Supermarkets announce cuts in butter prices
The price reduction comes just six days after Lidl, Aldi, SuperValu and Tesco said they dropped the price of their own-brand 2-litre carton of milk by 10c.
A number of supermarkets across Ireland have said they will be cutting the price of a 464g (1lb) block of butter by 40c from Thursday, May 4.
The move was first announced by Tesco on Wednesday, with the supermarket saying it will be pricing their 454g butter at €2.99, down from €3.39.
Tesco Ireland CEO Natasha Adams said they will be “investing in butter retail prices to help customers with their household staple costs”.
She added: “With household budgets under increasing pressure we are absolutely committed to helping our customers, by keeping a laser focus on the cost of the weekly shop.”
Tesco also said that all their own-brand butter is sourced from Irish farms, although they do not purchase directly from Irish dairy farmers but from processors.
Aldi told to the that it will also be reducing “the price of butter by 40c on the pound and 14c on the half pound, to €2.99 and €1.85 respectively.”
SuperValu said they will be following suit, dropping the price of a pound of butter to €2.99.
A spokesperson for Lidl confirmed they will also be reducing prices on its private label Dairy Manor butter effective from May 4. This will see its Irish Creamery Butter (454g) drop by 40c and see both the Irish Creamery Butter and Unsalted 227g fall in price by 14c.
The price reduction comes just six days after Lidl, Aldi, SuperValu and Tesco said they dropped the price of their own-brand 2-litre carton of milk by 10c.
However, the reduction in milk and butter prices has caused concern for farmers for the “obvious targeting of two key indigenous food products produced to the highest standards” that will now face higher production costs than the price they will receive.
In a statement reacting to the news of Tesco's butter price cut, Irish Creamery Milk Suppliers Association (ICMSA) president Pat McCormack said: “We are taking that to mean that today’s price reductions are to be financed entirely out of Tesco’s margin — which are easily large enough to absorb this cut in customer price.
“Farmers will now require Tesco and other corporate retailers to confirm that this is the case and that there are no circumstances where the supermarket chains will enforce this decision and reduction on their supplier Co-ops and farmers.”.
The price reduction is good news for consumers with milk and butter a staple product in most households shopping each week.
However, it should be noted that the national average price of milk had risen from €1.83 to €2.28 since the Russian invasion of Ukraine — a rise of 24%.
The drop in prices announced on Friday for milk brings a 2-litre down to €2.19 — this is significantly up on the average price a year ago.
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