Supermarkets Cut Price of Milk
15/08/2008
Good news for dairy lovers: the price of milk has been slashed, as supermarkets compete with each other for customers.
Asda has announced it is now charging 50p instead of 80p for two pints of milk - their lowest price on milk since 2001. Tesco has introduced a two-litre bottle of milk priced at £1.06, while Asda and Sainsbury's dropped their price for two litres of milk to 99p.
However, while customers are likely to welcome the reduction, not everyone is happy. Farmers are reported to be afraid the move will force them out of business.
National Farmers' Union dairy board chairman Gwyn Jones told the Daily Mail: "We are playing with people's livelihoods. If (retailers) are going to pay for these promotions out of their own money, all well and good. But we know from experience they will come looking for farmers to help redress the balance. Our costs are going up and confidence is fragile. The price-cutting could force more farmers to go under."
The price cuts follow the announcement steepest inflation rate in 16 years, which has been largely attributed to the rising cost of food.
Asda has announced it is now charging 50p instead of 80p for two pints of milk - their lowest price on milk since 2001. Tesco has introduced a two-litre bottle of milk priced at £1.06, while Asda and Sainsbury's dropped their price for two litres of milk to 99p.
However, while customers are likely to welcome the reduction, not everyone is happy. Farmers are reported to be afraid the move will force them out of business.
National Farmers' Union dairy board chairman Gwyn Jones told the Daily Mail: "We are playing with people's livelihoods. If (retailers) are going to pay for these promotions out of their own money, all well and good. But we know from experience they will come looking for farmers to help redress the balance. Our costs are going up and confidence is fragile. The price-cutting could force more farmers to go under."
The price cuts follow the announcement steepest inflation rate in 16 years, which has been largely attributed to the rising cost of food.
