more competitive", Dr. Paul Jennings, head of the JDDB told The Gleaner. But Ronnie Sutherland, marketing manager of the ICD group, owners of the Serge Island Dairies, said that the price hike in the US will not necessarily affect local milk producers.
"It only says one thing. The farmers in the United States are being paid US 52 cents per litre for their milk while the farmers in Jamaica are being paid US 30 cents (Ja$18.00) per litre. We certainly cannot produce as efficiently as the farmers in the US," he said.
Mr. Sutherland also said that given the large subsidies paid to American farmers by its Government, the price increase only would benefit farmers in that country. The US Agriculture Department last increased the minimum price of milk paid to farmers, by US 50 cents to US$1.69.
