Britain’s largest dairy producer has warned grocery prices will continue to rise after customers spotted Lurpak butter selling for more than £9 a pack.
One social media user posted a photograph of a 1kg tub selling for £9.35 and Ocado is selling it in this size online for £9, while Sainsbury’s online and in store list a 750g tub for £7.25.
It comes as the country faces the worst inflation in 40 years, climbing 9.1 per cent in the 12 months to May, the highest since at least February 1982 when it reached 10.2 per cent.
Speaking about the rising food costs, Arla Foods’ chief commercial officer Peter Giortz-Carlson whose company sells Lurpak, Cravendale and Skyr, said he has “never seen anything like it” in his 20 years in the industry.
Speaking to Sky News, Mr Giortz-Carlson said milk famers are making a loss on farms due to the rising costs of deef, fertisliser and fuel.
Simon Roberts, Sainsbury’s chief executive, has also warned that pressure on household budgets “will only intensify over the remainder of the year” as he pledged to invest more money into improving value for shoppers.
“We really understand how hard it is for millions of households right now and that’s why we are investing £500 million and doing everything we can to keep our prices low, especially on the products customers buy most often,” he said.
Food prices have jumped 8.6 per cent, a 13-year high, up from 6.7 per cent in April, in part due to the impact of Russia’s invasion of Ukraine on global food markets.
Marc Gander, spokesperson for The Consumer Action Group, said that while shoppers are right to be alarmed, “they had better stop being shocked because that’s the way it’s going”.
“But there are lots of other alternatives around including own brands which are very much cheaper,” he added. “It’s a mystery why lurpak has to be nearly £10 a kilo when own brands are often about half of that amount.”
On the Lupak price rise, spokesperson from Arla Foods toldThe Independent: “While we don’t set the prices on the shelves, we do work closely with the retailers to ensure our farmers receive a fair price for the milk they produce.
“Prices on the shelves have had to rise in recent months to ensure our farmers can continue supplying the products that we all enjoy.”
A spokesperson for Sainsbury’s added: “The price of products will be influenced by a range of factors, including manufacturer’s costs, and we are doing all we can to mitigate rising costs where we can.”
