LAST UPDATE | 3 May 2023

SEVERAL IRISH SUPERMARKET chains are to lower the price of their own-brand butter, following reductions in the price of own-brand milk last week.

SuperValu, Lidl and Aldi will both reduce the price of 454g (1lb) of their own-brand butter by 40c, from €3.39 to €2.99.

Other Irish chains are expected to announce similar price cuts.

It is understood that the price cuts were discussed at the Fine Gael parliamentary party meeting this evening.

Taoiseach Leo Varadkar told TDs and Senators that the message to the retail sector will be that if input costs are dropping, these price cuts must be passed on to the consumer directly.

Varadkar has asked junior minister Neale Richmond to bring forward the next meeting of the Retail Forum to ensure that these cuts are passed on, it is understood.

Today’s announcements follow similar reductions in the price of own-brand milk in various supermarkets on Friday.

The reductions have angered the Irish Farmers’ Association (IFA) which said it would result in financial pressure on producers.

IFA Dairy Chair Stephen Arthur said in a statement today: “There is only one loser when supermarkets engage in price wars and that is the farmer.

“We have seen supermarkets use dairy products as loss leaders in the past. Our input costs remain historically high, so our farms cannot withstand such cuts. We are squeezed from both sides as we are consumers too. We need a fair margin,” he said.

“It is evident that the supermarkets are cutting food prices to attract customers. This could quickly escalate into a price war where only the farmers will pay the price,” he said.

The Labour party has criticised the announcements, calling for a Dáil debate on the issue of price gouging.

The party’s finance and enterprise spokesperson Ged Nash said today: “The cost of a grocery shop is extortionate right now. The government must facilitate a debate in the Dáil to get to the bottom of what is at play in the retail sector now.”

Nash said the government “must now commit to working with the CCPC to stamp out ‘greedflation’ once and for all.

“The ECB said very clearly a couple of weeks ago that one of the predominant reasons why inflation remains so high is because of rapid levels of profit-taking by large corporations.

“The reality is that far too many big corporations, like major supermarket chains, are involved in obtaining supernormal and hyper normal profits. They are effectively profit taking and that is increasing the strain on the economy.

“It is the ordinary punters across Ireland who are paying the price for that at the till in terms of higher prices for bread, high prices for milk, high prices for eggs, products that are actually produced here.”