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Food- Retail Giants Start Milk Price War

Retail giants price war puts milk in firing line

5 March 2014 | By Ben Briggs

Tesco Ads

SQUEEZED retailers once again made milk part of the frontline fight for consumer spending this week.

Tesco slashed the price of a four-pint carton from £1.39 to £1 and The Co-operative followed suit by dropping one pint from 50p to 45p and two pints from 89p to 85p.

Sainsbury’s also dropped its four pinters from £1.39 to £1 and its six pinters from £1.99 to £1.48.

The moves were slammed by farming leaders while farmers took to Twitter (see panel) to voice their anger.

Tesco, which placed full-page adverts in many of the national newspapers to make it clear the cost cutting exercise would not affect farmers’ milk prices, said the reduction was part of its £200 million pledge to reduce the cost of everyday items.

Both Tesco and The Co-operative said farmers would not see a change in the price paid for their milk.

  1. president Meurig Raymond said: “While Tesco has been quick to point out this latest price promotion will not impact on farmgate prices, we are concerned about the price war having an undermining effect.

“We will be monitoring all retailers to ensure these price promotions do not get passed back to the farmer.”

Many of the big supermarkets have come under increasing pressure from discounters such as Aldi and Lidl which are eating away at their market share.

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