Dairy price wars heat up with reductions in butter prices
Following milk price cuts last week, Tesco, SuperValu, Lidl and Aldi have now all dropped prices of own-brand butter
5 May 2023
Tesco has reduced the price of its own brand butter by 40 cent from yesterday, Thursday, 4 May.
Tesco’s 454g butter (1lb) is now priced at €2.99, 40c lower than its previous price of €3.39, with corresponding reductions to apply to all other Tesco own brand Irish creamery butter formats.
The news came after a number of retailers, including Lidl, Tesco, Aldi and Supervalu, cut the price of 2 litres of milk by 10 cents last week.
“Following our reduction in retail milk prices in recent days, we are investing in butter retail prices to help customers with their household staple costs,” said Natasha Adams, chief executive of Tesco Ireland.
Soon afterwards, SuperValu announced its own brand butter would be reduced by 40c from €3.39 to €2.99 from Thursday 4 May onwards.
Aldi will also be reducing its butter prices, with 454g (1lb) being reduced to €2.99, and the 227g (half pound) to €1.85.
Lidl has also said its own brand of 454g butter will be reduced 40c from €3.39 to €2.99. Reductions of 14c in Lidl’s 227g packs of butter have also been introduced, leaving both the salted and unsalted version at a cost of €1.85.
The Irish Times reports that on Wednesday evening’s Fine Gael parliamentary party meeting, Taoiseach Leo Varadkar said the message to the retail sector is grocery prices must come down if their input costs come down.
An Taoiseach asked Enterprise Minister Neale Richmond to bring forward the next meeting of the Retail Forum as soon as possible to ensure price reductions are passed on to consumers.
Taoiseach Varadkar noted that it seemed inflation peaked at about 10%, is now at about 6% and may average at 5% this year.
Tim Cullinan, president of the Irish Farmers Association (IFA) said the cut in butter prices is concerning for farmers, who were “working below the cost of production”.