United Kingdom-Supermarket price war concerns farmers.

UNITED KINGDOM.

FARMERS CONCERNED ABOUT SUPERMARKET PRICE WAR.

Tesco supermarkets, announced discounts of one hundred million pounds US$150 million, that will stretch across 3,000 lines of products that they are selling in their stores.

This is prompting fears among farmers, that farm gate prices will be cut also, as Tesco control 34% of the retail market in the United Kingdom.

Tesco on Tuesday 6 January, began the price slashing offering 3 loaves of bread for 3 pounds US$4.50 and knocking 33% off the price of cabbage.

In December they were offering 3 packs of meat for 10 pounds US$15.

Tesco marketing director, Richard Brasher, said " This year the cost of shopping will be more important to customers than it has ever been and I believe they deserve to know the truth, about who offers them the best value for their hard earned cash".

Tesco said that they are going to bear the cost of the discounts, however farmers believe that in the end, the industry will have to pay.