The growers of Jersey’s famous Jersey Royal new potatoes have warned that recent increases in ferry charges, which exceed inflation, put their businesses at risk and add to already high food prices.
The Jersey Farmers Union (JFU) told the Jersey Evening Post that harbour dues levied by Ports of Jersey and passed on by DFDS from February are already leading transport companies to raise their rates by more than 7.5 per cent. The union added that the additional costs had been unexpected.
JFU president Dougie Richardson explained the extra charge had arisen because DFDS was unaware that the previous operator, Condor, had been absorbing the per-unit charge applied by Ports. In a submission to the Economic and International Affairs Scrutiny Panel, which is reviewing the government’s concession agreement with DFDS signed in late 2024, he described the situation as a ‘fiasco’.
Retail prices on the island are also expected to be affected, with at least one retailer planning to increase shelf prices from next month to reflect the additional transport costs according to reports.
DFDS said the new charge represents a ‘one-off correction after the operator discovered last summer that Condor had previously absorbed the cost. Ports of Jersey had issued an invoice that had not been anticipated by DFDS. In turn, the government added that the adjustment is part of securing a long-term ferry arrangement. Under the agreement, DFDS has committed to investing US$325 million in three new vessels by the end of 2031.
In its submission, the JFU stated, ‘Unfortunately, before the concession was awarded, no consultation with stakeholders took place, leading to unnecessary misunderstandings and a number of immediate course corrections being necessary.’
Mr Richardson added that once the concession was awarded and schedules published, dialogue with the government and DFDS led to changes that supported Jersey Royals exports during the season. He added that exports to Guernsey had been affected, with only one inter-island sailing per week and no service provided by DFDS. Additional sailings via Portsmouth have been discontinued. “I will be seeking urgent discussions with the minister to see if anything can be done to resolve this,” he said.
In October the government of Jersey was forced to publish a redacted version of its 20-year contract with DFDS following pressure from islanders and businesses. At the time, Jersey’s Economic Development Minister, Deputy Kirsten Morel, said, “We are now in a situation where we have a ferry service that is price-protected” and attributed business concerns to the impact of UK food inflation on local prices.
