The proposed scrapping of Guernsey's 50-year-old milk law is set to lead to cheaper milk in the shops. The move has been prompted by new EU competition laws and the need to protect the island's dairy industry.
In future, the dairy will no longer fix the retail price of milk but will let wholesalers decide the cost.
Commerce and Employment Minister Stuart Falla says he expects retail prices to fall, although home deliveries might become more expensive.
He said of the wholesalers: "What they will find is the price of milk in Guernsey is set at such a competitive level that it's unlikely they would find milk cheaper in the UK.
"That's the important part from our point that they continue buying from the Guernsey source."
"That will support our farmers and that supports our countryside - if they choose not to pass all the savings to their consumer that's their commercial choice."
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