The National Union of Farmers (NFU) has said that supermarkets – not suppliers – should pay for the latest round of cuts in the UK supermarket price war.
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“Milk in particular is one area that has seen heavy discounting of late. Retailers cut prices to increase footfall, meaning that discounts can be offset against higher sales elsewhere,” a spokesperson for the NFU told just-food today (18 August).
“Producers, on the other hand, are struggling with rising costs and these businesses are unable to take reduced selling prices.”
The NFU and food producers are concerned that, while retailers have said they are meeting the cost of price cuts, in the long run this expense will be passed down the supply chain.
Retailers, such as Tesco and Asda, have recently launched aggressive pricing campaigns to appeal to consumers feeling the pressure from the credit crunch and rising food and fuel bills.
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By GlobalData
