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The Guardian - UK
The Guardian - UK
Business
Rebecca Smithers

Sainsbury's cuts price of milk to match discounters Aldi and Lidl

A bottle of Sainsbury's milk
Sainsbury’s will not cut the price paid to producers but the National Farmers’ Union has warned that retailers fighting for market share is driving farmers out of business. Photograph: Graham Turner for the Guardian

Sainsbury’s has cut the price of one and two pints of milk, matching those of the discounters Aldi and Lidl, in a further sign of an intensifying supermarket price war.

The price of two pints of milk has gone from 89p to 75p in large supermarkets, while the cost of one pint has been cut from 49p to 45p.

The new prices beat those of its rivals Tesco, Asda and Morrisons, and matches those in discounters.

Amid concerns about the impact of high-street discounting on hard-pressed dairy farmers, the retailer said the price paid to farms remain ringfenced to reflect their running costs.

The National Farmers’ Union has warned that retailers fighting over market share is driving farmers out of business.

Paul Mills-Hicks, Sainsbury’s commercial director of food, said: “Four pints of milk is already great value, but we want to help those doing smaller everyday shops, so reducing the price of one and two pints is a great way to do that. We’re also doing it without compromising on our values, paying a fair price to our fresh milk farmers.”

It said the costs paid to farmers would continue to be protected, with its Dairy Development Group (to which more than 300 British farmers belong) guaranteeing a fair price to those who supply it to protect them against volatile markets.

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