The Jersey Milk Company has reported a loss of almost £1.5m

The Jersey Milk Company is expected to announce this week details of how it is going to reduce costs.

In February, an independent review into Jersey's dairy industry said farmers and the company must cut costs for the industry to survive.

The beleaguered dairy industry has been hit by a series of problems, including over-production and the high price of milk in the shops on the island.

A 100-day deadline to come up with plans to help the industry has now expired.

Sales drop

In March, Jersey Milk reported a loss of almost £1.5m after seeing a massive drop in sales.

Demand for the company's "mini pots", once seen as the saviour of the island's industry, has halved.

There are now only 36 dairy farmers left in Jersey and costs for them are described as "high".

Islanders also do not benefit from the level of subsidies that EU producers receive.

Jersey Milk has been unwilling to give details about what costs it plans to cut, but it is expected more will be revealed towards the end of the week.