Tesco to cut price of milk

http://www.dailymail.co.uk/news/arti...d-farmers.html

Britain's biggest supermarket Tesco has sparked a price war over milk, by slashing prices to just £1 for a four pint carton.

What about the farmers? I remember a year ago a story about the way the major supermarket chains (apart from M&S and one of the bigger chains whose name escapes me - might be Morrisons) where forcing farmers into selling milk at a ridiculously low margin to the point where they were simply looking to stop selling it. This move seems good for everyone else, especially those struggling to afford food, but unless the hit is being taken by Tesco and not leading to reduced income for the farmers then it could be damaging in the long run.

[thenry]

ASDA do it already

[Osem]

Originally Posted by thenry

ASDA do it already

As do Iceland, Lidl and Aldi.

[thenry]

Damiens doing PR for Tesco.

Originally Posted by thenry

Damiens doing PR for Tesco.

By criticising them?

---------- Post added at 22:55 ---------- Previous post was at 22:54 ----------

Originally Posted by Osem

As do Iceland, Lidl and Aldi.

The point still stands that these companies are probably passing these savings up the supply chain and we should examine how sustainable that is in the long run.

possible loss leaders

[thenry]

Originally Posted by Damien

By criticising them?

Devious tactics

Originally Posted by tizmeinnit

possible loss leaders

That's what I am hoping will happen.

[Osem]

Originally Posted by Damien

By criticising them?

---------- Post added at 22:55 ---------- Previous post was at 22:54 ----------



The point still stands that these companies are probably passing these savings up the supply chain and we should examine how sustainable that is in the long run.

It's not sustainable and it's nor fair on the farmers but other retailers have been doing it for ages.

[alferret]

Tesco own brand milk is 1.39 for a 4 pint, the creamfeild branded milk they sell, 2% & full fat has been a £1 for quite a while (couple of years or more) also until last week Tesco were selling its own branded milk @ 3 for £3.
Don't take much to work out that it's Tesco BS!

[jb66]

3 for £3 in Morrisons for years

[denphone]

Originally Posted by jb66

3 for £3 in Morrisons for years

Indeed they have so in that time Tesco has been coining it in.

[Russ]

This reminds me of one of those "support independent local shops" campaigns from a few years ago.

There was one in 2006 and where I lived at the time was a Spar shop about 200 yards away but a few streets over was a large Tesco store. The Spare was obviously more convenient and easier to get to and I was happy to go there if I needed something they probably had. At the time I was on a strict low-fat/calorie diet and need some skimmed milk for a protein shake. The thing was a lot of the time the Spar had run out of theirs. Tesco always had plenty. It's all very well supporting the 'little guy' but when they become unreliable for what you need it's hard to stay loyal to them all the time.

As for the supermarkets and the milk offers, I wouldn't be surprised if this is just a short-term move on the part of Tesco. The large companies obviously have greater buying power to keep prices low but never to the point where the reductions are be expected to be long-term. It's like with their petrol prices: full-page adverts in the papers announcing price drops of a penny a litre, followed by a very quiet and stealth rise by a penny or so.

[tweetiepooh]

Not good unless the farmers are able to sell for a good price and are not the ones to take the hit. I have family in the dairy business and what with TB and not killing badgers, weather, rising costs they really don't need a drop in the price they get for their product.

[Kabaal]

It shouldn't affect the farmers, they'll still be selling it to Tesco for the same price. Tesco are lowering the cost via cutting their profits on it is all.