Relations sour over prices for own-brand milk
A serious power struggle has erupted between milk processors and the country's leading supermarkets over the price of own-brand milk.
Both Lidl and Tesco have rowed back on a decision to increase the price of their own-brand milk to 169c for a two-litre container.
Lidl have cut the price of their two-litre own-brand milk to 149c, while Tesco are now offering a pair of two-litre packs for €3.
The price of own-brand milk was increased to 169c for a two-litre pack by three retailers – Lidl, Musgraves and Tesco.
However, this move was undermined when Aldi and Dunnes Stores held at 149c.
With Tesco and Lidl having moved back down to 150/149c, there is mounting speculation that Musgraves – who own SuperValu and Centra – will also cut their own-brand price.
Industry sources described the relationship between the processors and retailers as "poisonous" at the moment.