LAST UPDATE | 26 Mar

RETAILERS LIDL, Aldi, Tesco, Supervalu and Centra are reducing the cost of a number of their own-brand dairy products from today.

Lidl confirmed this morning that it has lowered prices on a number of its milk and butter products, positioning itself as “leading the market” on value.

The supermarket said it will pass on around €5 million in savings to customers, with similar reductions across its milk range and butter products taking effect immediately.

The price of their Coolree 1-litre milk cartons has been reduced by 4 cent from €1.19 to €1.15, with 2-litre cartons going down by 10 cent to €2.25.

The cost of their butter products has also gone down – their Dairy Manor 454g butter has gone from €3.39 to €2.99, a 40 cent reduction.

Tesco has also announced matching cuts across a range of its own-label milk and butter products, with reductions already live online and rolling out in stores from tomorrow.

A 2-litre carton of milk has dropped by 10 cent from €2.35 to €2.25, while a 454g block of Irish creamery butter has been reduced by 40 cent to €2.99.

Their own-brand 3-litre milk cartons have seen price reductions of 14 cent, and their smaller 227g butter also went down by 10 cent.

The retailer said the move is part of ongoing efforts to support customers facing high living costs.

Similar cuts were announced this afternoon by Musgrave, the parent company of Supervalu and Centra.

Similarly to Tesco and Lidl, SuperValu and Centra’s 454g own-brand butter products reduce by 40 cent to €2.99, while all 227g own-brand butter products will reduce from €2.09 to €1.99.

SuperValu and Centra whole, low-fat and skimmed milk products will reduce from €2.35 to €2.25 for a 2-litre carton.

Aldi also confirmed an immediate reduction in prices across its milk and butter range, with reductions of up to 14 cent for milk and 40 cent for a 454g pack of its Kilkeely Pure Creamery Butter.

Aldi said it is “committed to shielding customers as much as possible from cost-of-living challenges, while continuing to support its network of over 330 suppliers”.

Niall O’Connor, Country Managing Director of Aldi Ireland, said the latest price reductions on butter and milk are “part of our ongoing commitment to lowering the cost of the weekly shop.”

He added that Aldi will “continue to absorb costs where possible, protect consumers, and support our suppliers”.

The price drops come as households brace for food inflation to rise dramatically within months if disruption caused by the Iran war persists.

Recent figures from the Central Statistics Office show a mixed picture for grocery prices.

While the average cost of a 2-litre carton of milk has fallen slightly over the past year (it’s down 2 cent on last year), butter prices have edged up by 3 cent since this time last year, alongside increases in items like bread and cheese.

Irish supermarkets previously reduced the price of their own-brand milks in October, and dropped the cost of their own-brand buttered in January.

Farmers aren’t happy about the price cuts announced today, according to the Irish Farmers’ Association (IFA).

Henry Dunne, the IFA’s Liquid Milk Chair, said the milk and butter price cuts announced this morning are short term and will damage the sector.

“This week we have huge spikes in fertiliser and energy costs and yet the supermarkets have made these cuts this morning. The cuts are tone deaf and a kick in the teeth for farmers,” Dunne said.

“The reality is that farmers who are set up to produce fresh milk, and therefore have higher costs, have had a very difficult winter with prices falling and costs rising.”

Dunne said that the IFA had recently contacted retailers and processors seeking an extra 5 cent per litre for milk producers, due to “huge viability issues at farm level”.

“Now instead of passing back a modest increase to farmers the supermarkets have started a price war on milk and butter,” he said.

“Farmers are exiting fresh milk production in significant numbers. Today’s announcement will speed up the exodus. Soon, we will not be producing enough milk during the winter months.”

Aldi and Dunnes Stores have been contacted for comment.