Tesco has dropped the price of its milk for the first time since May 2020.
From today (Thursday, April 13), the price of its four-pint variety milks will drop from £1.65 to £1.55.
It also 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.
However, the supermarket has said that these price drops won’t affect the price paid to its farmers.
While annoucing these changes, Tesco said that it was also renewing 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,” it said.
Tesco UK chief executive Jason Tarry said the retailer aims to pay a fair price to its suppliers and farmers while also introducing measures that protect and benefit its consumers.
“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,” he said.
“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.
“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.”