Tuesday, November 21, 2017

Sainsbury’s and Co-operative join Tesco in cutting price of milk

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Sainsbury‘s and the Co-operative have followed Tesco in slashing milk prices, creating fears that farmers are bearing the brunt of a supermarket price war.

Tesco announced that the price of a four pint bottle of milk as been cut from £1.39 to £1 from 3 March but insisted that farmers will not be out of pocket. The supermarket said the new lower price for milk would have “no impact” on the price Tesco pays to milk farmers.

Sainsbury‘s have also matched Tesco‘s prices of four pints to £1 from £1.39.

Tesco said on Twitter: “We pay amongst the highest milk prices, this is independently set above the cost of production.”

Meurig Raymond, president of the National Farmers‘ Union, said farmers were concerned that the price war could undermine farm gate prices.

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

Co-op cut the price of a one pint bottle of milk to 45p to 50p and a two pint bottle to 85p from 89p. A four pint bottle of milk remains the same at £1.39.