March 7, 2014


UK farmers fear over supermarket milk price war


After Sainsbury's and Co-op followed Tesco in slashing prices, farmers fear they could be victims of a supermarket milk price war.


Sainsbury's announced it would match Tesco prices after the UK's largest supermarket cut the price of four pints to £1 (US$1.67), from £1.39 (US$2.33).


The Co-op dropped the price on one pint to £0.45 (US$0.75) from £0.50 (US$0.84), but said it would leave the price of its four-pint bottles unchanged. Asda has sold four pints for £1 (US$1.67) for more than a year.


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


He said they will be monitoring all retailers to ensure these price promotions do not get passed back to the farmer.


Echoing Tesco's argument, Sainsbury's and the Co-op maintained that retail prices were not related to what they paid farmers.


Experts think the price cuts of four pints is now just £0.11 (US$0.18) more than two pints in some stores 0- could create more waste.