Morrisons brings on milk price war - 84p for four pints

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Morrisons now sell the cheapest milk in the UK. The struggling Yorkshire-based supermarket has slashed the cost of two litres of milk, or four pints, from 97p to 84p for its Meadow Park milk brand. That means Morrisons, whose sales sank 2.5% in the 12 weeks to 2 February, undercuts key rival Tesco and Asda. Will competitors cow-er in response - or match Morrisons? %VIRTUAL-SkimlinksPromo%

Not like-for-like

When called Tesco said it had no plans to match the new Morrisons 84p sticker price. However the Morrisons discount is only applied to its Meadow Park milk brand, not to its regular store-branded milk, which is still selling for a pricey (in comparison) £1.39 for 2.272 litres.

The Morrisons versus Tesco-Asda comparisons are not quite like-for-like. At 84p the Morrisons milk is for two litres rather than Tesco-Asda's 2.272 litres (it's easy not to notice). That means you get 12% less milk while the Morrisons move appears - ostensibly - 19% cheaper than the Tesco-Asda £1 offer.

Supermarket price cuts are rarely straightforward. So if your family guzzles down milk, you'll need to pick and choose. But the bottom line is that milk - from almost wherever you buy it - is substantially cheaper than a week ago.

Waitrose joins in too

Sainsbury's is also now selling 2.272 litres for £1. Even Waitrose has plunged into the milk-discounting fray, snipping the cost of 2.272 pints to just a pound - but only for myWaitrose cardholders.

All the supermarkets who've discounted their milk recently have been careful to say that the price cuts are not at the expense of how much they pay the producer.

Earlier this week the NFU told AOL Money that the new milk discounting devalues "what should be a premium consumer product". Morrisons Category Director, Steve Mosey, says "We're looking after families while still looking after our farmers".
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