The price drop reflects competition, says Jersey Dairy

The cost of a litre of milk at Safeway of Jersey dropped by 7p to 89p on Friday morning, a move which puts it below the more common 90p barrier.

Jersey Dairy's wholesale prices are the same, but managing director Kevin Keen said it reflected competitive trade.

Paul Le Miere, director of agriculture in the Department for Economic Development, said: "It's good news."

"It shows that the retailers are trying to put the retailers' interests first."

'Very competitive'

Trinity farm shop owner Richard Rondel dropped his price to 90p last year.

Farmers are conscious of the high price of milk Jersey Dairy

He said: "There definitely is a price war. It's never been as competitive as it is now.

"It is very hard to compete with the supermarkets. But I don't think that I can afford to reduce my retail price more than I have."

Another small shop, Lucas Brothers in St Brelade is continuing to sell their milk for 94p, while the Co-op said they had no immediate plans to cut prices.

Jersey Dairy managing director Kevin Keen said: "The price reduction by Safeway shows that food retailing is very competitive here in Jersey as well.

"Some customers will probably be pleased that the prices are down and that supermarkets are the ones that are making it happen.