April 12, 2023
(press release)
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• Retailer drops price of milk for first time since May 2020 “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. “Whether you’re buying a branded favourite covered by our price lock, stocking the cupboards with essentials from Aldi Price Match, or treating yourself to an exclusive deal with Clubcard Prices – you can be confident of finding great value at Tesco.”
Tesco 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.
Over the course of the last 12 months, Tesco has provided significant support for a number of agriculture sectors, such as financial support for dairy farmers, including a near 20% rise in prices in March last year; introducing an above market price for its 120 Lamb Group farmers; £10 million of extra funding for UK pig farmers, announced in May last year; and additional financial support for fruit and veg growers. In November, it also announced a near £14 million package of support for the British egg industry, with support being paid to suppliers to cover the cost of handling, processing and egg production, including any increases in feed for farmers.
Tesco’s price lock underlines its unwavering commitment to providing great value for customers and comes in addition to its Aldi Price Match, which covers hundreds of family staples, and Clubcard Prices offers, which provide thousands of deals for customers.
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.
Products price-locked by Low Everyday Prices include:
Product Low Everyday Price
Yorkshire Tea – 40 bags £1.50
McCain Naked Oven Chips – straight, 900g £1.95
Cushelle Toilet Tissue, white – 9 roll £5.60
Oykos Strawberry Greek Style Yoghurt 4 x 110g £2
Shredded Wheat 30 pack £3.20
Kenco Smooth Instant Coffee 200g £6
Tesco Quadruple Strength Orange Squash - No Added Sugar 1.5 Litre £1.80
Hartley’s Strawberry Jelly 135g 95p
Homepride Self-raising Flour 1kg £1.65
Aquafresh Fresh & Minty toothpaste 75ml 80p
Notes to editors:
• Since November 2007, Tesco has paid £300m over market prices to its dairy farmers. By paying a fair price, Tesco farmers have been able to invest in animal health and welfare, carbon reduction initiatives and biodiversity improvements.
• The price we pay is independently set and takes into account inputs such as feed, fuel and fertiliser, resulting in a fair price which is reflective of the cost of production.
• To find out more about the Tesco Sustainable Dairy Group, visit our plc site.
• Price of milk may vary in Express stores.
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