Tuesday, August 22, 2006

Jersey Dairy, a response to the "Entrepreneurial" blog

Having read my blog about the Quenault's, my friend Kevin from the Jersey Dairy whilst admiring what they are trying to achieve pointed out to me that come rain or shine they will always buy their surplus milk.

As he says "Farming is hard work, so not all farmers want to go into the manufacturing business as well. Most of them seem happy to leave it to the business they own (the Dairy) to get on and process their milk".

It is a highly capital intensive business, and on an Island the size of Jersey, the economies of scale simply aren't there, so it makes economic sense to operate as a co-operative. The arguement goes, that if you don't, those herds that are left will simply reduce down further, and many more farmers will loose their livelihoods. You don't have to be a rocket scientist to work out what the environmental consequences of that would be.

It just shows you that the arguements as to whether the Jersey Dairy industry should be protected are very complex. No matter which path you choose there is a consequence.

Ultimately the right decision is the one that benefits most stakeholders, and in an Island, that's all of us.

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