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The Grocer Talking Retail

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Milk prices falling as spring flush boosts supplies in UK

Supermarkets are slashing their prices for fresh milk again as the spring flush brings an abundance of supply in Britain.

The cost of supermarket fresh milk rose earlier this year, when Waitrose and Sainsbury’s increased their price for four pints of fresh own-label milk from £1.10 to £1.15, following similar moves from Morrisons and online giant Amazon Fresh at the end of 2018. At the time, there were concerns the difficult conditions for dairy farmers caused by the summer heatwave would push up production costs and tighten supplies.

However, supply shortages failed to materialise and Sainsbury’s reduced its price for the SKU back to £1.10 last month, while Amazon Fresh and Morrisons have both reduced their price to £1.09. 

It means the three retailers are back in line with Asda and Tesco, which held their price for four pints of own-label milk at £1.09 despite the turbulence at farmgate last year. Iceland has also kept its price at £1 – making it the cheapest major retailer for own-label fresh milk [Edge by Ascential 2 May 2019].

Source: The Grocer May 9 | In-store Analysis