A review is to be carried out into the progress in trying to get special protection for Guernsey butter.
The States applied for a protected designation of origin (PDO) status from the UK government last year.
It would mean only butter produced locally could be called Guernsey butter.
The Commerce and Employment Department said Jersey had failed to obtain a PDO for its butter, so it would investigate whether it was still worth pursuing.
The department said sales of Guernsey butter, both locally and for export, were very good.
Jersey Royal potatoes, Orkney beef and lamb and Cornish clotted cream are among the products already awarded a PDO.