Dairy farmers and industry representatives have gathered outside the headquarters of Tesco supermarket to protest over the retailer’s milk price contract and its decision to slash the retail price of milk.

Around 50 members of the dairy industry, led by the Farmers For Action group, protested outside the supermarket giant’s offices in Cheshunt, Hertforshire,at midday on Tuesday (August).

The decision to take action came after the retailer launched its new range of Fresh’n’Low milk at £1.06 for a two-litre carton.

The move sparked a supermarket price war, with Asda launching a £1m promotion by cutting the price of two pints of fresh milk by 38% to just 50p.

The FFA, along with representatives from organisations including Dairy Farmers of Scotland and the Farmers Union of Wales, said the industry would continue a campaign against Tesco until it made changes.

David Handley, FFA chairman, said it was vital Tesco stopped the price war and reassessed the contract it has offered to its milk suppliers.

“It’s totally intrusive,” he said. “Farmers have to disclose personal borrowings, drawings and interest rate charges.

“Unfortunately farmers are signing it because they fear if they don’t then they won’t get 27p/litre for their milk.”

Mr Handley said FFA had a series of protests planned against Tesco, including at the Dairy Event and at the opening of the Wiseman processing plant in Bridgewater next week.

See also: Tesco and Wiseman spark row over £1.06 Fresh’n’Lo milk