Butter prices up to give farmers fair deal, Lurpak owner warns

Butter manufacturer Lurpak has revealed the price of its products have increased so that dairy farmers get a fair deal.

The news follows Lurpak trending on social media as shoppers express their shock and outrage that a tub of the spread rocketed, with Sainsbury’s selling the 750g tub for £7.25.

Meanwhile, Asda said photos of the product covered in security tags did not indicate that they were being stolen more often, but an issue in an individual store.

“Prices on the shelves have had to rise in recent months,” a statement from Lurpak’s owner Arla Foods said. “We understand that recent inflation in food price is hitting many households really hard right now.

READ MORE: Sainsbury’s under shareholder pressure to pay Living Wage

“Unfortunately, our farmers are facing a similar situation with prices for the feed, fertiliser and fuel they need to produce milk, all rising significantly in recent months.

“While we don’t set the prices on the shelves, we do work closely with the retailers to ensure our farmers receive a fair price for the milk they produce.”

The Big 4 grocer added that its largest pack of Lurpak had been around £6 since last year and the has not changed as it was not considered high value. The price rise comes as the UK faces the worst inflation in over four decades, climbing 9.1% in the 12 months to May, the highest since at least February 1982.

An Asda spokesperson told the BBC that they have “no data to suggest the product is being stolen” more often than in the past.

“Asda hasn’t started tagging this product as a rule, individual stores may add tags to products they may have noticed have been going missing.”

A Sainsbury’s spokesperson added: “The price of products will be influenced by a range of factors, including manufacturer’s costs, and we are doing all we can to mitigate rising costs where we can.”

This follows warnings from the CEO of Sainsbury’s, Simon Roberts, has saying that pressure on household budgets “will only intensify over the remainder of the year” as the Big 4 grocer pledges to invest more money to improve value for customers.

“We really understand how hard it is for millions of households right now and that’s why we are investing £500 million and doing everything we can to keep our prices low, especially on the products customers purchase most often,” he said.



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