Sainsbury’s has followed Tesco in reducing milk prices in-store and online as production costs start to decline.
The Big 4 grocer is now offering its four pint own-brand milk for £1.55, two pints for £1.25 and 90p for a pint.
The updated prices are now identical to Tesco’s latest milk pricing, as its four pint variety dropped in price from £1.65 to £1.55, two pints fell from £1.30 to £1.25 and 5p was also taken off its one pint offering, which is now available at 90p.
This came as the first time the leading retailer dropped its milk prices since May 2020.
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“Milk is a key everyday staple for so many families. We’ve seen some cost price deflation for milk across the market in recent times, and we want to take this opportunity to pass that reduction on to customers,” Tesco UK chief executive, Jason Tarry said.
A Sainsbury’s spokesperson added: “With costs going up, we are working hard to keep prices low, especially on the everyday essentials people buy the most.”
According to reporting by The Guardian, industry insiders have said retail price reductions have come as a result of large wholesalers cutting their prices by 5p a litre, as cows have produced more milk during the “spring flush”, which has led to oversupply.
Both supermarket giants have also confirmed that changes to on-shelf milk prices will not affect the amount famers are paid, with Sainsbury’s Dairy Development Group protecting them against price cuts in the market.
Tesco has said its nearly 500 British dairy farmers will continue to be paid a price that reflects the cost of production, as the price it pays farmers for milk is set independently from prices in stores.
