How Supermarket Price Cuts on Dairy Products are Impacting Consumers and Producers

Supermarket chains are engaged in a price war over dairy products, passing on cost savings to consumers in their attempts to maintain market share. Global commodity price falls have contributed to the price cuts, which are aimed particularly at consumers who shop frequently for staples such as bread and milk. Professor Michael Wallace of University College Dublin warned that dairy prices are likely to continue falling due to an oversupply of commodities on world markets. However, farmers have reacted angrily, questioning whether they will bear the brunt of the price cuts, rather than the supermarkets themselves. Despite the reduction in dairy prices, grocery price inflation has remained high, with shoppers in Ireland paying over 16% more for goods in the first four months of this year than in the same period in 2021.