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Price Reductions Likely for PINEHILL FRESH Milk

February 14, 2018


A pledge that consumers will see a reduction in the price of PINEHILL fresh milk following the implementation of a cess on milk products.


The cess, which is to be applied on condensed milk, flavoured milk, milk-based beverages and milk substitute beverages at a level of 10 per cent, will be used to finance a grant to local dairy farmers. These funds will allow farmers to reduce their farm gate price to the Pine Hill Dairy, eventually allowing the Dairy to reduce the shelf price of fresh milk, including its whole milk, 2 per cent milk and lactose free milk, to consumers.


Dairy Operations Manager with the Pine Hill Dairy, Lorenzo Roach, says the cess is critical to the survival of the local dairy industry. “The goal of the cess is to encourage more Barbadians to consume more local FRESH milk. We believe that when the price of fresh milk decreases, it will result in an increase in the demand and the consumption of the product, which in turn will make the local dairy industry more sustainable.”


Mr. Roach adds that the cess will also allow the local dairy industry to better compete against heavily subsidized international dairy industries. “Barbados has one of the highest farm gate prices in the world. This cess will go a long way in reducing this cost and to make our dairy industry more competitive.”


He also stresses that there are significant health benefits attached to the consumption of fresh milk. “Milk is a nutrient-dense whole food that is filled with calcium, protein and other micro nutrients. As the country seeks to reduce the prevalence of chronic non-communicable diseases among the population, fresh local milk is an excellent beverage alternative for both children and adults.”


The Cess on milk was announced in the 2015 Budgetary Proposals. Since then, there have been several meetings with all stakeholders in the dairy industry, who agree that the Cess has the potential to benefit all parties.


CAP. 1: From left, PINEHILL fresh 1% low fat milk, PINEHILL whole milk, PINEHILL 2% reduced fat milk, PINEHILL 2% reduced fat lactose free milk, PINEHILL fresh whole milk, which are to see a price reduction following the introduction of the cess on milk.