BBC News: Monday, 17 February, 2003, 10:17 GMT
Jersey's dairy industry may never recover unless extra funding is provided now, according to a new report.
The stark warning comes after a review of the dairy industry which also calls on farmers to reduce costs.
The review has been carried out by independent consultant Dr Donald McQueen.
The aim of it was to find ways to ensure the industry is financially viable.
People involved in dairy production were interviewed as part of the review process.
Dr McQueen said Jersey's States needed to inject £340,000 into the industry now.
If this was not done, he said, it could be the end for dairy production as a viable business.
Dr McQueen said the funds needed to be in the form of 'headage' payments per cow, and a reduction in the payments on loans to farmers was also required.