Ulster farmers' fears for the £2 chicken

Tesco's decision to sell chickens for £1.99 makes no economic sense at a time when poultry producers' costs have risen dramatically, The Ulster Farmers Union has warned.

The supermarket has also come under fire from animal welfare campaigners after reducing the price of standard chicken from £3.30 to £1.99.

The UFU said welfare-friendly quality-assured poultry cannot be produced in the UK for £2.

"It may be good news for consumers in the short run, but ultimately this type of activity drives local producers out of business," president Kenneth Sharkey said.

"The only way to put poultry on the table at £1.99 is to rely on cheap, low quality imports and it is very disappointing to see Tesco take the industry in that direction."

The union called on Tesco to ensure the cost of their poultry price cut promotion is absorbed by the company and not passed back to its suppliers.

"Poultry farmers and processors must not have their prices cut to pay for this promotion," Mr Sharkey said.

"We can only hope that this doesn't spark a wider retail price war.

"That is the last thing farmers need at a time when their feed, fuel and fertiliser costs are at an all-time high.

"There has also been a huge public debate in the UK about the need for welfare friendly poultry production. Welfare friendly production comes at a price - Tesco's decision to cut prices sends out completely the wrong message."