15 August 2008, 19:48 PM
  • One of Britiain's biggest retailers, Asda, has announced it will cut the price of its two-pint milk bottles amid controversy.

The two-pint bottle will be slashed from 80p to 50p – its lowest price since 2001. Trading director at Asda, Darren Blackhurst, explains, “Customers are telling us this is the time of the month they’re really starting to feel the pinch and that’s why we’re investing in price cuts where they really count, on everyday essentials like milk, bread, butter, meat and veg.”

However, the news wasn’t welcomed by dairy farmers and the NFU who believe the multiple is playing a dangerous game. Gwyn Jones, the union’s dairy board chairman, is quoted in The Times, saying, “We are playing with people’s livelihoods here. The competition between retailers is intense. If they are going to pay for these promotions out of their own money, then all well and good. But we know both historically and from experience they will come looking for farmers to help redress the balance. They don’t often give up any of their margin for long.”

“We recognise that customers are struggling. We have had a good six to eight months, but our costs are going up and confidence is fragile. This price-cutting could force more farmers to go under.”