Farming News - ASDA forges ahead in New Year food battle

ASDA forges ahead in New Year food battle

 

ASDA is leading ahead of the ‘big four’ supermarkets in the battle to win market share back from discounters.

 

Only yesterday Farming Online reported their reduction in milk price to consumers seeing a four pint item drop to 89 pence.

 

But today, the retailer slashed its price of eggs to 79 pence for half a dozen free range.

 

Growth from discount retailers such as Aldi and Lidl have seen rapid growth in the UK clawing market share from the ‘big four’ – Tesco, ASDA, Sainsbury’s and Morrisons with low cost products attracting the cash savvy consumer.

 

But today ASDA’s egg prices dropped with price-cutting extending across its egg range.

 

Six large Asda free range eggs are being sold for 99 pence – down from £1.65; six very large free range eggs are now priced at £1.09 – down from £1.80; and six medium free range eggs are being sold for 89 pence – down from £1.25.

Many egg producers worry that these price cuts may affect them but its understood that, so far, ASDA is not looking to recover the discount from its egg suppliers.

 

However, heavy discounting may increase demand for free range eggs still further in what has been a very tight market. Egg traders had difficulty obtaining free range eggs towards the end of 2014 and any increase in demand may exert more upward pressure on producer prices.

Many in the egg industry said that discounting was at least partially responsible for strong free range egg demand in 2014. Although ASDA is also cutting the price of cage eggs – down to 55 pence for six from 89 pence – the reduced price of free range eggs may encourage even more people to opt for higher welfare.