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.