Price war: Milk is now cheaper than water

Posted on Jan 11 2015 - 4:17pm by IBC News

Milk price wars are threatening the livelihoods of dairy farmers, with a pint at a seven-year low and now working out cheaper than some bottled waters.

Industry bible The Grocer has blasted Asda for cutting the cost of a four-pinter to 89p this week.

It is also 89p at Aldi, Lidl and Iceland while at Waitrose, Tesco and Sainsbury’s it is £1.

Supermarkets insist farmers are not paid less as discounts are carved out of profit margins. But farmers argue milk has been devalued as a commodity.

Dairy expert Ian Potter called the price war “devastating” while National Farmers’ Union dairy board chairman Rob Harrison said cuts had left the body “incredibly angry and ­frustrated” and have “a continued detrimental impact”.

James Hole of protest group Farmers for Action warned stores: “The industry is in crisis.”

The Grocer said: “Supermarket price wars have pushed the price of four-pinter milk below that of some bottled waters.

It said that the magazine’s research showed that based on price per litre across the big four supermarkets, fresh own-label milk sold in four-pint bottles has become cheaper than the average price of larger packs and multipacks of bottled water.

“Four-pinters have been a key weapon in the price war and suppliers fear another raft of retailer cuts “ said The Grocer.