Island loses bottled milk for good as 'glass tax' drives closure

But this summer, the southern Hebridean island saw its final glass milk bottle filled.

Tarbert Farm, the island’s last remaining dairy, had supplied award-winning product from its 55 cows to west coast islands and mainland Scotland for about a decade. Those wider deliveries came to an end last year after the UK Government’s extended producer responsibility (EPR) tax came into effect.

Under the scheme, producers and users pay towards the disposal of the packaging they use, with the levy based on the weight of the material.

While the farm’s business, called the Wee Isle Dairy, sits below the £1 million turnover and 25-tonne packaging thresholds under EPR, its glass bottle supplier was forced to raise prices. That left the small dairy facing a 30 per cent increase in the upfront cost of its glass bottles. Plastic containers of the same size would have cost only about 3 per cent more.

For Don Dennis, who runs the business with his wife, Emma, the increase made production unviable.

“It would have meant charging our customers nearer £4 for a bottle of milk which we just wouldn’t do,” he said.

The couple continued supplying the island shop and local customers until last month, when they ended their glass bottle milk deliveries for good.

Mr Dennis said the decision for the business, which is also known for its ice cream and dessert sauces, was not simply about cost. The couple chose not to switch to different packaging because of environmental consequences.

“We see the plastic milk containers washing up on the beaches here on the island,” he said.

“If you think it through logically, the EPR levy is the single biggest boost to the single-use plastic packaging industry that the UK has ever experienced because every other form of packaging other than aluminium cans, which are usually plastic-lined, is too heavy.”

Mr Dennis looked into using Tetra Pak cartons, but said the company’s supply arrangements were not suitable for the small scale output.

Despite Gigha milk’s reputation and wide reach, Mr Dennis said the couple received no support from the Scottish Government as the costs mounted and ultimately forced its closure.

“Everyone in Holyrood has been totally useless,” he said.

“Our MSP Jenni Minto was aware that we were the only dairy operation on the island doing milk for the public and we didn’t hear a peep.

“Did the Scottish Government say anything about it? No. And yet the impact on businesses and the environment across Scotland is huge. I know of jam and preserve small businesses that have been in the business for decades who just shut up shop. Every single person with any sense can see the idiocy of it.”

The Wee Isle Dairy’ ice cream business and associated Wee Isle Cafe on Gigha are also due to close by the end of the year as Mr Dennis prepares to retire.

Ms Minto said: “The loss of Wee Isle Dairy’s bottled milk deliveries is huge. These milk bottles had become iconic and I know how much Don and Emma put into this aspect of their business.”

The MSP added: “Whilst these consequences may not have been foreseen by the UK Government when this legislation was introduced, it is hugely disappointing that there has not been a rethink to protect small businesses already facing so many financial pressures.”

A Department for Environment, Food and Rural Affairs spokesperson said: “We’re alive to the concerns of the glass industry, and ministers are working on ways to reduce those pressures. We strongly support them and want to find solutions.”

The Scottish Government said while fees apply to materials, including glass, no fees are applied to reused packaging, including refillable glass milk bottles.

A spokesperson said: “The scheme is designed to encourage reuse and recycling, helping to reduce waste and support a more circular economy while providing local authorities with funding to improve their recycling services.”

They added: “We recognise that businesses are adapting to the scheme and will continue to engage with industry on its implementation.”