Tesco is taking on the discount supermarkets Aldi and Lidl as it drops the price of milk for first time since May 2020
The supermarket giant has today announced a further round of price investment for customers, locking in prices on over 1,000 everyday products until 5 July.
In a further move, the retailer has also dropped milk prices for the first time since May 2020 across its stores and online, as it continues its commitment to providing great value on family staples.
As families across the UK keep a close eye on their household budgets, the price of Tesco’s most popular milk product, the four pint variety, will drop in price from £1.65 to £1.55 from today.
Tesco has announced similar price reductions across its milk range, including dropping the price of a pint of milk from 95p to 90p, and two pints from £1.30 to £1.25.
While Tesco customers stand to benefit from the price cut, Tesco will renew its commitment to its nearly 500 British dairy farmers which make up its Tesco Sustainable Dairy Group (TSDG).
The price Tesco pays farmers for their milk is set independently from prices in store, meaning farmers will continue to benefit from a price that reflects the cost of production, which takes into account fluctuations in input costs such as fuel, feed, fertiliser and labour.
Tesco UK Chief Executive, Jason Tarry, said the continued price-lock on many everyday essentials, as well as the drop in milk prices will help to provide customers with peace of mind at a time when many families are still feeling the effects of an increase in the cost of living.
“We know that customers are still having to budget carefully, so we’re pleased to be able to reduce prices where we can, and also give them a little extra help by locking the prices of more than a thousand everyday products. 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.
“This will not affect the price we pay our farmers. Our Tesco Sustainable Dairy Group was set up to ensure that farmers across the UK get a fair, independently-set price for the milk they produce for us. Our model gives farmers security when the market price for milk falls below the cost of production and reflects our long-standing commitment to our farmers.
